You may have heard different positive or negative arguments for storing bitcoin. If we compare other transferring wealth with bitcoin, bitcoin doesn’t require permission.
Or even bitcoin is a lot cheaper and borderless transfer. Whether you are targeted directly, or your wallet has been hacked, it’s time to know how to retrieve stolen bitcoin.
Even if you don’t have regular interaction with bitcoin, you may have heard many stories related to bitcoin being stolen. But you need to know there are steps to recover that stolen bitcoin.
Crypto is also becoming as easy as using a credit card but always remember, bitcoin doesn’t have any built-in protection like a credit card. In case happily, if you aren’t scammed yet, you have to look through the guide, as this will protect you from future problems.
How To Retrieve Stolen Bitcoin: 2 Main Reasons
Bitcoin can be stolen for many reasons including any cheated activity of unauthorized people trying to access your custodial wallet.
Hence, the most popular method to recover your stolen bitcoin is through two ways: to track that stolen bitcoin and complain to the crypto exchange to freeze your account. Or, in another method, you can hire a professional bounty hunter.
1. Track The Stolen Bitcoin
You can’t reverse your bitcoin transaction, but you can inform cryptocurrency platforms, and they can track the person responsible for your stolen bitcoin. Apart from that, they will also freeze your account so no more bitcoins can be stolen.
Hence if you want to track your bitcoin funds, you must hire a blockchain explorer. Although if you wish to covert your stolen bitcoin into fiat, your customer documentation is required. But that’s only the case when your stolen bitcoins are transferred to the wallet already known to a cryptocurrency exchange.
2. Hire A Professional Bounty Hunter
A professional bounty hunter is a crypto hunting service responsible for rediscovering passwords and seed phrases to track those stolen bitcoins. But in this case, you have to pay the professional; usually, the percentage of the bitcoin recovered.
Factors Affecting Recovery of Stolen Bitcoin
It is difficult to recover stolen bitcoin, but that is not 100% impossible. Still, as mentioned above, there are ways to give you the answer to how to retrieve stolen bitcoin. But there are some factors that can affect the chances of recovery. These factors are discussed below:
- The first factor is to determine whether the bitcoins are stolen or lost. This will help the cryptocurrency exchange to track the funds.
- If you permanently lose your wallet keys, the chances of recovery go automatically zero.
- There can be a third scenario where you have lost your bitcoins for legal reasons, like the crypto exchange shutting down. Your stolen bitcoin recovery process can be lengthy.
Why Is It Difficult To Recover Stolen Bitcoin?
Bitcoin is a decentralized blockchain with a group of minors. These minors are responsible for validating and verifying every transaction. That is why the central entity is missing, and you can’t contact it in case your bitcoin is lost or stolen.
All cryptocurrencies transfer is controlled through private keys, which give the holder the power to transfer, buy, or sell all digital assets.
However, investors are responsible for storing their bitcoin and securing the provided private keys. Hence, if your bitcoin private keys get stolen or lost all your funds can also be stolen forever.
Moreover, bitcoin doesn’t work similarly to storing money in banks; if you lose your bitcoin funds, the government-backed insurance policies can’t do anything.
Some organizations are starting to offer some insurance to recover stolen or lost bitcoins. But similarly, the majority of funds cannot be covered through these organizations.
Best Way to Protect Bitcoin: 4 Rules To Follow
For more than a decade, people have invested in cryptocurrency, and there are many stories about stolen or lost bitcoins. And many people are searching for the answer to how to retrieve stolen bitcoin.
But what if you get prepared before and protect your bitcoins from scammers? Fortunately, there is now a concise set of rules that will help you save your funds from hackers.
Rule#01: 2-Factor Authentication
It is one of the standard security mechanisms used throughout the cryptocurrency industry. In this process, you are asked to put in a six-digit code.
This code will be a last-line defense if your account details get hacked. Users will receive this code through different resources like a third-party app or SMS. In this case, a third-party app is said to be more secure than SMS.
Rule#02: Backup the Seed Phrase Or Password
It is more secure to store the seed phrases or passwords physically by writing them down on paper. Remember to make multiple hard copies and keep them in different geographical locations. Be secure when you store your seed phrases and password, as in case you forget or lose them, you should avoid difficulty finding them.
Rule#03: Maintain Privacy
One of the best ways to save your bitcoin from hackers or scammers is never to share your crypto account details with anyone. The fewer people know you have stored bitcoins, the lesser the chances of being scammed.
Rule#04: Register A New Email Account For All Crypto-Related Activities
However, rather than using the old E-mail address you have been using for all other activities and distributing to everyone, create a new E-mail account.
In brief, cryptocurrency is said to be the world’s leading currency which is why there is a higher risk factor in storing them. Apart from all the advantages that bitcoin offers, these coins can still be stolen or lost. That is why the most common question many investors ask is how to retrieve stolen bitcoins.
Fortunately, you can follow a few simple steps to recover your lost funds. There are two ways to recover your bitcoins one is tracking the stolen bitcoins, and the other is hiring a professional bounty hunter.
However, the possibility of recovering these stolen funds remains small. But there are now several roles; keep following them to save your bitcoin funds from being stolen.