Every cryptocurrency user is exposed to a whole host of risks; most notably including the risk of loss of his or her funds. Such cryptocurrency loss may be associated with malice, as is true in the case of theft or hacks, or — as often is the case — an error on behalf of the user. With less experienced cryptocurrency users, the problem is often the result of a lack of knowledge or skills, but a fair portion of cryptocurrencies are also lost to ordinary mindlessness. What’s more, technical problems may arise on part of the cryptocurrency itself, taking responsibility out of the user’s hands.
Loss of funds tends to be an emotional event, and causes cryptocurrency users to flock to forums, seeking help from the internet. If we’re lucky enough to get a response online, we now have to put our trust in the solution a foreign third party, thereby generating additional risk. This technological barrier in the usage and storage of cryptocurrencies has become a significant factor in the leisurely pace of widespread cryptocurrency adoption — not to mention the significant lack of knowledge about how blockchain works and why it may be beneficial to centralized alternatives.
But why is it users are so bad with cryptocurrency security? It might have something to do with habit built up in the use of traditional financial services. As an example, sending a bank transfer to an incorrect account number doesn’t give rise to any major consequences, so why bother triple-checking a cryptocurrency address? Similarly, many online services offer password recovery functionality, so why remember your private key if you can just recover it later? The problem is that blockchain technology — with all of its decentralization — as unlike anything else we have used before.
On a related note, a great number of users would rather store their cryptocurrencies “hot”, on the same exchange they purchased them from. In doing so, they give up the benefits of blockchain technology — decentralization, security — for simplicity and mobility. However, they also add yet another vulnerability to the security profile of their funds — in this case, the risk of an attack on an exchange’s servers. This can be a more significant loss of funds that the others we’ve described, since criminal activities are often designed, prepared, and carried out in an extremely thorough manner, so as to prevent later recovery.
“By creating Prudensolve, we wanted to provide services that will provide real value for the entire industry. We are not another moonshot ICO. We do not raise money or offer rewards. We’re here to solve and provide a dedicated solution for this problem in the industry,” says Maksym Chrost, the Founder of Prudensolve.
Whatever the case may be, loss of cryptocurrencies is a widespread problem for both private individuals as well as companies. At present, many own Bitcoin Cash without knowing about it. Hundreds or even thousands are unaware their hard disks still possess the private keys to valuable cryptocurrencies. Other don’t remember the passwords to their online wallet. This is only a snapshot of the extent of cryptocurrency loss, but the common theme is that all of these situations have a potential resolution.
Recovering cryptocurrencies is no easy task — it involves plenty of time and effort, as well as specific knowledge related to the job at hand. For PrudenSolve, cryptocurrency recovery is about taking an individual approach to every new problem, drawing from our years of experience.