Frequently asked questions
Basics Beginner
If I lose my hardware wallet, do I lose my crypto?
No — as long as you have your seed (and passphrase if used). Buy a new device and restore. Then consider moving funds if the lost device could be used by someone who also finds your backup.
Is 12 words enough or do I need 24?
12 words (128 bits) are considered secure against brute force. 24 words add margin. More important: was it generated randomly, and is it backed up well?
Can I store my seed in a password manager?
We recommend not. It puts the seed on internet-connected devices and behind a single master password. Keep seeds offline.
Can I take a photo "just temporarily"?
No. Phones sync photos to the cloud automatically, and deleted photos linger in backups.
Is it safe to check my seed on a website?
No. Any site that accepts seed words can steal them. This includes "validators" and "balance checkers".
Randomness Beginner Intermediate
Can I check whether my seed is random by looking at it?
No. A seed from a broken generator looks exactly like a good one and still passes the checksum. You can only judge the process: a reputable device on current firmware, ideally with independent entropy such as dice mixed in, or a verification feature. See verifying a device's entropy.
Should I add my own dice rolls?
It is optional for most people, but common advice for larger sums. Rolls mixed into a device's entropy protect you if either source is weak; in the 2026 COLDCARD case, the maker said seeds with at least 50 private dice rolls added were not at risk from the bug alone. Use enough rolls (50+ for 128 bits, 99+ for 256 bits with a fair d6), never type them into a computer, and destroy the record. See dice methods.
My wallet maker announced an entropy or randomness bug. What should I do?
Read the maker's advisory on its official site. A firmware or app update fixes new seeds only; a seed made by the flawed version must be replaced. Calmly create a new seed on fixed firmware, back it up, verify a receive address, send a small test, then move the rest. Beware of scammers using the news to ask for your words. See the case files.
Splitting & standards Intermediate
Can I convert my BIP39 seed to SLIP-39?
Not directly in a compatible way on most devices — the usual approach is to create a new SLIP-39 wallet and move funds. Trezor can upgrade an existing SLIP-39 single-share to multi-share.
Why not just split my words in half?
Each half leaks information and you need both halves anyway. See why not.
Should I use a passphrase?
It protects against theft of the seed but adds a new way to lose funds. Use one only if you will back it up properly. See passphrase.
Hardware wallets
If my hardware wallet breaks or is stolen, have I lost my crypto?
Not if you have your seed phrase (and passphrase, if you use one). Restore it on a new device, preferably the same model or a compatible one, then move funds to a fresh wallet if the old device may be in someone else's hands. Without the backup, a broken device can mean permanent loss. See what a hardware wallet protects against.
Is a device with a secure element always safer?
It resists physical extraction better: seeds have been extracted in the lab from Trezor One and Model T chips, which have no secure element. But a secure element does not stop phishing, blind signing or a lost backup, and closed secure-element code is harder to audit. A strong passphrase protects devices without one. See security models.
Is it safe to buy a hardware wallet on Amazon or eBay?
Buy from the maker's own shop, an official storefront the maker names (Trezor lists official Amazon stores), or a listed reseller. Avoid second-hand and marketplace sellers: a counterfeit Trezor bought through a classifieds site came with pre-generated seeds. See supply chain and fake devices.
My maker published a security advisory. What should I do?
Read it on the maker's own site (not a link in an email), check whether your model and firmware are affected, and follow the stated steps — often a firmware or app update. If the advisory says seeds made on affected firmware are weak, update alone is not enough: create a new seed and move funds. See the advisories table and the after-an-advisory checklist.
Should I use Ledger Recover or a similar recovery service?
It is a trade-off. It can help people likely to lose paper backups, but your encrypted seed leaves the device and recovery is tied to your identity. Many experienced users prefer an offline backup or multisig. See the 2023 controversy and recovery services. Not advice.
What extra do I need to back up for a multisig?
The wallet descriptor (or configuration file) as well as the seeds. It lists every participant's public keys and the script; without it, enough seeds may still not be enough to rebuild the wallet. Keep a copy with each seed. See descriptor backups.
How many dice rolls do I need, and where do those numbers come from?
At least 50 rolls of a fair six-sided die for a 12-word seed and 99 for a 24-word seed, on a device that hashes them. Each roll is worth about 2.585 bits, so 50 rolls give about 129 bits and 99 about 255.9. Many people roll more to allow for imperfect dice. See bits-per-roll maths.
Do I need casino dice?
No, but they help. Precision (casino) dice have sharp edges and filled pips, so they are closer to fair. With methods that hash your rolls, ordinary dice are acceptable if you add a margin of extra rolls. Throwing technique matters as much as the dice. See dice quality and bias.
Can I use a deck of playing cards to make a seed?
In principle. A fully shuffled deck holds about 225.6 bits, and each card drawn with replacement holds about 5.7 bits. In practice few signing devices accept card input, shuffle quality is hard to judge, and the recorded order is as sensitive as the seed. Dice on a device that hashes them are simpler. See playing cards.
How strong should my BIP39 passphrase be?
As random as you can manage, because BIP39 slows guessing only slightly (2,048 PBKDF2 iterations). Six random words from the EFF dice list give about 77.5 bits; eight give about 103. Avoid quotes, names and anything you could "think of". Store it separately from the seed. See passphrase entropy.
Are BIP85 child seeds as random as a fresh seed?
They are as unpredictable as the master seed they come from, and no more. A child cannot reveal the master, but if the master came from a weak generator, every child is weak too. See BIP85 child seeds.
Does SLIP-39 need good randomness when I split my seed?
Yes. The specification requires cryptographic-quality randomness for the share values as well as for the master secret, so split only on a trusted, offline device. See SLIP-39 randomness.
Does a reproducible build prove my wallet's randomness is good?
No. It shows that the released firmware matches the published source for that version, which is valuable, but the source itself can still contain an entropy bug, as COLDCARD's did for five years. See verifying entropy claims.
Comparing methods
Which backup method is best?
None is best for everyone. Simple duplicated metal backups suit many beginners; passphrases, SLIP-39 and multisig cut theft and single-point risks but add things to learn and to pass on. The master matrix and which method for which person show the trade-offs. Not advice.
Is writing half my words in one place and half in another the same as Shamir?
No. Each piece reveals most of the secret and losing one can make recovery impossible. Andreas Antonopoulos showed a piece with 16 of 24 words leaves about 80 bits to guess instead of 256. SLIP-39 shares below the threshold reveal nothing. See the anti-pattern.
Should I use SLIP-39 or multisig?
Both survive one lost or stolen backup. SLIP-39 is simpler and needs no descriptor, but the full key exists on one device when created and when recombined. Multisig never brings keys together, also protects against a compromised signing device and lets you mix device makers, but you must back up the descriptor and heirs need more help. See Shamir vs multisig vs MPC and head to head.
Is an MPC wallet the same as multisig?
No. Both need several parties to sign, but MPC enforces the threshold off-chain inside the key-share protocol, while multisig enforces it in Bitcoin script. MPC has no agreed standard and several published implementation flaws; recovery depends on the provider. See MPC wallets.
Is crypto on an exchange protected like a bank deposit?
Generally not. The UK FCA says it is highly unlikely you will be covered by the FSCS. In the US, FDIC insurance does not cover crypto assets, and SIPC does not protect crypto that is not a registered security. See UK vs USA.
Can I name a beneficiary on my exchange account?
If a collaborative custody company disappears, can I still get my coins?
Casa and Unchained both document recovery with your own keys and your wallet configuration, using open-source software such as Sparrow or Caravan. Test it before you need it. See collaborative custody.
Storage
Which metal backup is best?
Independent tests favour simple, single-piece stainless or titanium plates with punched or stamped characters. See evidence.
Is a bank safe deposit box a good idea?
Good for one share or key; not for a whole single-sig seed. Access can freeze on death.
Will a fireproof safe protect a paper backup?
It buys time, not certainty. A UL 72 Class 350 safe is tested to keep its inside below 177 °C (350 °F) for its rated time, including cool-down; EN 15659 safes protect paper up to 170 °C for 30 or 60 minutes. Neither rating covers immersion in floodwater or hose water. Put a metal copy inside, seal paper in a plastic bag, and keep a second copy elsewhere. See what safe ratings mean.
Is titanium better than stainless steel?
Not automatically. Both melt far above house-fire temperatures (titanium at about 1,670 °C, 304/316 stainless steel at about 1,375–1,450 °C). In Lopp's stress tests, thick one-piece steel plates graded A just as titanium tags did, while a thin titanium plate graded C. Design, thickness and how the characters are marked matter more than the metal. See the materials table.
Should I laminate my paper backup?
It keeps splashes off but gives no fire protection, and conservators describe heat-seal lamination as irreversible and potentially damaging to paper and ink over time. A resealable plastic bag can be opened and checked. For anything that matters, use metal. See paper.
UK: can I still get a bank safe deposit box?
From fewer places. Barclays, NatWest and RBS have closed their services, and Bank of Scotland stopped taking new items in 2001. Metro Bank still offers boxes in most stores to account holders, and some other banks offer them at particular branches. See safe deposit boxes in the UK and US.
US: what happens to a safe deposit box if the fees stop or the owner dies?
Unpaid boxes are usually treated as dormant after three to five years (set by state law), and the contents can be sent to the state's unclaimed-property office. Access after a death is also governed by state law. Contents are not FDIC-insured. See details and sources.
Inheritance
Can I put my seed phrase in my will?
No. Wills are read by many people and often become public. Use a letter of instruction and a sound key-sharing design.
Does my family need to pay tax on crypto they inherit?
Possibly — e.g. UK Inheritance Tax at 40% above the £325,000 nil-rate band (plus £175,000 more if a home goes to direct descendants; both fixed until April 2031), US federal estate tax above the exclusion ($15m per person for 2026 deaths), plus estate or inheritance tax in some US states with much lower thresholds (see the state table) — and capital gains rules differ. Both countries generally reset the tax base to the date-of-death value for heirs. See the UK and US guides.
UK: does crypto still count for Inheritance Tax if nobody can find the keys?
It can. HMRC asks executors to report crypto at its date-of-death value and, if it is known to exist but is inaccessible, to explain why and give the believed value on the IHT400. For CGT, HMRC says losing a key is not a disposal, although a negligible value claim may be possible. See HMRC's view. Not tax advice; consult an adviser.
UK: can I make a valid will electronically or by video?
Not in England & Wales at present. Wills must be signed and witnessed under the Wills Act 1837; video witnessing was a temporary measure that ended on 31 January 2024. The Law Commission has recommended allowing electronic wills, but that needs new legislation. See wills reform; consult a solicitor.
UK: what is different in Scotland?
Scotland has its own wills rules, "confirmation" from the sheriff court instead of probate, continuing powers of attorney, and "legal rights" for spouses and children over moveable property, which now clearly includes qualifying crypto under the Digital Assets (Scotland) Act 2026. See the comparison table.
Are inheritance services safe?
Reputable services are designed so they cannot spend your funds alone. Check how they verify death, how long claims take, and whether heirs can recover without them.
Inheritance outside the UK and US Intermediate
Is death treated as a sale of my crypto?
In some countries, yes. Canada treats capital property, including crypto-assets, as sold at fair market value immediately before death, and South Africa has a similar deemed disposal for CGT; both have spouse rollovers. Japan treats lifetime gifts and most bequests to non-heirs as disposals. Australia disregards the gain unless crypto passes to a foreign resident, a charity or a super fund. See the comparison table.
My country has no inheritance tax. Does that mean my heirs pay nothing?
Not necessarily. Heirs may be taxed when they sell, sometimes using your original cost (Australia, Germany, Japan) or your intention for the asset (New Zealand). India taxes later transfers of virtual digital assets at 30%. See things that differ by country.
Can I leave all my crypto to one person?
Not everywhere. France, Spain, Germany, Switzerland, Japan and others reserve shares for children or a spouse, and common-law countries let family members claim. Ask a local lawyer how a specific gift of crypto fits. See pitfalls.
I live in the EU but I am a national of another country. Which law decides who inherits?
Generally the law of your last habitual residence, unless your will chooses the law of your nationality (EU Succession Regulation 650/2012). That decides succession, not necessarily tax. See cross-border notes.
Will tax authorities find out about crypto after I die?
Exchange-held crypto increasingly, yes. EU DAC8 applies from 1 January 2026, and under the OECD's CARF most countries covered here start exchanging crypto-provider data in 2027 or 2028 (the US in 2029). Self-custodied coins are not reported by a provider, but heirs must still declare them where the law requires.
Which value should my executor use for crypto?
Usually the market value at death, with dated evidence of the source. Exceptions matter: Ireland's CAT uses a valuation date that can be later, Japan uses the price at the heir's exchange, and Switzerland publishes official year-end values for wealth tax. See the comparison.
Do my heirs have to report crypto held on foreign exchanges?
Templates & checklists
Can I fill in the templates on my computer and then print them?
They are designed to be printed blank and filled in by hand; the page has no input fields. A typed inventory or letter is not a seed, but it is a map of your backups, and copies can linger in files, cloud sync and printers — the FTC notes that networked copiers store data about the documents they print and scan. Never type seed words anywhere. See printing.
Is it safe to print the templates at work or in a library?
Blank templates contain nothing sensitive, so yes. Once filled in, do not scan, photocopy or photograph them on shared machines. See safe to write vs never write.
Should my letter of instruction be part of my will?
Usually it sits alongside the will rather than inside it. A letter of wishes is not legally binding and does not need witnesses, and in England & Wales it stays private while the will becomes public after a grant of probate (The Gazette). It must never contain seeds or passphrases. Ask your solicitor or attorney how to refer to it. See the letter template and the UK and US supplements.
How often should I test my backup and review the paperwork?
At setup, after any change, before every firmware update (Trezor's advice) and roughly once a year — Glacier Protocol suggests six months after setup and then annually. Review the letter after life events such as marriage, divorce or a move. Use the drill log, the review log and the annual checklist.
Can I use the dice worksheet to write down my rolls?
No. Roll values used for a real wallet are as sensitive as the seed. The worksheet records only a separate practice tally for testing your dice and a count of rolls; real rolls go straight into an offline signing device.
Does my multisig configuration (descriptor) need to be kept secret?
It cannot spend funds, but it reveals your addresses and balance, so treat it as private. Without it, a quorum of seeds may not be enough to find your coins, so keep a copy with every key backup. See the configuration record.
What should I do with old versions of my letter or inventory?
Date every version, say that it replaces earlier ones, and destroy the old copies (for example by cross-cut shredding) so nobody follows out-of-date instructions or finds an old map. See pitfalls.
Directory & case files Beginner Intermediate
Someone knows I hold crypto. How can I lower the risk of a "wrench attack"?
Say less about your holdings and where you live, and set things up so you cannot move everything on the spot: multisig with keys kept elsewhere, time delays, and only small balances on your phone. Report threats to the police early. Real cases from England (2023) and New York (2025, alleged) are in case files; see also coercion.
I got a letter from my wallet maker asking me to "verify" my recovery phrase. Is it real?
No. Scam letters with Ledger and Trezor branding and QR codes have been posted to owners since 2025. No genuine company will ever ask for your phrase by post, phone, email or website. Do not scan the code. See the case and a quick check before you act.
A website wants me to connect my wallet to claim an airdrop. What could go wrong?
Wallet drainers do not need your seed: they ask you to approve a transaction or permission that hands over your assets. Inferno Drainer used over 16,000 phishing domains this way. Use a separate low-value wallet for experiments and read every approval on your hardware wallet screen. See Inferno Drainer.
If I die without leaving instructions, can a court or the wallet maker recover my crypto?
Not for self-custody. Law can confirm that crypto is property (England and Wales did so in the Property (Digital Assets etc) Act 2025), and US digital-asset law lets executors ask custodians such as exchanges for access, but nobody can produce a private key that was never recorded. See courts and the law and the letter of instruction.
Is a browser-extension wallet safe for savings?
It is convenient for small amounts, but an extension can be replaced by a malicious update without you doing anything, as happened to Trust Wallet's Chrome extension in December 2025. Keep savings on a hardware wallet. See the case.
How should I use the directory?
Use it to shortlist, not to choose. Listings are neutral, with no affiliate links. Open "Evidence" on each card for pros, cons, pitfalls and sources. Cards note renamed, deprecated or inactive products, but features and prices change, so check the official site before you buy or sign up. See the directory.
Fundamentals, standards & scenarios Beginner Intermediate
I restored my words and the wallet shows zero. Are my coins gone?
Usually not. The most common causes are a missing or mistyped passphrase, a different address type or account, or a wallet that stopped scanning too early (the gap limit, 20 addresses by default in BIP44). Work through the restore checks on your hardware wallet, never on a website.
Are the 24 words from my Lightning node a normal BIP39 phrase?
If the node runs LND, probably not: LND uses aezeed, which borrows BIP39's English words but is a different, encrypted format with a version and wallet birthday. Electrum's own 12-word seeds are also not BIP39. See which standard is my backup?
Is it safe to share my xpub?
It cannot spend, but it shows every address and balance in that account, including future ones. BIP32 also warns that an xpub plus any one leaked non-hardened private key from the same account reveals all of that account's private keys. Treat it as private. See xpub risks.
Can I turn my existing BIP39 phrase into SLIP-39 or Codex32 shares?
Generally no. Trezor can upgrade only 20-word single-share backups made on firmware 2.7.2 or later; other backups need a new wallet and a move of funds. The Codex32 authors do not recommend converting from BIP39 and suggest generating a fresh seed. See interoperability pitfalls.
My house has had a fire. What should I do about my backups?
People first. Then confirm your off-site copy still exists. If the home copy cannot be shown to have been destroyed, treat it as exposed: set up a new wallet and move the funds. See the house fire scenario.
Do I have to give a border officer my phone or laptop password?
In the UK, Schedule 7 of the Terrorism Act 2000 requires people examined at ports to give information requested, and wilful obstruction is an offence; someone was convicted in 2017 for refusing a PIN and password. In the US, CBP may detain a device it cannot inspect. Carry no seed backups when travelling. Not legal advice; see travel and border checks.
Do I have to disclose crypto in a divorce?
In England and Wales, Form E requires full, frank and clear disclosure of all assets, and crypto goes under "other assets". Disclose holdings, not keys, and ask your lawyer before moving funds. See separation or divorce.
I have forgotten my passphrase. Can anyone recover it?
The wallet maker cannot. Trezor says passphrases cannot be changed, removed or recovered. If you remember most of it, an open-source tool such as BTCRecover can test variations on an offline computer. Never give your seed to people who contact you offering recovery; the FBI warns about fake recovery firms. See the forgotten passphrase scenario.
How much does a basic setup cost?
From the makers' own stores on 24 October 2026, one entry hardware wallet and one metal backup cost about £103–£198 or $132–$228. A three-device multisig costs several hundred pounds or dollars. See the price check.
Safety, scams & custody Beginner Intermediate
Someone sent me a tiny amount of crypto I did not expect. Have I been hacked?
Probably not. This is often address poisoning: the sender's address is made to look like one you use, hoping you copy it from your history later. Ledger and MetaMask say it does not compromise your keys. Ignore it, and never copy addresses from history. See address poisoning.
A company says it can recover my stolen crypto for a fee. Is it genuine?
Almost certainly not. The FCA warns about "recovery rooms" that charge upfront fees, and the FBI says not to pay for services claiming to recover lost funds. See recovery scams.
The wallet app in my app store asks for my recovery phrase. Is that normal?
No. In 2023 a fake Ledger Live app in the Microsoft Store stole at least $768,000 this way. Download wallet software only from the maker's own website. See fake wallet apps.
How do I know my new hardware wallet has not been tampered with?
Buy direct or from a listed reseller, check the seal and box contents, and follow the maker's genuineness check. Trezor, for example, ships devices without firmware and says not to use one that already has firmware installed. See supply-chain checks.
If my exchange goes bust, do I get my crypto back?
Not necessarily. In the Celsius case a US bankruptcy court ruled that crypto in "Earn" accounts belonged to the company's estate, leaving customers as unsecured creditors. See what happens if a custodian fails.
Should beginners keep crypto on an exchange or in self-custody?
It depends on the amount and your confidence. Many people keep a small trading balance on an exchange and savings in self-custody once they can back up and test-restore safely. See exchange or self-custody? and Start here.
Records, tax & estate planning Beginner Intermediate
What should I write down about my crypto, if not the seed?
What exists, where the backups are (as location codes), how to check a restore (fingerprint and first address), when you last tested, and who can help. Never seed words, passphrases or PINs. See what to record.
Is it safe to keep my xpub with my records?
An xpub cannot spend funds, but it reveals every address and balance in that account, and BIP32 warns that an xpub plus one non-hardened child private key exposes the whole account. Treat it as private. See descriptor and xpub records.
How often should I test my backup?
At set-up, before every firmware update or device wipe (Trezor's advice), every 6 to 12 months, and after life events or moving a backup. Test on the device, never on a website. See the testing cadence.
What crypto records does HMRC expect me to keep?
For each token pool: the token type, dates, numbers disposed of and left, values in pounds, bank statements and pooled costs before and after each disposal. HMRC says exchange reports are not tax calculations. See tax records.
Do I tell the IRS when I move crypto between my own wallets?
The IRS says such transfers alone mean answering "No" to the digital asset question, unless you paid the fee in a digital asset. Keep a record either way, because basis is tracked wallet by wallet from 2025. See tax records.
I received a letter asking me to register my crypto on an IRS "compliance portal". Is it real?
No. The IRS says letters with a QR code asking you to register crypto on a "Digital Assets Compliance Portal" are a scam, and that it does not require registration of digital assets. See the IRS scam alert.
What is the biggest difference between UK and US crypto inheritance?
Mainly tax: UK Inheritance Tax applies above £325,000, while US federal estate tax applies above a $15 million exclusion for 2026 deaths, though some states tax far smaller estates. Both give heirs a date-of-death value for gains. See UK and USA compared.
Why do families fail to inherit crypto?
Most often nobody knew it existed or how to reach it, the will was out of date, there was only one copy, or one person held every key. See common failure modes.
Lost or stolen crypto, and estates abroad Intermediate
US: can I deduct crypto I lost because I lost the keys?
Probably not, on current IRS sources. A Chief Counsel memo (202302011) says a token that still exists and trades is not a loss without a closed transaction, and any abandonment-type loss would be a miscellaneous itemised deduction, which is suspended permanently after the 2025 law. See lost or stolen crypto and ask a tax professional.
US: can scam victims deduct stolen crypto?
Sometimes. IRS Chief Counsel memo 202511015 says a theft loss may be deductible if it was criminal theft under state law, recovery is unlikely and the money was transferred for profit, as in some investment scams. Losses with no profit motive are not. See lost or stolen crypto.
Did the 2025 US tax law end the limit on personal theft losses?
No. Public Law 119-21 (approved 4 July 2025) made the limit permanent: personal casualty and theft losses remain deductible only for declared disasters, now including some state-declared disasters from 2026. See the sources.
UK: what happens for tax if I lose my private key?
HMRC says losing a key is not a disposal, because the tokens still exist. If there is no prospect of getting it back, a negligible value claim may be possible (CRYPTO22400). See tax records.
Do small-estate shortcuts in Singapore or Hong Kong cover crypto?
India: does naming a nominee mean they inherit?
Not necessarily. India's Supreme Court held in 2023 that a nominee for shares does not become the owner; succession law decides. Do not rely on a platform nomination in place of a will. See India.
Digital legacy, exchanges and new case files Beginner Intermediate
Will my Apple, Google or password-manager "legacy" settings pass on my crypto?
Only indirectly. Legacy and emergency-access tools let chosen people reach your cloud data, email or vault, which helps them find exchange accounts and your letter of instruction. They cannot open a self-custody wallet, and anything you saved digitally (such as a photo of a seed) becomes readable by them. Keep seed backups offline.
How do executors claim crypto held on an exchange such as Coinbase or Kraken?
Through the exchange's bereavement process: typically a death certificate, a grant of probate or letters of administration (or a US equivalent such as letters testamentary or a small-estate affidavit), photo ID and a signed letter. Neither exchange offers beneficiary designations. See the directory entries.
Can a US state take crypto left in a dormant exchange account?
Yes, under unclaimed property law. After a dormancy period that varies by state, exchanges may have to report and hand over accounts; some states sell the crypto and hold the cash. Executors can search state programmes via NAUPA. See unclaimed property.
Will my will become public?
In England and Wales, yes, once probate is granted: anyone can search and order copies. Never put seed words, passphrases or PINs in a will; refer to a separate, securely stored letter of instruction instead. See wills (UK).
Do Lightning wallets back up like an ordinary wallet?
Not always. Phoenix uses a 12-word phrase plus an encrypted channel backup kept by its operator; Muun uses an Emergency Kit PDF and a Recovery Code instead of words. Read each wallet's recovery documentation, record which wallet it is, and keep Lightning balances small. See the software wallets.
Is Ledger Live the same as Ledger Wallet?
Yes. Ledger renamed the Ledger Live app to Ledger Wallet in late 2025 and says it is the same app. Treat any email asking you to "update Ledger Live" with your recovery phrase as a scam. See the Ledger customer data breach.
First steps and quick answers Beginner Intermediate
What should I do in my first week with a new hardware wallet?
Buy direct, check the device, set it up as new, test a restore, then move a small amount before the rest. Store two offline copies apart and write a letter of instruction. The day-by-day plan is on Start here.
My written backup is missing but my wallet still works. What should I do?
Act while you still have access. Create a new wallet with a new backup, test it with a small amount, move everything across and wipe the old wallet. Trezor gives the same steps in its guidance on missing backups (Trezor). See quick answers.
I typed my recovery phrase into a website or app. What should I do right now?
Assume it is stolen. Using your hardware wallet, move everything to a wallet with a new recovery phrase straight away, then report it to Report Fraud (England, Wales and Northern Ireland), Police Scotland (101) or the FBI's IC3 (US). Full steps are in if your seed was exposed.
Someone close to me has died and held crypto. What should we do first?
Do not move anything or type any words you find into an app. Keep the devices and papers together and private, list what you find, and get legal authority first (probate, confirmation in Scotland, or a US court appointment). Start with GOV.UK or USA.gov, then the executor example.
Can I complain to the Financial Ombudsman about a crypto exchange?
Usually not. Report Fraud says most crypto activities in the UK are unregulated, so you will not have access to the Financial Ombudsman Service or the FSCS (Report Fraud). See what protects you in the UK and USA.
Why did my UK exchange ask questions about my withdrawal to my own wallet?
Since 1 September 2023, UK crypto firms have had to collect, verify and share information about crypto transfers under the "Travel Rule" (FCA). Answer through the official app or website only. Nobody legitimate needs your recovery phrase for this.
Do I have to move everything off an exchange at once?
No. Many people move in stages: test-restore the wallet, send a small test amount, then send the rest. See moving coins off an exchange safely.
Are text-message codes good enough to protect my exchange account?
They are better than nothing, but SIM swapping lets criminals take over your number and receive the codes. The FBI recorded 1,611 SIM-swap complaints with more than $68 million in losses in 2021, and recommends authenticator apps, physical security keys or biometrics (FBI/IC3).
Is an NFC backup card a replacement for writing down my recovery phrase?
What do the Beginner, Intermediate and Expert labels mean?
They show who a page or section is written for and what it assumes you already know. See what the level markers mean and the self-check.
UK estates, incapacity and exchange claims Beginner Intermediate
UK: which documents do I need for my crypto when I die or lose capacity?
Usually a will, a power of attorney for money (an LPA in England & Wales, a continuing power of attorney in Scotland, an EPA in Northern Ireland), a letter of wishes, an inventory and, if you want, sealed access instructions. Only the last should explain how to restore wallets, and none should put a whole seed in one place. See which document does what.
UK: who inherits my crypto if I die without a will?
In England & Wales, for deaths on or after 26 July 2023 with a spouse or civil partner and children, the spouse gets everything up to £322,000; above that, £322,000, the personal possessions and half the rest, with the children sharing the other half (GOV.UK). Scotland and Northern Ireland differ. See intestacy.
UK: what if someone loses capacity without a power of attorney?
In England & Wales someone can apply to the Court of Protection to be a property and financial affairs deputy. GOV.UK lists a £432 application fee, a £100 assessment fee and an annual supervision fee of £320 (or £35 for minimal supervision). Scotland uses guardianship or intervention orders, and Northern Ireland controllers. See deputyship.
UK: what does Revolut do with crypto when a customer dies?
Its UK help page says any cryptocurrency the deceased bought will be liquidated and the fiat value credited before the balance is paid to the heir or solicitor. Contact is by email to its bereavement team. See exchange claims.
UK: do I need probate before an exchange will release a crypto account?
Usually. Coinbase, Kraken and Revolut all list a grant of probate or letters of administration (or an equivalent) among the documents they ask for. GOV.UK says each organisation has its own rules. See the probate process.
UK: how much is the probate fee?
GOV.UK lists £526 if the estate is worth over £5,000 and no fee at £5,000 or less, with extra copies at £2 each when you apply (checked 24 October 2026). See probate process.
Scotland: is the Trusts and Succession (Scotland) Act 2024 in force?
Only in part. The succession changes on special destinations and on a spouse inheriting the whole intestate estate where there are no children came into force on 30 April 2024, and the rules on removing unfit trustees on 26 June 2024. When we checked on 25 October 2026, the new trustee powers, investment, delegation and duty-of-care sections, and the 12-month cohabitant time limit, were still shown as not in force on legislation.gov.uk. See commencement status.
Scotland: does divorce cancel what my will leaves my ex-spouse?
Generally yes, for deaths on or after 1 November 2016: the former spouse or civil partner is treated as having died before you, unless the will expressly says otherwise (Succession (Scotland) Act 2016 s.1). Separation alone does not trigger it, and exchange or wallet records are not changed, so update your will and access plan. See what it means for crypto.
UK: is an Enduring Power of Attorney in Northern Ireland the same as an LPA?
No. nidirect says an NI EPA covers financial matters only, must be made while you have capacity, and must be registered with the High Court (Office of Care and Protection) when the attorney believes you are becoming unable to manage your affairs. See Scotland and Northern Ireland.
UK: can the residence nil-rate band be used against crypto?
No. It applies only when a home passes to direct descendants. Crypto uses the ordinary nil-rate band like other assets. See IHT on crypto, step by step.
US estates and exchange claims Beginner Intermediate
Can I name a beneficiary on my Coinbase, Kraken or Gemini account?
Not on the pages we checked on 24 October 2026: Coinbase says it does not currently support naming a beneficiary for individual accounts, Kraken says it does not currently offer the option, and Gemini says it does not offer the ability to designate beneficiaries. The account passes under your will, trust or state intestacy law. See how US exchanges handle a death.
What does a US exchange ask an executor for?
Typically a death certificate, a court or probate document showing who may act, that person's photo ID and a signed letter. Coinbase also accepts an affidavit for collection or a small estate affidavit, and Kraken asks for a colour image of the official certificate. Details and links: exchange claims table.
Should I put my seed phrase in my will?
No. A will is read by the court in probate, and probate filings are usually public. Keep the seed in your backup system and use a separate, private letter of instruction to say where things are and who can help, without the secrets themselves.
Can a small estate affidavit avoid probate for crypto?
Sometimes, for exchange accounts in a small estate. Limits are set by each state: California's is $208,850 for deaths on or after 1 April 2025, with a 40-day wait. No affidavit can unlock a hardware wallet without its backup. See small estates.
Which US states have not enacted RUFADAA?
According to the Uniform Law Commission's enactment list (checked 25 October 2026), 49 of the 53 jurisdictions it tracks have enacted it. Delaware (which has its own digital-assets statute), Louisiana, Massachusetts (bills pending in 2026) and Puerto Rico have not. Enacted versions can differ from the model act. See RUFADAA by state.
In Texas or California, does crypto we own jointly pass automatically to my spouse?
Not necessarily. Texas needs a written community property survivorship agreement signed by both spouses; a joint account alone is not enough (Estates Code ch. 112). California needs a transfer document that expressly says "community property with right of survivorship" (Civil Code §682.1), which a self-custody wallet does not have. Ask a local lawyer. See community property.
Does transfer-on-death work for crypto?
Only where a provider offers it. The three major exchanges we checked do not offer beneficiary designations, and self-custody wallets have no provider to register one with. A funded revocable living trust, or a provider with its own inheritance feature, are the usual ways round probate. See transfer-on-death.
When does a US estate need Form 706 and Form 1041?
Form 706 is required when the gross estate plus adjusted taxable gifts exceeds the basic exclusion ($15,000,000 for 2026 deaths) and is also filed to elect portability. Form 1041 reports the estate's or trust's own income and gains, for example coins sold during administration. See Forms 706 and 1041.
Is there a US Travel Rule for crypto withdrawals?
Yes. FinCEN's Funds Travel Rule (31 CFR 1010.410(f)) covers transmittals of $3,000 or more, and FinCEN's 2019 guidance applies it to crypto. A 2020 proposal aimed at transfers to self-custody wallets was withdrawn on 6 October 2026. See custody: UK and USA.
What are an executor's duties when the estate holds crypto?
The IRS describes the core duties as collecting the assets, paying creditors and distributing the rest. For crypto that means securing backups, recovering into an estate wallet rather than a personal one, recording date-of-death values and keeping a log of every transaction. See duties applied to crypto.
Threats, standards and life events Beginner Intermediate
What is a token approval or "permit", and how can it empty my wallet without my seed?
An approval lets an app move a type of token from your wallet; a permit does the same with an off-chain signature, which may be used later. Malicious sites ask for these, and a hardware wallet signs whatever you approve. See approval and permit drainers (MetaMask, ERC-2612).
How do I remove old token approvals?
Can a browser extension steal my recovery phrase?
Yes, if you type the phrase into it. In 2025 researchers found more than 40 fake wallet add-ons on Firefox's store that sent wallet secrets to attackers (Koi Security). Use only the extension your wallet's own site links to. See fake extensions.
What is clipboard malware, and does a hardware wallet stop it?
A "clipper" swaps an address you copied for the attacker's (ESET). A hardware wallet helps only if you compare the full address on its screen with the address you intended. See clipboard malware.
My details were in a company data leak. What should I expect?
Expect convincing emails, calls and even letters that use your real name, address and order history, as happened after the Ledger 2020 and Coinbase 2025 incidents. None of that makes a message genuine. See data leaks.
How do I protect my phone number from a SIM swap?
Use app-based or security-key two-factor authentication instead of text messages, and ask your provider about SIM-change locks. In the US, FCC rules require providers to offer them (Federal Register). See SIM swaps.
What do BIP44, BIP49, BIP84 and BIP86 mean in my wallet settings?
They are address types and paths: legacy (44), nested SegWit (49), native SegWit (84) and Taproot (86). Restoring with the wrong one shows an empty wallet. See the BIP family.
Can one recovery phrase hold coins on several blockchains?
Yes. The path includes a coin-type number from the SLIP-44 registry, so one phrase can control Bitcoin, Ether and others, but only wallets that support each chain will show those coins. See one seed, many chains.
Can I write only the first four letters of each word?
For the English BIP39 list, yes: BIP39 designed it so the first four letters identify each word (BIP39). Write all four, in order. See why the wordlist matters.
What should I do with my backups when I move house?
Carry them yourself, redirect your post, update your inventory and letter of instruction, and move one copy at a time. See the moving house scenario.
My partner has lost capacity. Can I use their power of attorney for their crypto?
A registered lasting power of attorney (UK) or durable power of attorney (US) gives legal authority, but it does not tell you where the backups are. If there is none, a UK court route such as deputyship is needed. See the incapacity scenario (GOV.UK).
Passphrases, Shamir shares and multisig recovery Intermediate Expert
Do capital letters and spaces matter in my passphrase?
Yes. Trezor and COLDCARD both treat passphrases as case-sensitive and count a space as a character; a different passphrase opens a different, usually empty, wallet with no error. Record the wallet's fingerprint so you can tell a typo from an empty wallet. See every character counts.
Can I use accented letters or emoji in a passphrase?
BIP39 allows any Unicode after NFKD normalisation, but COLDCARD and Trezor accept ASCII only, and SLIP-39 requires printable ASCII. A passphrase you cannot type on your heirs' device is a risk; plain ASCII is safest. See Unicode and NFKD.
Will a decoy passphrase wallet protect me if I am threatened?
Only partly. Every passphrase opens a valid wallet, so a coercer cannot prove a decoy is not the real one, but anyone who knows the feature exists can demand more. Treat it as a deterrent, not a plan for your safety. See plausible deniability limits.
How much easier is it to guess my seed if someone finds half the words?
For 24 words split in halves, about 2124 guesses remain instead of 2256; for 12 words split in halves, about 262. A single SLIP-39 share below the threshold reveals nothing. See the numbers.
Which wallets can restore SLIP-39 shares?
From the makers' own documentation on 25 October 2026: Trezor Safe 3, 5 and 7 and Model T, Keystone 3 Pro and OneKey Pro (hardware), and Electrum and Sparrow (software, restore only). We found no SLIP-39 option documented for Ledger or BitBox02. See the support table.
We have two of our three multisig seeds but no descriptor. Can we recover?
Only if you can also find the third key's xpub, because a multisig address commits to every participant's public key. Look for an old coordinator file, a device that registered the wallet or a custody provider's copy. See if the descriptor is lost.
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Last reviewed: · Educational information only — verify current details with official sources.