Skip to main content

Wallet Recovery: Step-by-Step Guide

At some point, almost every cryptocurrency holder will need to recover a wallet — whether due to a lost device, a forgotten password, a software malfunction, or a deliberate migration to new hardware. The recovery process ranges from straightforward (restoring from a seed phrase on a new device) to extremely complex (recovering from partial information or unusual configurations). Understanding recovery procedures before you need them is essential, because the middle of an emergency is the worst time to learn.

This guide covers every common recovery scenario, provides step-by-step instructions, and addresses edge cases that can confuse even experienced users.

Understanding Wallet Recovery Fundamentals​

What Recovery Actually Means​

When you "recover" a cryptocurrency wallet, you are not retrieving data from a broken device. Your cryptocurrency exists on the blockchain — a globally distributed ledger. Recovery means regenerating the private keys that control your blockchain addresses by providing the master secret (your seed phrase) to a new wallet application or device.

The new wallet uses your seed phrase to:

  1. Derive the master private key
  2. Generate child keys for each supported cryptocurrency and account
  3. Derive the corresponding public addresses
  4. Scan the blockchain for any funds associated with those addresses

After recovery, the new wallet functions identically to the original. All the same addresses, keys, and funds are accessible.

Why Seed Phrases Work Across Wallets​

The BIP-39 standard defines a universal word list and process for generating seed phrases. The BIP-32 and BIP-44 standards define how to derive specific cryptocurrency keys from the master seed. Because these are open standards, any wallet that implements them can recover from any other wallet's seed phrase.

This means:

  • A Ledger seed phrase can be restored on a Trezor
  • A MetaMask seed phrase can be restored on a Trust Wallet
  • A Trezor seed phrase can be restored on Electrum
  • Any BIP-39 seed phrase works on any BIP-39 compatible wallet

However, there are important caveats around derivation paths, passphrases, and non-standard implementations that we cover below.

Scenario 1: Lost or Broken Hardware Wallet​

This is the most common recovery scenario. Your hardware wallet is lost, stolen, or physically damaged.

Recovery Steps​

Step 1: Obtain a new wallet device. It can be the same brand or a different brand — any BIP-39 compatible device works.

Step 2: Initialize the new device and select "Restore from recovery phrase" (not "Create new wallet").

Step 3: Enter your seed phrase word by word using the device's input mechanism:

  • Ledger: Navigate letters with buttons, select each word
  • Trezor: Enter on the device screen (Safe 3/5) or via the randomized keyboard
  • Software wallet: Type the words in order

Step 4: Set a new PIN for the device.

Step 5: The wallet derives your accounts and scans for balances.

Step 6: Verify your addresses and balances match expectations.

If Your Device Was Stolen​

If your hardware wallet was stolen (not just lost), treat this as a potential compromise:

  1. Recover your wallet on a new device immediately
  2. Verify your funds are still present
  3. Generate a NEW seed phrase on a new device
  4. Transfer ALL funds from the recovered wallet to the new wallet's addresses
  5. The stolen device's seed phrase is now considered compromised — even with PIN protection, assume the attacker may eventually access the keys
  6. Secure the new seed phrase with proper backup procedures

If Your Device Was Stolen AND Your Seed Phrase Backup Was Compromised​

If both your device and seed phrase were in the same location and both were taken:

Act immediately:

  1. Use any remaining access (if you have the seed phrase memorized, or a second backup elsewhere)
  2. Restore on any available wallet (even a software wallet on your phone)
  3. Transfer funds to a completely new wallet immediately
  4. This is a race against the thief who may be attempting the same recovery

If you have no remaining access to the seed phrase:

  • The funds are lost. There is no recovery possible without the seed phrase.
  • This scenario illustrates why backups should be stored in separate locations from the device.

Scenario 2: Recovering a Software Wallet​

Mobile Wallet Recovery (Lost/Broken Phone)​

  1. Install the same wallet app on your new phone (or a compatible alternative)
  2. Select "Restore" or "Import wallet"
  3. Enter your seed phrase
  4. Set a new password/PIN
  5. Your accounts and balances should appear

If balances do not appear:

  • Switch networks (your tokens may be on Polygon, Arbitrum, etc., not just Ethereum mainnet)
  • Re-add custom tokens using their contract addresses
  • Check that you are using the correct derivation path (see "Derivation Path Issues" below)

MetaMask Recovery​

  1. Install MetaMask on your browser or phone
  2. Select "Import using Secret Recovery Phrase"
  3. Enter your 12-word recovery phrase
  4. Set a new password
  5. Your primary account (Account 1) will be restored automatically

Recovering additional accounts:

  • MetaMask only auto-restores Account 1
  • Click "Add Account" to regenerate Account 2, Account 3, etc.
  • Each click generates the next sequential account in the HD derivation

Recovering tokens and networks:

  • Add custom networks (Polygon, Arbitrum, etc.) via ChainList
  • Re-add custom tokens using their contract addresses
  • Activity history is stored locally and will not be recovered (check block explorer instead)

Desktop Wallet Recovery​

  1. Install the wallet software on your computer
  2. Select the recovery/import option
  3. Enter your seed phrase
  4. Configure settings (network, derivation path)
  5. Allow the wallet to scan the blockchain for your transactions

Scenario 3: Forgotten Wallet Password​

What to Do​

The wallet password (or device PIN) encrypts the wallet data on your specific device. It is NOT the seed phrase.

If you know your seed phrase:

  1. Reset or reinstall the wallet
  2. Restore from your seed phrase
  3. Set a new password
  4. Full access is restored

If you do not know your seed phrase:

  • For software wallets: The encrypted wallet file may be accessible. Some wallets have tools or scripts to attempt password recovery through brute force. This is difficult and time-consuming.
  • For hardware wallets: After a certain number of wrong PIN attempts (typically 3-16), the device wipes itself. If you have the seed phrase, this is fine — restore on a new device. If you do not have the seed phrase, the funds may be permanently lost.

Scenario 4: Derivation Path Issues​

What Are Derivation Paths?​

Derivation paths are the specific instructions for generating addresses from a seed phrase. Different wallet software may use different paths, resulting in different addresses from the same seed.

Common Bitcoin derivation paths:

PathTypeAddress FormatWallets
m/44'/0'/0'Legacy1...Older wallets
m/49'/0'/0'SegWit (wrapped)3...Most wallets (2017-2020)
m/84'/0'/0'Native SegWitbc1q...Modern wallets (recommended)
m/86'/0'/0'Taprootbc1p...Newest wallets

Common Ethereum derivation paths:

PathUsed By
m/44'/60'/0'/0MetaMask, most wallets
m/44'/60'/0'Ledger Live (legacy)
m/44'/60'Some older wallets

Recovery When Addresses Do Not Match​

If you restore your seed phrase but do not see expected balances, the most likely cause is a derivation path mismatch.

Steps to resolve:

  1. Identify what wallet software you originally used
  2. Research that wallet's derivation path
  3. In your recovery wallet, manually set the derivation path to match
  4. Some wallets (Electrum, Sparrow) allow you to specify custom derivation paths during recovery

Tools for discovery:

  • SafeSeed's Key Derivation Tool can show addresses for multiple derivation paths from the same seed phrase
  • Sparrow Wallet's discovery feature scans multiple path types automatically
  • Ian Coleman's BIP39 tool (use offline only) allows path exploration
SafeSeed Tool

If you are having trouble finding your funds after recovery, use SafeSeed's Key Derivation Tool to generate addresses for multiple derivation paths. Compare the generated addresses with your known receiving addresses (from exchange withdrawal history, block explorer, etc.) to identify the correct path.

Scenario 5: Passphrase (25th Word) Recovery​

The Passphrase Challenge​

If your original wallet used a passphrase (optional 25th word), you MUST enter the same passphrase during recovery. The seed phrase alone will recover a valid but different set of accounts — the "standard" accounts without passphrase protection.

Recovering with a passphrase:

  1. Restore your wallet using the 24-word seed phrase
  2. Enable passphrase mode in the wallet settings
  3. Enter the exact passphrase (case-sensitive, space-sensitive)
  4. The passphrase-protected accounts should appear

If you forgot your passphrase:

  • There is no recovery mechanism for a forgotten passphrase
  • The funds in passphrase-protected accounts are permanently inaccessible without the passphrase
  • The seed phrase alone opens only the non-passphrase accounts (which may have a small balance or be empty)
  • If you remember part of the passphrase, specialized recovery services may be able to brute-force the remaining characters (expensive and not guaranteed)

Scenario 6: Partial Seed Phrase Recovery​

Missing 1-2 Words​

If you have most of your seed phrase but are missing one or two words, recovery may be possible:

Missing 1 word: Since the last word of a BIP-39 seed phrase includes a checksum, there are only a limited number of valid last words for any given set of preceding words. Software tools can iterate through all 2,048 possible words and test each as a valid checksum. With one word missing, recovery is usually feasible.

Missing 2 words: Recovery becomes computationally harder but still possible (2,048 x 2,048 = ~4.2 million combinations). Specialized recovery tools can test all combinations, though it may take hours.

Missing 3+ words: Recovery becomes exponentially harder. With 3 missing words, there are ~8.6 billion combinations. This is still theoretically possible with significant computing resources but may take days to weeks.

Known Words in Wrong Order​

If you have all the words but are unsure of the order, the number of possible orderings grows factorially. However, the BIP-39 checksum significantly reduces the valid combinations. Tools exist that can test all permutations and identify valid checksums.

Specialized Recovery Services​

For partial recovery scenarios:

  • BTCRecover: Open-source tool for seed phrase and password recovery
  • Professional recovery services: Companies specializing in cryptocurrency recovery (expensive, verify reputation)
  • Dave Bitcoin / Wallet Recovery Services: Established recovery service with a track record

Warning: Never share your complete (or partial) seed phrase with untrusted recovery services. A legitimate service will work on your machine or allow you to verify their process. Scam recovery services will steal whatever funds they can access.

Scenario 7: Wrong Network Recovery​

Tokens Sent to the Wrong Network​

A common issue: you sent tokens to the correct address but on the wrong network.

Example: You sent USDC on the Polygon network, but your wallet was configured for Ethereum mainnet.

Recovery:

  1. The tokens are at the correct address, just on a different network
  2. Switch your wallet to the correct network (Polygon in this example)
  3. Your balance should appear
  4. If using MetaMask: add the network via ChainList, then add the USDC token contract for that network

Why this works: EVM-compatible chains (Ethereum, Polygon, Arbitrum, BSC, etc.) all use the same address format and derivation. Your address on Ethereum is the same address on Polygon, controlled by the same private key.

Exceptions: Non-EVM chains have completely different address formats and cannot receive funds intended for other chains. If you send Bitcoin to an Ethereum address, the Bitcoin is lost (and vice versa).

Scenario 8: Recovering from Exchange/Custodial Issues​

Exchange Account Recovery​

If you lose access to a custodial exchange account:

  1. Use the exchange's password reset process (email verification)
  2. Contact customer support with identity verification
  3. Provide KYC documents if requested
  4. Be patient — exchange account recovery can take days to weeks

Exchange Closure/Insolvency​

If an exchange becomes insolvent (like FTX):

  1. Do not panic — monitor official communications
  2. File a claim through the bankruptcy proceedings
  3. Recovery depends on the exchange's remaining assets
  4. This process can take months or years
  5. This is the primary risk of custodial wallets

Prevention: Move funds off exchanges to your own non-custodial wallet. See our Custodial vs Non-Custodial Guide.

Scenario 9: Stuck or Failed Transactions​

Bitcoin Stuck Transaction​

If a Bitcoin transaction is stuck (unconfirmed for hours/days due to low fees):

Option 1: Replace-By-Fee (RBF) If the original transaction was flagged as replaceable (most wallets do this by default):

  1. Create a new transaction with the same inputs but a higher fee
  2. The network will accept the higher-fee version and discard the original

Option 2: Child Pays for Parent (CPFP) Create a new transaction that spends the unconfirmed output with a high enough fee to incentivize miners to confirm both the parent and child transaction.

Ethereum Stuck Transaction​

If an Ethereum transaction is stuck (pending with low gas):

  1. In your wallet, find the pending transaction's nonce
  2. Create a new transaction with the same nonce but higher gas price
  3. Send this new transaction to yourself (0 value, same nonce) to "cancel" the original
  4. Or resend the original transaction data with higher gas to "speed up"

MetaMask provides "Speed Up" and "Cancel" buttons directly on pending transactions.

Recovery Best Practices​

Before You Need Recovery​

  1. Test your backup — restore on a spare device to verify your seed phrase works
  2. Document your setup — write down which wallet software, derivation paths, and networks you use (do not include the seed phrase in this documentation)
  3. Keep backups current — if you add accounts, update your documentation
  4. Store backups securely — see our Wallet Backup Guide

During Recovery​

  1. Stay calm — most recovery scenarios are straightforward with a valid seed phrase
  2. Verify the recovery environment — ensure the device/software you are recovering into is legitimate and not compromised
  3. Do not enter your seed phrase on any website — no legitimate recovery process requires entering a seed phrase into a web browser
  4. Work systematically — try the most likely derivation paths and configurations first
  5. Keep records — note what you have tried so you do not repeat failed approaches

After Recovery​

  1. Verify all balances across all networks and accounts
  2. Consider generating new keys — if the recovery was due to a security incident, transfer to a new wallet with a new seed phrase
  3. Update your backup strategy — address whatever gap caused the need for recovery
  4. Document lessons learned — update your recovery instructions based on the experience

FAQ​

Can I recover my wallet without the seed phrase?​

In almost all cases, no. The seed phrase is the only master backup for a non-custodial wallet. Without it, and without an active device with the wallet still functional, the funds are permanently inaccessible. For custodial wallets (exchanges), account recovery through customer support is possible.

How long does wallet recovery take?​

The technical process of entering a seed phrase and restoring a wallet takes 5-15 minutes. Blockchain scanning for balances may take additional minutes. However, if there are complications (wrong derivation path, missing passphrase, partial seed phrase), resolution can take hours to days.

Is it safe to enter my seed phrase on a new device?​

Yes, provided the new device is legitimate and not compromised. For hardware wallets, ensure you purchased from an official source. For software wallets, download from the official website and verify the installer checksum. Enter the seed phrase only on the wallet device/app, never on a website.

What if I restored my wallet but the balance shows zero?​

This usually means one of: wrong derivation path (try different path settings), wrong network (switch to other chains), passphrase mismatch (enter the correct passphrase), or additional accounts needed (click "Add Account" to generate beyond Account 1). See the derivation path section above for troubleshooting.

Can someone else recover my wallet if they find my seed phrase?​

Yes. Anyone with your seed phrase can fully recover your wallet and access all funds. This is why seed phrase security is paramount. If you believe your seed phrase has been compromised, transfer all funds to a new wallet with a new seed phrase immediately.

Are recovery services legitimate?​

Some are, but many are scams. Legitimate recovery services:

  • Work on your device or provide auditable, open-source tools
  • Have established reputations and verifiable track records
  • Never ask you to send them your seed phrase electronically
  • Charge based on recovery success, not upfront
  • Can explain their methodology

Scam recovery services:

  • Contact you unsolicited (especially on social media or after you post about lost crypto)
  • Ask for your seed phrase or private key
  • Request upfront payment
  • Guarantee recovery (no service can guarantee results)

Can I recover cryptocurrency sent to the wrong address?​

If you sent cryptocurrency to a valid address that you do not control, recovery is virtually impossible. Blockchain transactions are irreversible by design. If the recipient is known (e.g., an exchange), you can contact their support. If the address is unknown, the funds are lost. If you sent to an address that does not exist (invalid format), the wallet should have prevented the transaction from being sent.

What happens to my staking rewards during recovery?​

Your staking position exists on the blockchain, not on your device. When you recover your wallet, your staking position and any accumulated rewards should be visible. However, some staking protocols require active management (claiming rewards, restaking), so check your positions after recovery.