Definition ∞ Recovery planning in digital assets involves preparing strategies and procedures to regain access to or restore lost cryptocurrency holdings. This includes establishing secure backup methods for private keys, seed phrases, or wallet access credentials, as well as outlining steps for disaster recovery in case of hardware failure, theft, or unforeseen events. Effective planning mitigates the permanent loss of digital assets, which are often irrecoverable without proper foresight. It is a critical component of responsible digital asset management.
Context ∞ News often emphasizes the importance of robust recovery planning following reports of lost funds, forgotten passwords, or compromised wallets in the crypto space. Discussions highlight various methods, from multisignature solutions to social recovery schemes, each with its own security and usability considerations. The ongoing challenge is educating users on best practices for self-custody and minimizing the risk of irreversible asset loss.
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