Preventing loss of ada

Keeping your ada safe is a top priority when using Daedalus wallet. Loss of access to ada in your wallet as well as the chance of unauthorized transfer from your wallet (theft/hacking) can be reduced if you follow these guidelines. 

Before we get to that though:

1. You should be aware that by using ada there is a risk of theft/hacking and people do report instances of theft/hacking to us.
2. It's your responsibility to become informed about the risks around using ada, and stay up to date on those risks.
3. IOHK is not able to return your ada, we do not hold them, you do, and only you can control them, no one else including IOHK has control of your ada. 

Find out how to stay safe online and how to report inappropriate activity in the Cardano community: Tips for Staying Safe Online

Which Wallet?

Sometimes people ask which wallet is the safest. All wallets have risks associated with them; it's good to know what the risks are so that you know what to be careful about when using each wallet. 

In general, though, funds should NEVER be stored at/on an exchange. Exchanges should be utilized only for transferring or trading funds; when at rest, all funds should be stored in a local wallet.  For short-term storage, funds should be stored in a wallet app like Daedalus wallet or Yoroi wallet. For long-term storage, funds should be stored in a hardware wallet or a paper wallet. Both Daedalus and Yoroi have hardware wallet support.

 

See also Daedalus wallet compared to Yoroi wallet 

See also A Simple Explanation of Hardware Wallets and How they Work (external link to Cardano Forum)

 

Daedalus wallet application

Never download Daedalus from non-official, untrusted sources. Scammers may create fake copies of Daedalus and attempt to trick you into downloading the wallet from a different source. If you download Daedalus from an unofficial source, you put your ada at serious risk of being stolen.

Always be sure to keep your Daedalus wallet recovery phrase safe and confidential. 

For example: 

• Use a password for your computer and your user account to avoid unauthorized access
• Lock your computer when not in use to avoid unauthorized access
• Be careful about downloading and using software to avoid hacking
• Have an antivirus software and perform frequent scans on your system
• Be careful about clicking on links/pictures with links in emails to avoid hacking
• Do not keep a record of your Daedalus wallet recovery phrase on your machine 
• Back up your secret folder outside of your machine in case your machine is broken or stolen.

You can check your Daedalus wallet recovery phrase to see if it is valid.

Import Wallets by Using Secret Folders 

The wallet import feature is reenabled in Daedalus. This feature enables you to import wallets from ‘secret.key’ files of old versions of Daedalus (Daedalus version 0.15.1 and earlier.) 

For testing this option you must have your old Daedalus application installed, or a backup of the state directory from the old Daedalus. If you still have it on your computer - please do not remove it. 

You can download the latest version of Daedalus Mainnet here.

For details on how to import a wallet in Daedalus, please see Importing wallets. If your wallet was protected with a spending password on the old version, you need to use the same spending password to be able to create transactions from this wallet.

After successfully importing a wallet, please create a new wallet and transfer all funds from the old wallet to the new wallet. Please also remember to keep the wallet recovery phrase for your new wallet in a safe and secure location.

*Please note, importing wallets from state directories of Daedalus 1.0 onwards is not supported by this method, this is done automatically by Daedalus provided the wallets are on the same state directory.

Safeguards for Inter-network Transactions

Note that we have implemented some safeguards to prevent accidental loss of ada due to the use of incorrect addresses. If you try to use a testnet address on mainnet your transaction will fail. Similarly, if you try to use a mainnet address in a Testnet Daedalus wallet the transaction will fail. 

Daedalus paper wallet

The Daedalus paper wallet is very sensitive and should be kept in a safe and secure location.

For example: 

• Keep it physically secure in order to avoid theft
• Make sure the information on it is not visible to others to avoid theft

Yoroi Wallet

Yoroi is a browser extension that is published by Emurgo, an organization affiliated with IOHK. In some ways, Yoroi is easier to use than Daedalus Wallet since it is not as resource intensive. 

Using a hardware wallet is similar to using a paper wallet, in that it can allow you to store your ada offline. Generally, this is much safer than keeping your ada online. 

See the Yoroi website for more information

For more information on security best practices, please refer to our Cybersecurity guidelines for Cardano users.