Preventing loss of ada

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Keeping your ada safe is a top priority for most people 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 going to return your ada, we do not have 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.

1. Tips for Staying Safe Online
2. Cardano Wiki - Scam Alerts (not an IOHK web site)

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. Currently, Daedalus wallet does not have hardware wallet support, but Yoroi does.  

 

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

Keep your 12-word Daedalus wallet recovery phrase as well as your secret folder 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
• Be careful about clicking on links/pictures with links in emails to avoid hacking
• Do not keep a record of your 12-word 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 12-word Daedalus wallet recovery phrase to see if it is valid.

Import Wallets by Using Secret Folders 

Many people contact the IOHK Technical Support Desk asking what to do if they have lost their 12-word Daedalus wallet recovery phrase. Since Daedalus 1.0.0, users are able to restore their tokens by importing secret.key file or state directory from earlier Daedalus folders. But at the same time, you need to make sure that you are the only person who can access your secret folders so your funds won't be transferred away by someone else in the same way you find your tokens back. You may also need to back up your secret folders of the previous Daedalus folder outside of your machine in case your machine is broken or stolen.

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. 

See also An Error Occurred

Daedalus paper wallet

The Daedalus paper wallet is a bit like the key to your car or cash only more sensitive.

For example: 

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

See Create a paper wallet for more on Daedalus paper wallets

Yoroi Wallet

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

One important feature of Yoroi is that it is now capable of integrating with hardware wallets. 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 web site for more information