what-will-happen-to-people-s-funds-if-wallet-stops-functioning
Some important info
For reference, this article is referring to hot storage wallets.
A. Users need to understand that hot storage wallets only serve as a gateway to blockchain which means funds are not stored on the wallet but the user's address on the blockchain network.
B. Your private keys are used for signing in to your wallets and used for validating transactions.
C. With your private keys you can still have access to your wallet's fund from other wallet's devices. (Exporting of private keys to other wallets)
With the above fundamental noted the probability of losing funds when a wallet closes is likely very hard since you have full control over your private keys there are chances of recovering funds or moving them to another wallet in case any problem may occur.
Alternatives
If any problem may arise users can quickly withdraw funds to an alternative exchange platform.
With your private keys derived you can export your software wallets to other devices.
Impact on the crypto ecosystem
This will have a big negative impact on the crypto space; most crypto users use the cold storage wallet to secure their assets with these millions of users globally and if such a scenario happens millions of dollars will be lost or locked out.
blockchain security will lose users' credibility and trust; there will be less trust from users which can lead to the withdrawal of funds from other relative wallets due to fear.
Conclusion
If you are a crypto enthusiast these questions might have crossed your mind what will probably happen if some wallet stops functioning I hope with these articles you would have a glimpse of what will happen to your funds, they are safe and secure as long as your private keys are safely kept with you.
Note Not your keys, not your wallet keeping all your wallet secure from physical and online threats will depend on how you choose to safeguard your private security keys.
Make a backup of your keys if possible they should always be kept offline.
You can do your research and add up some suggestions in the comment section it will be of help to someone.
This question was asked by @gbenga one of @project.hope core supporting members.
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