This guide explains how to regain access to your funds using the recovery words stored on your Steelwallet.
Recovery is a sensitive operation.
If performed incorrectly, funds can be permanently exposed or a different wallet may be created.
Read the entire guide once before starting.
What recovery actually does
Your coins are not stored inside the hardware wallet.
The recovery words recreate the private keys that control your funds.
The hardware wallet only holds those keys securely.
The Steelwallet is therefore the real backup — the device itself is replaceable.
When you should use your Steelwallet
Only use the Steelwallet if you permanently lost access to your wallet device.
Typical situations:
- Hardware wallet lost
- Device destroyed
- Device reset
- Migration to a new hardware wallet
Do not use the Steelwallet for:
- Forgotten device password
- App connection problems
- Firmware or update issues
- Temporary errors
If the wallet still works, do not perform recovery.
Important
The Steelwallet is a disaster-recovery tool.
Using it unnecessarily increases the risk of exposing your funds.
Prepare your environment before starting
Before entering recovery words, confirm:
- You are alone in the room
- No cameras are recording the device
- No screen sharing or remote support session is active
- You are not on a phone call where someone guides you
- You have enough time and will not rush
Optional but recommended:
- Close curtains
- Disconnect smart speakers and unused electronics
- Silence notifications
Security rule
Support staff will never ask for your recovery words.
Anyone requesting them is attempting to steal your funds.
Understand the risk
Your recovery words give full control over your funds.
- During recovery, the words leave secure storage and are temporarily exposed.
- Common dangerous mistakes:
- Typing recovery words on a computer
- Entering them into a website
- Importing into a mobile wallet
- Letting someone “help” remotely
Critical rule
Only enter recovery words directly on a trusted hardware wallet device.
If the words are ever typed on an internet-connected device, the wallet must be considered compromised.
What you need
- A new or reset hardware wallet
- Your Steelwallet plates
- A private environment
Confirm your backup is complete
Before starting recovery, verify whether your wallet used an additional passphrase.
A passphrase is sometimes remembered as:
- an extra password after unlocking the device
- a hidden wallet
- a balance that only appeared after typing an additional word or sentence
If this applied to your wallet:
- The Steelwallet contains only the recovery words
- The passphrase is not stored on the Steelwallet
- The recovery words alone restore only the default wallet
After restoring, you must enable the passphrase feature again and enter the exact same passphrase to access the correct wallet:
How to use and manage the BitBox02 optional passphrase
If you do not enter the passphrase, the wallet will appear empty even though the recovery was successful.
Using a BitBox02? Follow the dedicated guide
If you are restoring on a BitBox02 device, use our step-by-step device instructions:
How to restore your wallet from recovery words (seed)
The remaining steps in this article describe the general recovery principles and safety rules.
Using a different hardware wallet brand?
Each hardware wallet has its own interface and recovery flow.
Look up a recovery guide from the manufacturer of your device and use this article as the security reference while performing the recovery.
Always restore using the device itself — never on a computer or website.
Step 1 — Start recovery mode on the hardware wallet
Follow the device setup until asked:
- Create new wallet or restore existing wallet
- Choose restore existing wallet.
Step 2 — Enter the recovery words
Read the words from the Steelwallet and enter them directly on the hardware wallet.
Enter them:
- In the exact order
- Without guessing
- Without skipping
Never type the words on your computer keyboard
The hardware wallet input method exists specifically to prevent malware interception.
Step 3 — Verify the restored wallet
After completion, the wallet is recreated deterministically from the recovery words.
Verify carefully before sending funds:
- Balance appears after synchronization
- Transaction history loads completely
- Compare at least one receiving address you previously used
Step 4 — After recovery (security decision)
Choose the correct action:
If recovery was caused by hardware failure
You may continue using the wallet normally.
If recovery words might have been exposed
- Create a new wallet
- Transfer funds to the new wallet
- Create a new backup
- Destroy the old backup
This removes risk from a compromised backup.
If the recovery appears to fail
An empty balance does not necessarily mean the recovery failed.
Most cases are caused by opening a different wallet than the original one.
Common causes:
- Passphrase not enabled or entered differently
- Default wallet opened instead of passphrase wallet
- Incorrect word order
- Incorrect markings on the Steelwallet
- Mixing plates from different backups (24-word backup)
Important
Every passphrase deterministically creates its own valid wallet.
Even a single different character results in a completely different wallet — which will appear empty although the recovery itself was technically performed correctly.
FAQ
Why do I only see four letters per word on the Steelwallet?
Bitcoin wallets follow the BIP39 standard list of 2048 words.
Every word in this list is uniquely identifiable by its first four letters.
Because of this:
- Four letters always map to exactly one word
- The hardware wallet reconstructs the full word automatically
- The full recovery phrase remains correct
This is a property of the standard — not a shortening of your backup.
Can I restore into a software wallet?
You technically can, but it is unsafe.
Entering recovery words into a computer or phone exposes them to:
- Malware
- Clipboard logging
- Cloud backups
- Hidden remote access
Restore into a hardware wallet whenever possible. Only restore into a software wallet if you are immediately moving all funds afterward. For a deeper explanation of the associated risks, see our threat model: BitBox02 threat model.
What if someone saw my Steelwallet?
Assume the wallet is compromised.
You should:
- Restore the wallet
- Create a new wallet
- Transfer funds
- Destroy the old backup
Bitcoin transactions cannot be reversed.
Why is my wallet empty after restoring?
In most cases, the wallet used a passphrase.
Your Steelwallet only stores the recovery words.
To access the correct wallet:
- Enable the passphrase feature on the device
- Enter the exact same passphrase
The recovery was successful — you are viewing the default wallet instead of the passphrase wallet.
Can BitBox recover my funds without the Steelwallet?
No.
The wallet is non-custodial — the recovery words are the only method to recreate access.
Without them, the funds are permanently inaccessible.