The most significant feature of cryptocurrency is that "the key is the right of ownership." Anyone who has the unique key (or mnemonic phrase, keystore file) corresponding to the address can obtain control of all assets in the address.
Different people have different values for asset custody. Some users choose to entrust their assets to a trusted centralized institution for security or convenience, and transfer management rights to others; other users choose to keep their assets by themselves, using paper wallets, hardware wallets, and multi-signature management to avoid possible malicious acts or accidents by centralized institutions.
It is difficult for us to say which method is better, but for users who manage their own keys, complete decentralization means complete self-responsibility. If good wallet usage habits are not established or there are no effective remedial measures, the assets in the address will always be at risk.
Decentralized wallet forgot password
If you forget your password and cannot operate your assets due to using various decentralized wallets, such as imToken, Kushen, TrustWallet, TokenPocket, Bitcoin Core, etc.
Forgot the password for the Keystore file
I backed up the Keystore, but forgot the recovery password, which made it impossible to operate assets.
The mnemonic (or seed password) was recorded incorrectly
This includes the disordered order of the recorded mnemonics, the errors in copying words or numbers, the missing of some words or numbers, the forgotten password (or payment password), etc.
All other issues related to digital assets
Asset recovery is a battle with mathematics, time, cost, and human behavior, and like any battle, tactics are constantly evolving. For cryptocurrency wallets, there is no absolutely secure way to store keys, nor is there an unchanging asset recovery solution. The most important thing is that users themselves need to establish a sound risk control awareness and clear self-awareness.