Introduction
To better answer this question, I suggest you watch this quick informative video about Cryptocurrency Wallets:
Source: https://www.binance.vision/blockchain/crypto-wallet-types-explained
The video clearly explains the following concepts about a cryptocurrency wallet:
- Funds are not stored on the wallet. The coins/tokens are just being passed along addresses.
- The wallet is just a gateway to the blockchain.
- Your Private key gives access to the wallets and used to sign new transactions.
- Even if you lose access to your device, you can still use your Private key on any other device.
What is a Private Key?
For every Public address, there is always a Private Key that is paired to it. These private keys gives you full control over the public address, meaning you can send crypto or sign transactions with it. If you have the private key then you basically have ownership of the specific address. And that is why, it is the single most important thing you have to keep safe if you are handling your own funds.
What is a Recovery Phrase?
Trust Wallet uses an industry standard for protecting your Private Keys. We are utilizing a 12-word Recovery Phrase for better security and convenience of managing multiple assets. The private key for every coin and token that is supported by the wallet is derived from this Recovery Phrase. As soon as you start creating a wallet, you will be presented by the 12-word Recovery Phrase. So make sure to backup as this will be helpful if you need to restore your wallet.
Is my Funds Secure?
Yes, Trust Wallet is using an industry standard to encrypt your wallet and secure the recovery phrase.
Learn more here: Am I in Control of My Private Keys?
And for better security, familiarize yourself with the 3 Steps to Protect your Crypto Wallet.
Conclusion
Going back to the original question, what happens if Trust Wallet closes or stops working?
Besides that being unlikely to happen, I can assure you that you can still manage your funds.
Here are some things you can do:
- Send your funds to other wallets or exchanges before the service completely goes down.
- Cash out your crypto.
- Derive your Private Keys and Export them to a different software wallet.