A method of creating and recovering digital wallet is implemented using a storage device and a connected device that are connected to each other. The storage device has a private key stored thereon for confirming a digital asset transaction, and includes an information conveying unit, an operation interface, a processor and a security element. The method includes following steps: a user uses the connected device to generate and transmit a digital wallet creating request to the security element via the processor; the security element verifies there is not any digital wallet stored thereon and accordingly creates a digital wallet; the processor requests a recovery mnemonic from the security element and provides the same via the information conveying unit for the user to back it up; and the connected device obtains and decodes an encoded asset message stored in the digital wallet to create a piece of public digital wallet information.