What are the best and worst ways to keep a seed phrase safe? A seed phrase is the key to unlocking and recovering cryptocurrency. It should be safe and secure.
It might be time to do a security spring clean, especially now that crypto prices are low and crypto tourists have left. Security begins with a seed phrase. Sometimes called a recovery phrase.
It’s clear that Bitcoin and the entire crypto space are under the thumb of a bear market. Do Kwon’s Terra experiment has gone up in flames. A crypto contagion has choked many of the most trusted exchanges. This has caused many self-sovereignty advocates and chant “not your keys. not your coins.”
It seems that every day, another trusted crypto lender freezes customer withdrawals. Many centralized lending platforms, including Vauld, the crypto lender in Singapore, and Zipmex in Thailand, which has 200,000 customers, have experienced similar fates. This will ensure that customers are not left with heartbreaking consequences in 2022.
These situations are timely reminders that one should look after their keys and keep them safe. While crypto prices are low, trust in central exchanges (places that claim they can look after crypto) is also at an all-time low, it’s never been a better time to ensure the safety of crypto assets.
Seed phrases can save lives
A seed phrase (sometimes called a private keys) is a list consisting of 12 to 24 words that form a mnemonic phrase. These keys can be used to send funds or sign them.
A seed phrase, when taken care of properly, can save lives. This is what Alex Gladstein, chief strategy officer at Human Rights Foundation and human rights activist, frequently states. If a burglar takes a hardware wallet, but not the seed phrase it isn’t a major problem — the seed phrase can still be used with a new wallet. The 12 to 24 words can be used to access Bitcoin (BTC), or other crypto funds, anywhere in the world if you are forced to flee by a government or another bad actor.
Goldbug and Bitcoin skeptic Peter Schiff both once misunderstood his seed phrase, confusing the two for his pin code. This is the first mistake you should avoid. Here are other reasons not to store a seed phrase.
The first prize goes to the couple who have the Bitfinex billions of Bitcoin. They stored their seed phrase on a cloud storage account. Cointelegraph reported that Heather Morgan, a cybercriminal, and Ilya Lichtenstein (a cybersecurity specialist husband), stored their seed phrase in a cloud storage account. The FBI had to only crack the iCloud password of the couple to access over $4 billion worth of BTC at the time they reported. This is why it is important to never store your seed phrase online. This includes your Evernote notes in draft emails or low engagement tweets.
Some posts receive very little engagement. It’s the best spot to keep my seed phrase. Sun. Match. Hope. Air. Rocket. Clock. Finger. Mat. Bath. Grass. Lights. Congress.
Karma is hibernating (@Karma_Zeus July 17, 2022
Cointelegraph also reported that one should never enter a seed phrase in a phone. Why? Redditor explains that smartphone text prediction can actually predict a seed phrase. While text prediction can be useful for tricky spellings or emojis at times, it is counterproductive when protecting personal wealth.
A fridge is not the best place to store cryptocurrencies, even though it sounds appropriate. Bitcoin enthusiasts replied “Fridge” to the question, “Where is the strangest place to store a seed sentence?” Without explaining whether the seed phrase should go inside or on top. It turned out that a fan of nonfungible tokens (NFTs) had previously stored a seed sentence on the fridge.
Best way to store seed phrase https://t.co/9k0nHFNjeK pic.twitter.com/MpcRvwGc2m
— LazyTec (@LazyTec) July 15, 2022
Kristina Lucrezia corner, Cointelegraph’s editor in chief, says that bad memories are the worst place to store a seed phrase. A seed phrase should not be stored in bad memory, as it is not like dates of historical battles, car keys, or names of friends from passages of time.
I’m guessing the one I don’t remember.
— Kristina Lucrezia Corner (@KristinaLCorner) July 21, 2022
One of the most creative and memory-exhaustive ways to remember “pages, lines, words from favourite books” is one way. For Bitcoiners this means that they will store the seed phrase on pages 100 through 112 of a Harry Potter book. It is impossible to guess which of the eight Harry Potter books will be your favorite. There are many clever ways to remember a seed phrase. MTC, a Bitcoin educator, devised a method to remember a seed phrase in 10 seconds using patterns.
It’s safe to play it safe
What do experts think about seed phrases? Chris Brooks, the founder of Crypto Asset Recovery, a cryptocurrency recovery company, said to Cointelegraph that human error can lead to wealth destruction. It is better to be concerned about leaving your seed phrase or private key in paper wallets that could be misplaced or thrown away than hackers and scammers. Brooks explained:
“You have a greater chance of moving into a new apartment and losing the crypto password than you do of being hacked.”
Crypto Asset Recovery was a seasonal business run by the Brooks family. In every bull market like 2017 and 2021, crypto enthusiasts call upon the crackers when they have lost their seed phrases or forgotten their passwords. They told Cointelegraph that they received up to 150 calls per day at one time in 2021. The most important piece of advice they have for managing seed phrases was to keep it simple.
“So, generally speaking, our security tips for are quite basic. Buy a $30 safe from Amazon. Or, you can build a small wooden box that is easily identifiable and used for secure documents. You can also store your seed phrases in there.
It is a good idea to put any important items in that box. This way, when spring cleaning is done or you move houses, it won’t be thrown out. You won’t shred the paper or anything like that.
Related: DeFi, NFT and Crypto Hacks Abound — How to Double Up on Your Wallet Security
It’s also crypto so those who are more physical may feel more inspired to keep their seed phrases in more imaginative storage boxes. Onthebrinkie, a Bitcoin advocate, 3D printed an adult doll suitable for OpenDime. This toy can be used to either store a seed phrase or a USB key for Bitcoin. It’s possible for an intruder to steal the wooden box containing important documents. But no one would ever steal a sexy toy.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.