How to store your seed phrase securely
Restoring access to a non-custodial wallet and its assets is possible only with the help of a seed phrase. It is also called a mnemonic phrase. It is a group of at least 12 random words that must be written down in a certain order.
Why is the seed phrase so important?
A person who owns the seed phrase is the real owner of the assets in the wallet. This phrase is created simultaneously with the wallet as a recovery tool. If you lose the password to your wallet, you can recover the access only with the help of the seed phrase. If the seed phrase is lost or forgotten, you lose access to the assets forever. You should always remember that.
What should you do with the seed phrase?
You should store it securely! Do not rely on your memory. After a certain period, any irrelevant information is forgotten. The brain is arranged in such a way as to remember only relevant data, and forget irrelevant ones. You may not need your seed phrase for many years. You should generate it alone in a safe place (a café or a public institution will not work), away from prying eyes, cameras, or windows.
Furthermore, store at least two copies of your seed phrase on different storage devices. You can also inform your closest relative (husband/wife, the eldest child, etc.) about the place of storage of one copy. This way, in the event of death, your relative can inherit the assets.
How to store the seed phrase
We will compare the most common methods and options for storing seed phrases and determine the pros and cons of each of them.
Manuscripts do burn!
Theoretically, you can write down a seed phrase on any item: paper, cardboard, a piece of leather or fabric, plastic, glass, etc. This method would be reliable if there is a guarantee that this item would be preserved. However, our life is full of force majeure circumstances: fires, earthquakes, floods, wars, etc.
In addition, this piece of paper must be secured from third parties. Anyone who finds it even by accident and knows about crypto will become the new owner of the assets. Robbers break into bank safes easily, so private residence is not an issue for them.
An example of storing a seed phrase on paper
Advantages:
- paper is still better than nothing;
- possible access to assets after the death of the owner, provided that the record is preserved.
Disadvantages:
- the vulnerability of manuscripts, a piece of fabric or leather to fire;
- risk of stealing or robbery;
- due to poor paper or ink quality, the seed phrase may be lost over time.
Hardware wallet
This method is one of the best! Private keys and the seed phrase are encrypted in an isolated environment, which is extremely difficult to access for outsiders.
However, don't think that a hardware wallet is a panacea for all diseases. It has the same vulnerabilities as a laptop or smartphone.
Hardware wallets
Advantages:
- excellent level of digital security with two-level protection;
- convenient and reliable form factor;
- cold wallet (protected from cyber-attacks).
Disadvantages:
- requires certain technical knowledge;
- just as paper, it is vulnerable to fire or water;
- possible technical problems with firmware or the device itself;
- risk of stealing or robbery.
Special crypto seed phrase storage
With the development of the crypto industry, specialized solutions began to appear. One of these was devices for the safe storage of seed phrases. They are made of stainless steel, designed to store 12, 18, and 24 words, resistant to corrosion, salts, or acids, and able to withstand temperatures up to 1398 degrees Celsius. All you have to do is to collect all the words of the seed phrase from the available letters in the correct sequence (or apply a mini-engraver on the plate), place the phrase in the device, close it with a key and store it in a safe place.
Seed phrase storage
Advantages:
- resistant to fire, water, corrosion, salts, and acids;
- possible access to assets after the death of the owner;
- compact size.
Disadvantages:
- risk of stealing or robbery.
Encrypted USB drive (flash drive)
It is also a viable option if you have basic computer literacy. Recording of information on a flash drive and its encryption must take place on a computer that is disconnected from the Internet (ideally, live mode of Linux distro without access to the Internet). The seed phrase is written on the storage device in the form of a text document (you can additionally archive it with a password), and encrypted.
The USB drive can also work as seed phrase storage
Advantages:
- low costs;
- excellent level of storage security;
- compact size.
Disadvantages:
- requires certain technical knowledge;
- vulnerable to fire or water;
- risk of stealing or robbery.
- possible loss of information due to a broken cluster.
Incorrect methods of storing the seed phrase
1. Saving the seed phrase as a photo
If the photo is located on a secure storage device such as an encrypted flash drive, it is acceptable. But if you store it without any encryption on your computer or smartphone, it is extremely dangerous. Smartphone thefts are far from rare, and it is possible to attack a computer with the help of a specially-created virus that will steal important information.
2. Sending the seed phrase via messenger or email
You can't even imagine the amount of money users have lost because they carelessly sent their seed phrases via email or messengers. No one is immune from insider fraud (the acquisition of data by employees of any service provider). Don't tempt fate!
3. Making a tattoo on your body
Yes, there were cases. After learning about such a tattoo, criminals forcibly undress a person and transfer his assets to another wallet by rewriting the seed phrase.
Conclusion
As was already mentioned at the beginning of the article, it is worth choosing any two options and saving the seed phrase in two copies on different storage devices. There is no ideal option that would guarantee 100% success. There are always risks. But after reading this article, you can choose the least risky option which is most to your liking, and reject the dangerous methods of storing the seed phrase once and for all. Informed means armed!
