Seed Phrase Security
Last updated
Last updated
With the advancement of the blockchain technology more and more people start to invest and use crypto currencies. If users do not want to keep their assets in exchange markets, like Binance or FTX etc. they use digital or hardware wallets. Generally in exchanges there is some certain security along with the user’s own responsibilities, using strong password, activating 2FA. With the wallets, users should also make sure to keep their account secure. This security is further implemented with the usage of seed phrases.
A seed phrase, or a recovery phrase, is a 12, 18, or 24 word phrase in a certain order that can be used to access a crypto wallet. If you forget your password of your digital wallet or lose your hardware wallet you can still access your wallet with the help of these seed phrases. You can think of these seed phrases as the master key in the hotels.
If you also lose or forget your seed phrase you will lose access to your wallet and whatever crypto you own in it forever. With the same logic, whoever knows your seed phrases can access your funds. So it is really important to keep these secure.
Different ways you can store these phrases from least secure to most secure are;
Using a service like Google Keep, etc.
Writing down to a notepad app locking the app
Writing down to paper and securing it safely
Engraving on a metal plate and securing it safely
As you may have noticed offline methods are more secure than the online ones since they are hack-proof. To further increase the security of these you can do any of these things;
Using Ghost Ink (words will be readable only under UV light)
Keeping the paper or plate under lock
Using substitution cipher (or keyword cipher) cryptography method for the phrases
But of course there are risks to offline methods as well, like losing the plate you have engraved or burning of the paper in a fire. Even though there are minimal probabilities for these to occur, it never is zero. Our final suggestion would be, never keep your phrases in one location, rather store them in different places away from each other.