As we have discussed many times, hardware wallets offer by far the best protection for your cryptocurrency funds. However, saying they are completely tamperproof would be a major overstatement as they have their vulnerabilities, too. Perhaps the worst thing that can happen to you would not be to have your cold wallet stolen but to lose your recovery seed.
Simply said, your recovery seed is your master key. With it, you have full and complete control over your cold storage. That’s why you have to do your best to protect it. It’s not only that someone might steal it from you if you’re not careful but you can just lose it. As simple as that – write it down on a piece of paper and leave it on the table. I bet my ass that “mom” is gonna throw it away the next morning. If you are not sure how to protect and store your recovery seed, this article might be of help.
Why recovery seed is that important?
I will quickly explain how your recovery seed works and you’ll make two and two. Most hardware wallets like Trezor, Ledger, and KeepKey will generate a unique recovery seed just for you. Usually, it will be a string of 12 to 24 simple words in English. Cold wallets’ manufacturers are taking it so seriously that they advise you to trust only seeds showed on the device’s display. In fact, they go as far as saying that even official apps should not be trusted when it comes to recovery seeds.
Once you set up your hardware wallet it would automatically generate your recovery seed. Now the only thing you have to do is to write down the words in the exact same order and keep them safe. Again, if you are having trouble, refer to “How To Store Recovery Seeds The Right Way In 2018”. Now take notes, one word may appear more than once in your recovery seed and this is completely normal. No, your device is not compromised.
Why does the recovery seed do?
Let’s imagine Joe loses his Trezor on the bus while going to work. Joe doesn’t freak out because he knows that his seed is safe and the device is useless without it. Joe just has to get a new device and enter his “old” recovery seed. Then the magic happens, everything is restored – passwords and all kind of data associated with his lost or stolen wallet. Now you know why it’s called “recovery seed”.
On the other hand, handling such a powerful tool as your recovery seed is a serious task because if someone obtains your seed they will have access to all your tokens, cryptocurrencies, digital assets, and passwords. I bet you don’t want that.
To find out how to check your recovery seed, click here.