If are regularly following our blog you know that we often bitch about security. And the reason is just one – while you are reading this, somebody somewhere is going past security measures of an exchange, wallet, your bank account or even your house. This is why we are always trying to give you some valuable information on how to stay one step ahead of culprits.
Since we assume you are already familiar with hardware wallets and how they work, today we are going to talk about storing your recovery seeds. Note that many of the following tips apply to private keys as well. As you know, cold wallets are that special because they are devices that you can plug off the internet. Physical data storages can be accessed much harder than their digital counterparts. This is the starting point of every hardware wallet but you can even dig deeper and here is how.
How important is your recovery seed?
Your recovery seed is everything. Try to think of it as your master key. It controls everything on your device, including your funds. You should be even more careful with it rather than your private keys because your private keys can be changed by somebody else if they access your back up phrase. Now to get things going here’s how backup seeds work.
Backup phrases are the essential element in almost any cold wallet. They are that precious because even if you lose your wallet they can restore your control over it. You never ever want to miss that chance, trust me. Usually, when you first set up your Trezor, Ledger or KeepKey you are asked to enter your recovery seed in the form of real English words instead of some complex string of digits. Why? Because we are humans after all and it is easier to remember actual words. Pay attention that when it comes to Trezor you can use your backup only once, so please don’t mess around with it unnecessarily.
Devices generate recovery seeds that apply only to the wallet that created them. This key security principle saves a lot of headaches and vulnerabilities. But you get only one chance to check your backup phrase and rewrite it. Pay great attention to this process, double check for typos, word order, and capital letters. Otherwise, you are just an owner of a super expensive flash drive 🙂
Storing your recovery keys
Whether you own just a hundred bucks worth of cryptos or millions it doesn’t matter. You should always stay alert. These are our top security tips for storing keys.
- Never store recovery keys digitally. Remember, everything that connects to the internet can be compromised. Even Mark Zuckerberg types the camera on his laptop. Read between the lines babe, if somebody targets you it doesn’t matter who you are, your device will be hacked. Stick to that and you will be safe because you will keep sensitive information offline. The latest example that storing keys on your computer is just plain stupid was the Coinsecure fiasco.
- When writing down your recovery seed for the first time make sure you are at home, alone. Apart from being away from strangers, there is one more important thing, you are away from CCTV cameras that can be easily tricked by hackers to reveal the footage they have recorded. Speaking of cameras, it is advisable to type your laptop camera and cover the camera on your phone. Also, do not spell your recovery seed loud. Why? Because if hackers can hack your camera, they can hack your mic as well. Keep that in mind. Should I mention Mark again?
- Make several copies of your backup seed and store them in different places. The places should be safe enough so you can easily fall asleep at night without worrying about somebody else accessing them. However, if you trust a relative or a friend, let them know where the backup phrase is. This might be useful in case of accidents. The idea behind having several copies spread across different locations is that even if your house catches fire, you would still be able to control your funds.
- Natural disasters happen regardless of our wishes. So maybe investing in a strongbox or a Crypto Key Stack might actually be a good idea. The guys from the latter claim that their products are indestructible.
That was it lads, hope you found it useful.