A rundown of the best practices and worst hiding places for perhaps the most important and wealthy possessions in the home – Seed Phrases.
Under a mattress, in the seams of luggage, or even rolled up in a cigar, what are the worst and best ways to keep a seed phrase safe? The key to unlocking and recovering the cryptocurrency, the seed phrase, must be protected and secure.
Right now, with prices low and crypto tourists checking out, it might be time for some crypto spring cleaning. Security begins with a seed phrase, sometimes referred to as a recovery phrase.
There is no denying that Bitcoin and the entire crypto space are gripped by a bear market. Since Do Kwon’s experiment with Terra went down the drain, the crypto infection has smothered the most established exchanges, prompting many advocates of sovereignty to chant, “Not your keys, not your coins.”
In fact, not a day goes by that another “reliable” crypto lender freezes customer withdrawals. From the Singapore-based crypto lender Vauld, to the 200,000-strong Thai crypto exchange Zipmex, to the world-renowned Celsius exchange, many centralized lending platforms have suffered the same fate, with heartbreaking consequences for customers in 2022.
These circumstances are a timely reminder to keep track of your keys and make sure they are in a safe place. While prices are low and trust in centralized exchanges (places that claim to care about crypto) has also bottomed out, it’s time to increase the security of your crypto assets.
Seed phrases save lives
The source phrase, sometimes called the private key, is a list of 12 or 24 words that make up the mnemonic phrase. Figuratively speaking, a hardware or cold wallet contains these keys and provides a convenient way to send or “sign” funds.
With proper care, a seed phrase can save lives, as Alex Gladstein, human rights activist and strategy director of the Human Rights Foundation, often claims. For example, if a hacker steals a hardware wallet but not a seed phrase, this is not critical – the seed phrase can be used with a new wallet. If the government or an attacker forces you to flee, 12 or 24 words can be used anywhere in the world to access Bitcoin (BTC) or cryptocurrency funds.
Goldbug and Bitcoin skeptic Peter Schiff once messed up his seed phrase by mistaking it for his PIN number. This is the first mistake to avoid. And now a few more examples of where you shouldn’t save a seed phrase.
A couple holding billions of Bitfinex bitcoin and having their seed phrase stored in their cloud storage account wins first prize. As Cointelegraph reports, cybercriminals Heather Morgan and her husband, cybersecurity specialist Ilya Lichtenstein, saved their seed phrase to a cloud storage account. So the FBI only had to crack his iCloud password to access over $4 billion worth of BTC at the time of writing. The lesson here is not to store your original sentence online. This means that in a draft email or even a low-engagement tweet, your Evernote notes:
As reported by Cointelegraph, one should never type the seed phrase into the phone. Why? Because as one Reddit user found out, smartphone text prediction can actually guess the original sentence. Text hints, while sometimes useful for complex spelling or emojis, are counterproductive when it comes to protecting personal wealth.
While it sounds appropriate, a refrigerator is also not an ideal place to keep cryptocurrencies “cold”. When asked “Where’s the weirdest place to keep a seed phrase?” the Bitcoin enthusiast replied “fridge”. without explaining whether the seed phrase should be kept in or on the fridge. As it turned out, the non-fungible token (NFT) fanatic already had the seed phrase on his fridge:
Cointelegraph Editor-in-Chief Christina Lucrezia Korner suggested that the worst place to store the original sentence is in a bad memory. In fact, unlike the dates of historical battles, car keys or the names of acquaintances from life periods, the seed phrase should be remembered with all your heart.
Among the most creative but memory-stealing methods is memorizing “pages, lines, and words from favorite books,” which a B