If you have a hot or hardware wallet for cryptocurrency, during its creation you were asked to write down a BIP39 mnemonic phrase, which can consist of 12, 18 or 24 words.
As a rule, the phrase is written in a diary, notebook, notebook, or in special waterproof cards that come with hardware wallets. The security and availability of all your cryptocurrency assets depends on this rather fragile piece of paper.
Many users ignore basic security rules in the storage of mnemonics. Therefore, we have prepared a list of good and bad ideas for storing a mnemonic phrase that will help avoid many unforeseen situations.
How to store the seed phrase?
To begin with, how to properly store the code seed-phrase to access your cryptocurrency wallet, so as to protect your assets as much as possible.
Special devices
If you are worried about the loss of your mnemonic phrase as a result of natural disasters – flood, fire, or accidentally spilled coffee on recorded phrases, then we recommend using special devices – Cryptosteel or Billfodl .
These devices, made of stainless steel, are able to withstand almost any possible natural hazards and external influences.
Storage locations
Even devices such as Cryptosteel cannot fully ensure the safety of mnemonics, since the place where the mnemonic phrase is stored is also important.
The ideal place is a safe in your own home or a safe deposit box, which, as will be seen from the article below, is the best place to store.
The most extreme case is to keep the mnemonic in a place that is not obvious to intruders, or to find an alternative and keep phrases away from home. As practice shows, convenience and safety are on a different side from each other.
Lamination
Lamination of a mnemonic phrase is not an extra precaution and can protect you from moisture, stains, physical damage, tearing of paper and smearing of ink.
It should be noted that only the owner of the mnemonic should be done without strangers. Fortunately, currently laminating devices are sold at affordable prices.
Multiple copies
You can also store more than one copy of the mnemonic phrase. In this case, they should be stored in different geographic locations in order to increase safety and reduce the likelihood of loss of a recovery phrase as a result of theft or accident.
For example, one copy may be stored in a safe, and the other in a bank box. That is why the complete set of hardware wallets – Trezor, Ledger, Keepkey, CoolWallet included two cards for recording phrases.
Do not forget about the inheritance
It is important to understand that no one is protected from an accident. Therefore, hide the mnemonic phrase in a place where your loved ones find it in case something happens to you.
That is why a small cell with little introductory information about what it is for 12 or 24 words will be an ideal storage place.
Additional passphrase (Passphrases – 25 word)
Perhaps the most advanced way to ensure the security of cryptocurrency assets is the passphrase, which was also proposed in the proposal of BIP39.
In another it is called the 25 word , that is, it means an additional word to the existing mnemonic phrase (if the phrase consists of 24 words). This phrase generates a completely new wallet with a unique structure, private and public keys.
Important information about the passphrase :
- The passphrase can consist of ASCII table characters;
- It can be in the form of letters, words and whole sentences;
- The code phrase generates a new wallet with new addresses;
- There is no wrong code phrase, as each new phrase will generate a new wallet;
- If you do not enter anything in the phrase field, then you will go to the default wallet;
- Without a passphrase, it is impossible to access the wallet;
- The loss of a code phrase is equivalent to the loss of a mnemonic phrase.
Even if the attacker finds your mnemonic phrase, he will not be able to steal the funds, since you will need to enter a phrase to access cryptocurrency assets. This advanced feature is available on popular Trezor, Keepkey, Ledger hot and hardware wallets.
How not to store the seed phrase?
- On electronic media, even if it is in offline mode most of the time;
- In the form of a photograph;
- In the email;
- In the password manager;
- In Google documents and cloud services;
- Forward by text messaging;
- Print to printer;
- Send by fax;
- Some people use USB flash drives to store phrases, but even this can be compromised in certain situations. Why risk it?
- Do not carry a mnemonic phrase with you, as you can lose it.
Summing up
There is no universal method for protecting a mnemonic phrase. Each user must choose the best way for himself, but in our opinion it is important to take into account three main recommendations:
- Save the phrase in several places;
- Use special devices: Cryptosteel, Billfodl;
- Use the mnemonic phrase along with the Code phrase (the 25th word);
- Save the phrase in the bank box, because if something happens to you, your loved ones will find it.
Online store Cryptonist.ru will help ensure security for its crypto assets:
- The official representative of Trezor hardware wallets and Digital Bitbox in Russia;
- You can order hardware wallets and storage devices for mnemonic phrases Cryptosteel, Billfodl on their website https://cryptonist.ru
Publication date 03/26/2019
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