Every time when it comes to organizing the storage of a cryptocurrency, a novice crypto enthusiast comes across a mention of a seed phrase. It is also sometimes called a recovery phrase or mnemonic phrase. Actually, these names reflect its purpose and features: it is needed to restore access to your coins and it is relatively easy to remember.
The security of the chosen method of storing your cryptoassets depends on the security and confidentiality of your seed phrase. As long as it is in your hands, your assets are really yours. Forgotten wallet password or loss of the wallet itself is a completely fixable problem. Unless the planned USDT to TRX exchange will have to be done later, after access is restored. The loss of the seed phrase means that it will be impossible to restore access to coins in such cases.
In general, it is really necessary to write down the set of words generated by the wallet during the setup process. However, there are a few more things to keep in mind:
Before transferring the phrase to any medium, make sure you are safe. It is better to write down a sequence of words away from the laptop camera and windows.
It is desirable that in your social circle there is a person whom you trust and who can be dedicated to the fact that you have a cryptocurrency. If something happens to you, he will be able to properly dispose of the assets.
Modifying the seed phrase when writing is a very bad idea. This will not greatly hinder the attackers, but you will create a problem for yourself and your heirs.
How can I store the seed phrase
Just remember her
The mnemonic phrase is relatively easy to remember. We will clarify if you speak English well enough. However, there are many memorization techniques, and if you set a goal, it is possible to memorize and remember any abracadabra. However, the brain adheres to one “rule”: everything that is not used for too long can be thrown away. More precisely, hide very deeply and forget exactly where. So if you prefer to rely on memory, the seed phrase will have to be repeated periodically.
Pros of this method:
- No additional costs.
- More secure than any encryption system.
- Completely eliminates the possibility of theft.
- There is a risk of forgetting the sequence of words. It will be especially disappointing if this happens as a result of a stroke or injury and you are in dire need of money.
- After your death, it is unlikely that anyone will be able to use your wallet. However, you won’t have to worry about it.
Write down on paper
Actually, it may not be paper, but any other vulnerable material: fabric, plastic, cardboard, leather. This method is good exactly as long as your record is safe and sound. But in life, unforeseen troubles happen: fires, natural disasters, robberies … The list can be continued indefinitely.
- Even if you forget the mnemonic phrase, it will be saved on the physical medium.
- Your heirs will use the funds without any problems after your death.
- The paper burns beautifully and gets wet, and the ink can fade over time.
- Your record may fall into the wrong hands and your coins may be stolen.
A hardware wallet is a miniature device specifically designed to store private keys. To date, this is the best solution for working with cryptocurrencies in terms of security of storage and ease of use of assets. Of course, you will have to first connect your wallet to a device with internet access before you can log in to letsexchange.io but that’s not such a high price to pay for security. Private keys and seed-phrase are stored in encrypted form isolated from the Internet and it is very difficult for unauthorized persons to gain access to them.
However, you will need another secure copy of your seed, as a hardware wallet is not 100% secure either.
Pros of storing in a hardware wallet:
- Very high level of security.
- It is very difficult for an outsider to extract information from a carrier.
- The device can be lost, broken, unsuccessfully updated.
- The device is very likely to be stolen.
- There is a risk of damage to the device in fire or water.
- Some models of hardware wallets can be hacked.
Special devices for storing seed phrases
Some hardware wallet manufacturers have taken into account existing vulnerabilities and offer buyers ready-made solutions. In particular, Ellipal Titan, Ledger, SafePal are already doing this. The basic delivery package of some hardware wallets includes metal plates for applying a seed phrase. There are also more advanced options, in which the phrase should be assembled from individual letters, and then placed in a case. After that, the closed case remains to be put in a safe place.
Pros of the method:
- The metal carrier does not burn and is not afraid of moisture.
- Your heirs can access crypto assets.
- Additional purchase costs.
- Media may be lost or stolen.
In general, each of the methods is especially good in some ways, and inferior to others in some ways. None of them are perfect, but you don’t have to focus on just one.