In the ever-expanding world of cryptocurrency, safeguarding your crypto assets is paramount. One crucial aspect of this protection lies in the secure storage of your crypto wallet’s security phrase – rather it’s a cold or warm wallet, often referred to as a mnemonic seed phrase. This sequence of words is the key to accessing and controlling your digital assets, and secure the crypto you store on your cold wallet. Knowing where to save and how to protect this vital information is essential for any crypto owner.
The traditional methods of jotting down the seed phrase on paper or storing it on a disk on key have proven to be susceptible to risks such as loss, theft, or damage. In other cases, splitting it into several parts and securing each in different locations reveals even more risks exponentially. Opting for expensive and seemingly secure storage options like bank vaults can also introduce different risks and complexities for your beneficiaries, potentially leading to permanent loss of the sechrity phrases.
We often hear about crypto owners who save their security phrase in a digital format. However, this exposes them to many risks: physical access to their device and cyber threats. Whether it’s a banking trojan or an infostealer, these threats can find their way onto your device through various means such as malspam campaigns or simply by exploiting vulnerabilities in the network you are connected to. Some of these malware are specifically designed to search for crypto security phrases, regardless of whether they are stored in a hidden folder or password-protected archive.
As technology advances, the need for more secure and convenient solutions becomes increasingly apparent – espicially for digital assets.
Password Managers – Not All Are Secure
One highly recommended method for safeguarding your crypto wallet security phrase is by utilizing a password manager that supports the storage of private keys. Password managers are widely recognized for their ability to securely store and manage complex passwords for various online accounts. However, not every password manager is secured. You might heard from time to time over the news about hackers targeting those passwords managers, as they store the crown jewlary of their users.
When choosing a password manager for storing your crypto wallet security phrase, ensure it supports the storage of private keys and follows industry best practices for security. Look for features such as two-factor authentication, end-to-end encryption (HTTPS, for example), and a strong reputation in the cybersecurity community.
The rule: Not your private key, not your data!
Do not store your crypto security phrase in a password manager that do not use private keys that are never shared with the them.
Sometimes, it’s easy to identify those secured password manager by checking if they allows you to reset your password. If they does – they have your key (and your data).
Once you’ve done your due diligence and chosen a secure password manager, we recommend selecting a record name that doesn’t imply any connection to cryptocurrency, and definitely not the name of your wallet. Instead of using obvious names like “My Ledger” or “MetaMask,” opt for a random name that only you will remember, perhaps something resembling the name of a website with no major financial connotations. Hackers who gain access to your device, or individuals who may see your password manager left open while your device is unattended, or those who know your device password, will face difficulty identifying this random record name. Choosing a record name associated with well-known news websites or other non-financial habits is always a prudent choice.
Don’t Take It With You to The Graveyard
Setting a proper digital inheritance solution in place is essential in today’s interconnected world. As we navigate through life, accumulating assets, memories, and valuable information, it’s crucial to ensure that these are not lost or inaccessible to our loved ones after we’re gone. This is especially relevant for your crypto security phrase, especially if you have chosen to put it in a secure password manager with a random record name or in any other safe place, whether physical or digital. With OSTREON Inheritance, you can inform your loved ones about all the access details to retrieve your crypto security phrases easily and securely.
By proactively establishing a digital inheritance plan, you can guarantee that all your assets are passed on smoothly and efficiently, sparing your beneficiaries the burden of navigating complex legal processes or struggling to access important information. Whether it’s safeguarding financial assets (not only crypto), preserving cherished memories, or securing sensitive documents, a well-thought-out digital inheritance solution ensures that our legacy lives on and provides peace of mind for both ourselves and our loved ones.
