To be in full control of your cryptocurrencies, means that you have the ability to secure them in your own way. And the biggest security aspect of your cryptocurrency funds is linked to your crypto wallet’s seed phrase, also called a recovery phrase.
Cryptocurrencies are revolutionary. When you store them in a non-custodial wallet like a Ledger Nano X, you are the one and only one in charge of your money. Unlike with banks, you can manage and transact your funds as per your will. This journey of being able to manage money without an intermediary is empowering. But as the saying goes, with great power comes great responsibility.
In this article, we will dive into the concept of seed phrases and how you can ensure their maximum security.
What is a Seed Phrase and Why Store It Safely?
The seed phrase is a 12, 18, or 24-word phrase that lies at the core of private key generation for every cryptocurrency you hold. It is like the master key owned by hotel managers. Even if keys to all rooms are lost, the master key can open any locked doors.
This means, your seed phrase is the only backup to your private keys, which can give you access to your crypto assets. Whether you lose your hardware wallet or forget your PIN, you can use your seed phrase to regain access to your private keys and your cryptocurrencies.
To make things clearer, let’s suppose you use the Ledger Nano X wallet to store your cryptocurrencies. And one fine day, you return home from work only to realize that you dropped the wallet somewhere on your way back. What do you do now? Did you just lose your crypto forever?
Not yet. Not as long as you still have your seed phrase.
You can restore your funds right away using a backup device or any other company. Once you have a new wallet, you can enter your seed phrase in the wallet and right away, your private keys and cryptos will be yours again.
But imagine the horror if you hadn’t stored your seed phrase safely when setting up the wallet and you fail to find it when needed. That’s when sweat will actually start rushing down your forehead. That’s when you’d have lost your cryptos. Forever.
This is why it is critical that you opt for the safest possible way to store your seed phrase. And right below, we will tell you how.
How to Securely Store Your Seed Phrase?
Before we even begin on this, let’s make two things very clear:
- You need to copy the seed phrase word for word as the wallet displays it. A change in an alphabet here or an alphabet there can be enough to make you part ways with your cryptocurrencies.
- You should never store your seed phrase on any application or device that is connected to the internet. Storing them offline is the safest option.
Now, let’s dive in.
People often note their seed phrases in documents or write them down on paper and keep them with all their other notes. But ask yourself, how many such notes did you lose? Or, what if someone throws (or eats, for dog owners) the sheet of paper on which you have this rather absurd looking but important phrase? Think about it, there’s a reason why you don’t see $100,000 bills.
So, do you think that’s a risk worth taking with your cryptocurrencies? Certainly not. It’s not a good idea to write down a key giving access to all of your funds on a sheet of paper and leave it unsecured.
If you still prefer to note your seed phrase on paper, you must store it inside your safe or a bank’s deposit box. That way, you’ll know where to find it when you need it. In case you prefer storing it digitally, you can create a document and store it on a flash drive that you do not share with anyone or plug it into an internet-connected device.
The security-conscious crypto users prefer to have their seed phrases engraved on steel plates for more longevity. It survives longer and is safer than a sheet of paper. But not all of us can imagine ourselves spending a day engraving our phrase on a metal plate. Let alone doing it in reality.
Cryptosteel Capsule — Steel-Grade Security for Your Seed Phrase
The easier alternative to engraving your seed phrase on a metal plate all by yourself is buying pre-engraved micro steel tiles by Cryptosteel. These tiles come along with a Cryptosteel Capsule — a cylindrical backup tool designed to safely store data of a maximum length of 123 characters. The outer case and the tiles are built using solid stainless steel to offer maximum durability to your seed phrase. This makes the capsule fully resistant to fire, water, and shock.
Built to protect your seed phrase from extreme conditions, the Cryptosteel Capsule comes in a compact size so you can hide it anywhere you find safe. Besides, when the outer case is open, it is still not possible to read the 24-word phrase at first glance. This ensures that you do not accidentally expose your seed phrase to someone.
You can use the capsule to store your 24-word seed phrase by inserting the tiles with the desired characters in the correct order inside the capsule. Additionally, you can separate each word using separator tiles to keep your phrase more organized. Once you lock your seed phrase in the capsule, you can rest assured that it will be safe even against flood and fire.
If you want steel-grade security for your seed phrase and cryptocurrencies, you can now buy a Cryptosteel Capsule here. The best part is, you can also buy it along with a Ledger wallet and secure your it from the moment you set up your wallet.
Offline is the Way Forward
As we already said, you shouldn’t even consider storing your seed phrase on an internet-connected device. Always go for offline methods. While paper and offline documents on flash drives serve the purpose, steel capsules by Cryptosteel take your seed phrase’s security to the next level. Now, the choice is yours — steel-grade security or paper-grade security?