![]() ![]() Metal backups are another simple way to store a seed phrase, and many crypto investors, especially the ones who have been with crypto since the beginning, appreciate it. True enthusiasts may want to check out the DIY Bulletproof Bitcoin. Some of the best examples encompassing this solution include Attenou, Bitkee, Blockplate, and Bravo Seed Coin. Metal backups are also a good way to go for those looking for a more durable solution, which involves stamping or even engraving the words on a piece of metal. These devices combine robust security features such as multisig access and high-level encryption while also ensuring that users have access to their seed phrases whenever they want.” These hybrid solutions, according to Cristóbal Rosa, CEO of Cuvex, will become more in vogue with time.Ĭurious about the features this combination could bring, I reached out for a comment from Rosa, who said, “In the future, cold encryption devices will gain more traction. They offer high-level encryption, incorporate a hardware element, and keep seed phrases accessible. Simpler and more flexible options like hybrid digital solutions are therefore gaining prominence. Yet, he noted the difficulty when it comes to using this method, saying, “It's also an absolute nightmare if you have to actually do it yourself.” According to Zofka, more division of the seed phrase will provide more security to the crypto wallet. He continued that if a user wants the most secure option, they must divide the phrase into 16 shards. And then I can also decide how many of those shards I need to recover my wallet.” And depending on the type of wallet, for example I am using Keystone Pro, I can select anywhere between 2 to 16 shards. In his YouTube video, Zofka explained, “You basically take your seed phrase and split it into multiple elements, or shards. Shamir's Secret Sharing Scheme, as YouTuber Andy Zofka AKA Crypto Like a Pro (previously Crypto Badger), puts it, is “Something like Horcruxes in Harry Potter.” One of them is SSSS or Shamir's Secret Sharing Scheme. However, these are only meant for advanced users. Such issues have driven people to look into more advanced solutions within the crypto realm. 80 addresses were stolen, and by the time the attack stopped, 25 victims lost a total of $4.4 million combined. The popular password manager came under fire in 2023 when its seed phrases were compromised. One of the latest examples of this incursion is what happened to LastPass. Such solutions put too much responsibility of protecting the keys on a single organization, which can give hackers a single point of failure to exploit. However, software-based solutions are still online, which means they take custody of the seed phrase away from the only people who need access to them: Direct users. Highly secure and often containing multiple encryptions, a digital vault is a good choice. However, software wallets have been so vulnerable in the past that most crypto enthusiasts stay away from them.Īnother digital solution comes in the form of a digital vault. There are multiple digital solutions available online to store seed phrases. For that reason, CoinCover has called it one of the “ worst” places to store a seed phrase. ![]() A piece of paper is easy to lose, and when you're traveling with it, there’s no guarantee it will be protected. However, while paper-based storage is convenient, it is not optimal by a long shot. Furthermore, paper-based storage is good for those in a hurry to find a way to store a seed phrase offline. It’s simple, accessible, and doesn't take any technical know-how. Get a piece of paper, write the seed phrase on it, and you are done. The simplest way to store a seed phrase is paper. Here, we dive into all the options: Paper-based storage, digital solutions, metal backup options, and hardware wallets. There are multiple ways to store seed phrases. Trying to memorize them is not enough for most people. That is why it is important to safeguard key phrases at tangible locations. If your seed phrase is lost or stolen, you risk losing access to your digital wealth permanently, as it cannot be recovered by anyone else. Therefore, securing your seed phrase is crucial because it is the master key to accessing and controlling your cryptocurrency and digital assets. According to Chainalysis, over 20% of the existing Bitcoin BTC supply is lost or lying inside inaccessible wallets.įurthermore, an article by Business Insider noted that investors were expecting to lose $545 million worth of Bitcoin in 2022 due to forgotten seed phrases. The Importance Of Storing Seed PhrasesĬryptocurrencies are regarded as the most volatile assets not just because of their price action, but also because most people have been negligent when storing them. ![]() Therefore, having and storing seed phrases is crucial. Without seed phrases, crypto assets will not have the right security. ![]()
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