What is the most effective way for a crypto trader to store his or her crypto assets? A stable cryptocurrency wallet is the easy response. The issue arises from the fact that exchange sites are a no-no for asset storage; however, wallets have technology that can help keep the coin safe for a long time.
The recovery seed, also known as a pass, is, however, one of the criteria for developing a wallet. In certain instances, the expression consists of 12 to 24 random words, making it difficult to remember. As a result, a wise investor understands the importance of recording the phrase in a document for future reference. What is the most effective method of storing the recovery seed (mnemonic pass)?
Use the Paper Wallet Principle
Using paper wallets to secure your passwords is possibly the best option. It mainly includes scribbling the expression on a piece of paper.
For centuries, paper and pen have been the most effective means of transmitting information. The use of paper and pen can be traced back to ancient Egypt and other countries such as Greece and Spain.
Archaeologists have found several pieces of paper with valuable information from the past that are still readable over time. As a result, keeping your mnemonic passes in paper stores is the safest option.
Unlike other computers or hard drives, which fail after a few years, paper is the best choice because it can hold data for a lifetime and even longer if necessary.
Divide the pass into two sections.
Splitting the pass into small sections with fewer elements is another way to increase the protection of your pass. The latest, shorter phrases are written on various papers and held in various locations.
The theory of dividing the pass does not necessarily imply breaking it into two parts. You can break the pass into more than two parts depending on your security requirements.
Splitting the pass decreases the chances of unauthorized parties gaining access to the entire pass. If an individual gains access to part of the recovery phrase by accident or on purpose, they would be unable to use it without the other sections.
It's important to remember to number the pieces in the correct order while doing this. You will not be able to access your properties if the sequence is incorrect.
Have two or more papers
Using just one piece of paper is dangerous because you would lose the coins if the paper is lost. As a result, having several sets of papers for the term is critical when making the paper wallet.
After obtaining two or three documents, position them in various locations in your home and ensure that you can remember them easily.
If the user has a large number of coins, the user may want to laminate the paper to make it waterproof. Others tend to have vaults in their homes that cannot be destroyed by fire or water to ensure that their belongings are secure in the event of a natural disaster.
Adequate paper security, whether at home or elsewhere, can help to keep your coins secure for a long time.
Avoid digital copies
Any digital versions of the expression should be avoided. Do not type the password into a word, excel, or other Google or digital document.
Also, please refrain from photographing the expression. Never send the document via email or upload it to a cloud service.
It is simple to hack or replicate any digital or online copy of the document and recovery process. Such records will be used by criminals, who will steal your coins.
Advanced Recovery phrase
Another important move in securing your recovery phrase is to use the advanced recovery phrase function, which is only available in a few wallets. You can use custom passphrases as your recovery phrase with this feature.
Getting a custom pass will help secure your recovery phrase because you will always have the custom pass even though attackers get the recovery phrase. Criminals would be unable to steal your coins if you have the custom pass.
To use the custom pass feature, you'll need a wallet that supports it, such as the Trezor wallet.
Memorize your passphrase
You may use the mnemonic pegging method, which involves using precise rhyming numbers to peg terms, to help you remember the move.
Make use of Cold Key Storage.
If you're concerned about the security of using a paper wallet, you can opt for the cryptosteel alternative, which engraves the key on steel plates.
Have it in your will
The pass should be included in your will so that your fund may be passed on in the event of your death. Following the death of a family member, some families form feuds over money, choosing the most trusted member and reminding them of the position of the key.
Final thoughts
Investors and wallet holders are in desperate need of safer ways to secure their wallet addresses as phishing, hacking, and other illegal activities become more common. One way to improve the security of the initial step is to use recovery phrases. As a consequence, the recovery phrase works largely in the same way that 2nd-factor authentication does.
This word, however, must be protected in order to reduce the risk of criminals gaining access to investors' wallets. As a result, this article outlines six ways in which an investor can safeguard their recovery period.
One thing to keep in mind is that instead of using static forms like paper, you can avoid using online or digital versions of the word. Furthermore, you should memorize the pass using the advanced recovery expression technique.
The will made me laugh. But it really does work, especially when you are ibvesting long term for your kids future