As interest in virtual currencies grows, investing in crypto has become more normal than not.
Perhaps 10 years ago it was still an unknown and “scary” asset to buy due to the uncertainty of its use and reliability of safeguarding, which caused a boom in creating wallets and ledgers to store digital currency.
This is where the importance of the security of your wallet, and the need for seed phrase storage comes into play.
In this post, we will discuss what exactly is seed phrase storage, why securing your crypto with it is important, and explore the best hard wallets to store seed phrases.
What is Seed Phrase Storage?
Most people, when storing their crypto, do so on a “wallet” – these wallets can be hot (connected to the internet, where hackers have an easier time accessing your blockchains and keys) or cold wallet (do not rely on an internet connection to store your private keys, therefore deemed as safer).
A crypto wallet works just like a physical wallet would to store paper money and coins. Imagine that each bill in your hand represents a separate “virtual address” where your crypto is kept.
Each address needs its private key, like a password, that gives you access to your blockchain.
Now, this all seems pretty straightforward. But where extra security comes into play is the use of seed phrase storage on a hardware wallet.
This means that all of your seed phrases are stored on one physical metal plate, like that of Material Bitcoin, which stores all your addresses and protects your private keys from hackers.
It is literally a backup for your wallet’s security.
How are Seed Phrases Created and Used to Protect You From Hackers?
Seed phrases are usually between 12 to 24 words long. It is just like a secret sentence that gets you into a private club, giving you unlimited access to everything inside.
These phrases are generated using the BIP39 standard, from a list of 2048 words that are randomly put together to make an impossibly unhackable secret phrase.
Why You Need to Secure Your Seed Phrases
To store your seed phrase, there are many options. You can write it on a piece of paper, send it in an email or text to yourself, or try to memorize it…but the issue with all of these options is:
what happens if you lose that sheet of paper, your account gets hacked or you forget a word in the phrase?
If you lose the seed phrase in your wallet, that’s it. There is no help center to call or recovery method available. All of your crypto is lost forever.
This is why we recommend storing your seed phrase on a hardware wallet.
Chris Brooks, along with his son Charlie, are the founders of the crypto recovery business Crypto Asset Recovery, they told Cointelegraph in an interview, that in his experience, “human error can eradicate wealth. People should be more worried about leaving their seed phrase or private keys in paper wallets that can be mistakenly thrown out.”
Take James Howells, a Bitcoin miner for example, who lost £162 million worth of Bitcoin because he threw away his old computer. If James had kept his information on a hardware wallet rather than on his computer’s hard drive, he might still have been able to keep his fortune.
Hard Wallets: The Secure Choice
With a wide variety of crypto hard wallets available, such as Ledger, Trezor, Material Bitcoin, and Safepal S1, to name a few, it can become tricky and confusing to pick the right one.
For example, Ledger offers three different versions of a hardware wallet: the Ledger Nano S Plus, the Ledger Nano X, and the Ledger Stax. All three use a 24-word seed phrase recovery and are stored on a USB or E Ink touchscreen.
The issue here…they are still technically hot wallets, relying on you connecting to a computer or your mobile phone.
On the other hand, Material Bitcoin’s hardware wallet is an indestructible steel plate that you use to carve your seed phrase on with a punch.
It might seem a bit archaic, to carve your phrase on the plate, but this way, it is 100% in your hands.
There is no possible way a hacker can enter your account to steal your seed phrase, also referred to as a Mnemonic phrase, and since the plate is made out of AISI 304L stainless steel, it is unbreakable, waterproof, and fire-resistant.
The great thing about having your private keys protected by a seed phrase on a cold hardware wallet is that you can control where it is kept and who has access to it.
No need to worry if your memory fails you, or if your email gets hacked.
Just keep Material Bitcoin in a safe place at home, and you are all set!
FAQs on Seed Phrase Storage
How do you store seed phrases?
- Seed phrases can be kept in three different ways.
- Paper Wallet: it is just what it sounds like. Use a paper and pen to write your secret recovery seed phrase. Remember, if the paper gets wet, there is a fire or it rips…you are in big trouble!
- Hard Drive or USB: Storing your seed phrase as a digital copy has its benefits, like accessibility, but remember to not use it on a device that accesses the internet. Otherwise, your phrase is hackable.
- Metal Hardware: the most secure and unbeatable method.
What is the best way to store my seed phrase?
- The best seed phrase storage is hands down a hardware wallet made of steel. This is going to make sure that the security of your wallet remains safe, even in a fire.
Can hackers get your seed phrase?
- Well…it all depends. Are you using a computer, mobile device, or USB to store your sensitive information? If so, then yes. It is VERY hackable. But storing your private phrase on a physical hardware wallet, like Material Bitcoin, is 100% unhackable.
What is the Ledger Wallet controversy?
- For years Ledger Wallet has prided itself on being a top-of-the-line secure hardware, cold wallet for storing seed phrases. The issue came about when they released Ledger Recover, a recovery service that could extract someone’s lost 24-word seed phrase. The problem? This means that you were never in control of your seed phrase, meaning that Ledger itself could uncover your private keys.
Why Material Bitcoin Leads in Seed Phrase Safety
Seed phrases are the guardians of your crypto, and their security cannot be overstated.
Choosing Material Bitcoin for the protection of your crypto investments is the most reliable option out there, giving you total control of your private keys and seed phrase.
As non-custodial cold wallets are the best option, Material Bitcoin offers everything you need in terms of safeguarding your wealth.
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