How to keep your NEAR safe
The Critical Role of Seed Phrase Storage
Picture this: You’ve embarked on the exciting journey of cryptocurrencies, setting up your non custodial wallet. Suddenly, you realize your seed phrase, that crucial string of words you were told to keep safe, has gone missing or worse, someone else has gained access to it. Either way the result is exactly the same, your crypto and your future is gone!
Decoding Seed Phrase and Its Significance in Crypto Security
A seed phrase, often called a «mnemonic,» is a unique array of words that serves as the master key to your non custodial wallet. In case you lose access to your wallet or need to restore it, this seed phrase is your lifeline. Therefore, seed phrase storage is a pivotal element of crypto security.
Key Principles of Seed Phrase Storage: The Dos and Don’ts
Do Write It Down
The first step in secure seed phrase storage is to transcribe it on a physical piece of paper. Avoid storing it digitally as this greatly amplifies the risk of it falling into the wrong hands.
Don’t Limit Storage to One Spot
It might seem logical to store your seed phrase in one location until that spot is compromised. To mitigate such risks, keep copies in multiple secure areas. This becomes even more important if you use paper as a support, since paper can get damage by water fire and everything in between.
Do Consider Robust Storage Solutions
There are a whole line of products designed to store your seed phrase in a more durable support than paper, products like Cryptosteel, Cryptotag or Billfodl among others provide a resilient way to store your seed phrase. They’re impervious to fire, water, and shocks, safeguarding your seed phrase from natural disasters.
Mastering the Art of Wallet Management: Why One Isn’t Enough
In the world of cryptocurrencies, using several wallets can be an effective strategy for both interacting with the network and storing your assets. Let’s break it down:
These are the wallets you use for daily transactions, such as buying, selling, or trading crypto. They don’t hold a significant amount of your assets and act as a buffer between your main storage and the rest of the network.
These wallets are where the bulk of your assets reside. They’re like your personal crypto bank, and just like a real bank, they should be accessed infrequently.
This dual-wallet strategy can help reduce the risk of losing your assets, as you won’t expose your main storage to potential threats every time you make a transaction. NEAR Mobile make it super easy to manage several accounts, you can try it here
Exploring the Storage Landscape: Seed Phrase Storage Options
While the traditional pen-and-paper method is a secure way to store your seed phrase, several products are designed specifically for this purpose. Let’s take a look at some:
Cryptosteel offers a stainless steel solution for your seed phrase storage. It’s fireproof, waterproof, and shockproof, ensuring that your seed phrase can withstand almost any disaster.
Cryptotag is another heavy-duty storage solution. It allows you to engrave your seed phrase onto a titanium plate, providing a near-indestructible record of your seed phrase.
Billfodl is a slim pocket-sized recovery wallet made of 316-grade stainless steel. Allows seed phrase entry using lettered tiles.
These products combine durability with simplicity, offering a robust and user-friendly way to safeguard your seed phrase.
Seed Phrase Storage: Going the Extra Mile
Safe Deposit Box and cold wallet
For an additional layer of security, you might want to consider using a safe deposit box at a bank and using some sort of cold wallet, i.e. using a device that is never connected to the internet. While this method comes with its own set of challenges, it adds an extra barrier against theft.
If you have a good memory, you could consider memorizing your seed phrase. However, this should serve as an additional measure and not as your primary method of storage.
Common Pitfalls in Seed Phrase Storage: Mistakes to Avoid
Managing your seed phrase requires attention and diligence. Here are some common mistakes to steer clear from:
Sharing Your Seed Phrase
Never, under any circumstances, should you share your seed phrase with anyone, not even those you trust implicitly. Your seed phrase is akin to your personal ATM PIN, and it should be treated with the same level of privacy. In some way, sharing your seed phrase is like giving away your identity letting anyone with it impersonate you.
Resorting to Digital Storage Methods
While it might seem convenient to store your seed phrase on your computer or smartphone, it’s a high-risk strategy. Digital devices are susceptible to malware and hackers, making them unreliable for secure storage.
An all too common mistake that some newbies make is taking a picture of it or digitally copying it (cmd/ctrl + C) to later store it offline, be aware that once something has been online, it is really difficult to get rid of its digital presence all together.
Conclusion: Seed Phrase Storage and Its Impact on Your Crypto Journey
The careful management of your seed phrase is a cornerstone of crypto security. By adhering to the strategies and precautions outlined in this guide, you can ensure that your digital assets remain secure and accessible only to you.
So, what’s the consequence of misplacing your seed phrase? The answer is as simple as it is daunting: you risk losing access to your crypto assets forever. The significance of proper seed phrase storage cannot be emphasized enough, and we hope this guide has provided valuable insights on this vital subject.
Seed phrase storage becomes simple if you take the time to think it through. Remember the quintessential crypto saying not your keys, not your crypto, keep them safe.
Of course, all this make sense, provided you use a non custodial wallet such as NEAR Mobile wallet