You should be sure always that your wallet recovery phrase is secure. It’s vital to protect it from other people but additionally from unintended damage from water and fire. Losing your seed usually means losing all your funds.
What is a recovery phrase?
All cryptocurrencies together with Bitcion, Ethereum and others, use private keys and seed phrases recovery. Nowadays almost all cryptocurrency wallets use BIP39 recovery seed phrase standard. Hardware or software wallet generates it randomly when setting up. Consumer is asked to write the mnemonic recovery phrase down and safe it.
The seed recovery phrase grants full access to the wallet and permits to set up all the accounts and private keys. We should emphasize, that without your seed recovery phrase you won’t access any of your Bitcoins or different cryptocurrencies. This is why it is essential to use a trustworthy seed phrase backup.
This is equally vital to all kinds of wallets like:
· Hardware wallets like Ledger Nano, Trezor or Keystone
· Software wallets like Metamask, MyEtherWallet or Bluewallet
· Proprietary cryptocurrency wallets
It’s like that because most cryptocurrencies make the most of the BIP39 standard. It can be as Dogecoin, Cardano or Solana however it is best to take particular care of your recovery phrase.
Why it is best to secure your seed phrase?
The recovery phrase (seed phrase or mnemonic phrase) allows anybody to have full access to your wallet, including all your coins. This is a reason why it’s best to always store your seed phrase in a safe location and ideally on a fireproof and waterproof metal crypto backup.
When you store your seed phrase written on a bit of paper is very fragile and may easily be destroyed. There are many situations that will put your essential piece of paper in danger. Paper might be destroyed or made unreadable very easily.
It’s enough that your water pipe breaks and you’ve got a water leak in your apartment or house. When your apartment is flooded, your seed phrase on a chunk of paper might not survive it. Wet paper gets unreadable very easily.
Paper is also flammable. In case your apartment burns down, you will not have a copy of your recovery phrase. Probably additionally your pc with a wallet or your hardware wallet additionally burned down so you have no access to your funds and all your Bitcoins are lost forever.
Your insurance will pay you back for a destroyed building, furniture and electronics but they will never pay you back for you lost cryptocurrencies that you lost just because you have written it on a bit of paper.
The opposite situation that it’s best to protect your recovery phrase towards with stainless metal crypto wallet is throwing it out by an accident. Imagine your partner or other member of the family is making cleanup in your ‘old’ rubbish boxes. They throw it all out because it is just a box of old papers that has no value. But you hid your precious seed phrase there. And now it is someplace in your native landfill, not recoverable. You misplaced your funds.
This appears not very common. But there are stories of numerous people experiencing this – dropping all their cryptocurrency because they just used a bit of paper. Some folks lost Bitcoins worth literally millions (if not billions) of dollars just because their apartment obtained flooded by a neighbor or they did throw it out by an accident. This is the reason why everybody who is severe about their Bitcoins and crypto portfolio, secures their mnemonic phrase with the steel crypto wallet.
Learn how to secure your seed phrase?
The very best kind of metal crypto wallet is one made from stainless steel. If made from solid stainless sheets it can survive nearly anything. House collapse, fire, flood – anything. These crypto backups are made to last for decades. Stainless steel holds well even in seawater and is rust-resistant. It is wort spending round $eighty dollars to be safe for a lifetime.