A recovery phrase, also known as a seed phrase, is the (often) 24 words generated by your hardware wallet during the initial setup process. It is used to encrypt your private key into an easier to understand format (i.e. instead of a string of letters and numbers). Your 24-word recovery phrase is then used to identify, authenticate, and grant you access to the cryptocurrency in your wallet.
There are 2 main reasons why your recovery phrase is THE MOST important thing to keep safe when it comes to securing your cryptocurrency. Firstly, anyone who knows your recovery phrase can access and steal your wallet and funds. Secondly, if your hardware wallet breaks, is stolen, or misplaced, your 24-word recovery phrase can be used to restore it. But if your recovery phrase is stolen or misplaced, there is no bank or institution to back you up or give you a replacement. And because of the secure nature and random mathematical sequences used to generate the private key, there’s no way you or anyone else can recover it, so you will lose access to your cryptocurrency.
Now that we’ve covered why it’s so important to keep your recovery phrase safe, let’s look at how you can do exactly that!
HOW DO I KEEP MY RECOVERY PHRASE SAFE?
When you first set up your hardware wallet, you will be prompted to record the recovery phrase. Of course, you could simply write your recovery phrase on some paper, but this isn't the most durable option. Paper is easily destroyed or misplaced; we've heard plenty of stories about this happening, and there's no way to fix it!
There are a few other things we advise you NOT to do:
- Keep your recovery phrase somewhere online where it can be easily hacked.
- Take a screenshot or a mobile photo of your recovery phrase because anyone with access to your computer/mobile can easily copy it.
- Keep it on email or in the cloud.
- Rely solely on your memory to recall your recovery phrase.
- Store it on an online password manager.
By now you may be asking, what CAN I do with my recovery phrase?
Companies such as Billfodl have developed recovery phrase devices. This option is far more stable, solid, and dependable. The Billfodl is made of 316 stainless steel, which has a melting point of nearly 1400 degrees Celsius. It can withstand more than twice the temperature of a typical house fire and is resistant to all types of electrical hazards. You simply recreate your recovery phrase in the steel unit using a randomised set of character tiles, creating an almost indestructible backup.
The Billfodl is back in stock at Coinstop! For just $145 AUD, you can ensure your recovery phrase is as safe and secure as possible.