A seed phrase in cryptocurrency is a list of words (usually 12, 15, or 24) that works like a main key to open and get back your crypto wallet. This phrase contains all the details needed to get back and control the money in your wallet.. If you lose your wallet, it breaks, or you forget your password, you can use this phrase to access your cryptocurrency again. It's very important to keep your seed phrase secret because anyone who knows it can take all your assets. This means you should NEVER share this with anyone for any reason and only enter it on trusted wallets.
Offline Storage
Store your seed phrase offline. This means not using internet connected devices for storage, as they are vulnerable to hacking and malware attacks. Keep in mind that different types of storage have different advantages and disadvantages.
Physical Writing
Write the seed phrase on paper or, preferably, on a more durable material like metal (e.g., cryptosteel) that is resistant to fire, water, and other environmental hazards. This provides long term security against physical damage. Writing on paper is a start but keep in mind that ink may bleach out or can’t be readable after a long period of time.
Secure Location
Keep the written seed phrase in a safe and secure location, such as a safe or a locked drawer. It’s important to choose a place where it is protected from theft, loss, and unauthorized access.
Avoid Digital Storage
Refrain from storing your seed phrase digitally, such as in screenshots, photos, text files, or cloud storage, as these methods are vulnerable to cyber threats.
Tip:
Keep your seed phrase safe in several ways
It's wise to have more than one secure method to keep your seed phrase protected. This means you could have a paper copy stored safely and another copy on a durable material like metal that won't easily get damaged. This way, if one copy gets lost or ruined, you still have another copy to use. Make sure to store these copies in different spots. If something bad happens to one spot, the other copy will still be safe. Doing this helps ensure you can always access your seed phrase, no matter what.
Wallets like Eternl, Lace, Yoroi, and Flint are safe ways to manage your Cardano (ADA) cryptocurrency. When you use these wallets clients combined with hardware wallets like Ledger, Trezor, or Keystone, your security becomes even better. Hardware wallets keep your private keys (access keys) on device only. When you make transactions, they are checked and approved through the hardware wallet itself.
If you want to keep your cryptocurrency safe for a long time, it's better to use your own personal wallets instead of leaving them on exchange sites. Personal wallets are safer because they have fewer risks than exchanges. Exchanges can sometimes be hacked or have other big problems. Past incidents like what happened with Mt. Gox and FTX show how dangerous it can be to keep a lot of cryptocurrency in wallets on exchange sites for too long. Not your keys, not your crypto.
Two-Factor Authentication (2FA) is like adding a second authentication method to your online accounts. It makes it harder for someone else to gain access to your accounts. When you use 2FA, you need two different ways to prove it's you. This could be something like a password and then a code shown in your authenticator app.
Be careful about people who contact you and make sure they are who they say they are. This helps you avoid scams and phishing (tricks to get your personal information). When someone messages you on social media, be extra careful. If you need help or have questions, it's a good idea to use Discord channels that are related to the topic you're interested in. Remember, no real company or their workers will ever ask you for your seed phrase and usually won’t initiate private message contact with you.
A VPN (Virtual Private Network) helps to keep your online activities private and safe, especially when you're doing things like buying or selling online or using your online wallet. A VPN hides what you do on the internet by changing your internet connection to make it secret and secure. This means it's hard for anyone to see or track what you're doing online. But it's very important to choose a VPN service that is reliable and doesn't keep records of your online activities. This helps to make sure your privacy and safety are well-protected.
In the context of crypto, a hot wallet and a cold wallet refer to two types of cryptocurrency storage methods with different security and connectivity features:
A hot wallet is connected to the internet. It's easier to use for buying, selling, and managing your crypto. But since it’s online, it can be at risk of being hacked. These dangers can lead to someone getting into your wallet and possibly stealing your crypto. If you use a hot wallet, you should be careful and use good security steps like strong passwords and keeping the wallet software updated.
A cold wallet is different because it's not connected to the internet. It's used to keep your credentials safe and is generally more secure than a hot wallet.
Hardware wallets are small physical devices that keep your private keys (like secret codes for your crypto) safe and offline. This makes it hard for hackers to get to them.
¶ Good Things About Hardware Wallets:
Better Security: They're not connected to the internet, so they're safe from online hacking.
Control Over Your Keys: You have full control of your private keys.
Strong and Lasting: They are made to be tough and long-lasting.
Can Hold Many Types of Crypto: They usually support different cryptocurrencies, not just ADA.
¶ Downsides Of Hardware Wallets:
Cost: They cost more than free hot wallets (online wallets).
Less Convenient: Not as easy to use for frequent trading or quick transactions.
Risk of Losing or Breaking Them: They can be lost, stolen, or broken because they're physical objects.
For people who trade a lot or need fast access to their ADA, hot wallets (online wallets) are more practical, but they have some security risks. However, for big transactions and keeping your crypto safe for a long time, it's better to use hardware wallets like Trezor, Ledger, and Keystone. These wallets are known for being really secure and they lower the risk of online dangers. Also, these hardware wallets work with the Eternl wallet, which makes them even more useful for Cardano users.
Everything mentioned before also applies to using Eternl. The most crucial thing is to securely store your seed phrase.
Additionally, it's advised to use Hardware Wallets such as Ledger, Trezor, or Keystone in combination with Eternl to boost security. This approach provides added safety because it keeps the private keys offline.
Eternl wallets ensure that master keys are encrypted with a spending password and stored locally. This means your keys are not exposed online.
Keep your wallet software up-to-date and follow general best practices for digital security.
Stay informed by watching tutorials and reading guides on how to effectively use Eternl.
Remember, the key to security is not just the tools you use but also your practices in managing them.