A recent study found that over 4 million bitcoins, worth over $93 billion at today's prices, are estimated to have been lost due to people losing their private keys or seed phrases. Let's take a closer look at the five most common mistakes people make with their seed phrases and how to avoid them:
Not backing up the seed phrase: People sometimes forget to back up their seed phrases. If you don't have a backup, you risk losing your cryptocurrency holdings forever. And don't rely on remembering your seed phrase. 💭
Storing the seed phrase in a vulnerable location: People often store their seed phrases on their computers, phones, or other electronic devices. This is risky because these devices are vulnerable to malware, hacking, or physical damage. We recommend storing your seed phrase offline, such as on a Cryptotag 😉
Using an untrustworthy seed phrase generator: People often use online seed phrase generators without verifying their trustworthiness. This is risky because some generators may not be secure or may intentionally generate weak seed phrases. It is best to use the seed phrase your wallet generates for you. Also, do not use random websites to 'verify' your seed phrase. Only use trusted recovery seed checkers. 🔐
Sharing the seed phrase with others: People sometimes share their seed phrases with others, such as family members, friends, or support employees. This is a major security risk because it gives others access to your cryptocurrency holdings. You should never share your seed phrase with anyone, no matter how trustworthy they seem. ❌
Forgetting the seed phrase: People sometimes forget their seed phrases. This can happen if you do not use your wallet for an extended period or if you did not store your seed phrase in a secure location. Make sure to store your seed phrase in a secure place and to remember where you stored it. That is why it is smart to store your seed phrase offline.
It's important to note that scammers often try to steal seed phrases by posing as support employees. They may contact you and claim to be from your wallet provider, asking for your seed phrase to help you solve a problem. Remember, legitimate wallet providers will never ask for your seed phrase. Never share your seed phrase with anyone, and always verify the identity of the person you're communicating with before sharing any sensitive information.
🔗 Share this with a friend that needs to step up their seed phrase security game!
