Zoom on the seedphrase
Zoom on the seedphrase
Not your keys, not your coins
For those of you who really want to hold your own funds (and dispense with the services of a centralized entity) the first thing to do is to make sure you hold your own private keys.
But it’s also important to be able to set up a recovery method to retain access to your funds in the event that:
- If you use a software wallet: you change hardware and have to reinstall it on another device;
- If you use a hardware wallet: in the event of loss, breakdown or theft of your wallet. Imagine using a Ledger hardware wallet: how would you access your funds if the screen or buttons no longer worked?
For all these reasons, it’s important to take precautions and keep your seed phrase safe. But what exactly is a seedphrase?
What is a seedphrase?
The recovery phrase can go by various names: Secret Recovery Phrase, Mnemonic, Seedphrase. All these terms refer to the same concept. It’s a sequence of 12 or 24 words which, if entered in the right order, will reset access to your wallet from any device.
In fact, it’s a human-readable version of the entropy used to generate your private keys. If entropy were not transcribed into comprehensible language, it would be a sequence of numbers that a human would be unable to remember. Seedphrase allows us to “translate” this sequence of numbers into several words that a human can remember.
This transcription was made possible by the adoption of the Bitcoin Improvement Proposal 39 (BIP-39), which uses 2048 words from the English dictionary to translate entropy into a recovery phrase. This protocol improvement update dates back to 2013.
Some people even choose to remember their recovery phrase by heart to make sure they don’t lose access to their funds. A commendable method, but not one that can withstand all life’s accidents. More on this below.
Why is it so important?
Each time you set up a new wallet you’ll be asked to memorize or retain your recovery phrase aka seedphrase.
As mentioned above, this sequence of words is the only thing that will enable you to regain access to your funds if you lose access to your device and need to reset your wallet. Be particularly vigilant in keeping your seedphrase. The crypto world is full of inverstors who have permanently lost acess to their funds because they didn’t take care to carefully write down their seedphrases.
That being said, it’s natural that your reflections should go through a relatively lentghy process before you choose the best option for you. You must choose was suits best your personnal needs. By definition, the best storage method should be simple, secure and cheap, just like Seedkeeper.
How to keep your seedphrase safe?
On the Internet, you’ll find several methods of storing recovery phrases:
- The piece of paper
- Some investors write down their seedphrase on a simple piece of paper. Yes, this is simple and cheap but not very secure. They could lost the paper, or even destroy it by accident. Sun, water and even dogs are threats to this storage method. We do not recommend to store your seedphrase on a non-durable medium.
- The steel plate
- On the other hand, some investors write their seedphrases on sturdier media, such as steel plates that resist heat and cannot be destroyed as easily as a simple sheet of paper. However, while this method has the advantage of durability, it is not without its drawbacks. Transportability and discretion are among them. The question of cost also arises, as such a solution can cost from 50 to 100 euros depending on the size and quality of the metal plate chosen to inscribe the backup.
So, what is the best option?
If you’re looking for a simple yet safe, affordable and easily transportable way to secure your seed phrases, take a look at Seedkeeper.
Why is Seedkeeper one of the best (if not the best) option to store and secure your seedphrases ?
- Seedkeeper is an inexpensive storage medium.
For €25 you can get a smart card that will enable you to store several seedphrases. Unless you gave hundreds of wallets, all you recovery phrases can be stored in one Seedkeeper. - Like all Satochip products, SeedKeeper’s code is open source and freely available on our GitHub.
So anyone can check that the firmware works as it should, and that there’s no risk to the security of your funds, don’t trust, verify!
Unlike some of the solutions described above, Seedkeeper is easily transportable and can also be easily stored away from prying eyes. It’s certainly the best way to store your recovery phrases without attracting attention. It’s also a durable medium for keeping your secrets over time, without the worry that it won’t work after a few years. No screen, no battery, no risk of your smart card no longer working when you need it the most!
