Hardware Wallet Seed Instructions - Btc Ltc Eth Etc

in #bitcoin6 years ago (edited)

The seed of your hardware wallet is perhaps the most important set of words you can ever think of.

What happens when you loose it ?
If you loose your seed, ledger/trezor is not responsible, and any coins on the addresses generated by those seed will be lost forever.

Can ledger/trezor support find your seed ?
No, they cannot find the seed because, the seed is generated randomly from BIP-39 wordlist which has 2048 words.
So the total number of permutations possible are (2048P24, selecting 24 words out of 2048, order matters so permutations)
25,892,008,055,647,400,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000
That is a lot of combinations and nobody can even accidentally guess it.

How do you store your seed ?
Simple, write it on a piece of paper and store it somewhere really really safe. If possible buy a fireproof envelop and put the paper in it. Fire is the enemy of paper.
1-copy is not enough, let`s say, if your house catches fire or a child or your pet tears it up, it sounds insane but, cases have happened where people have lost their seeds due to some unfortunate incident.
So, try to make 2 copies and store them at 2 different locations, that works the best.

Technically anybody who gets your seed technically gets your coins, so extra care needs to be taken.

Storing on the internet/email id is a big no no. That is the worst thing to do, because everything connected to the internet is vulnerable.

Also, if you could encrypt the seed in some easy way, then go for it.
If somebody gets 23 words of your list, still they get nothing, unless they figure out the 24th word, or they figure out the right order, or still better it is next to impossible.
Encrypt it, but not too much, make it easy for you to work the encryption math but difficult for the hacker.

Example:
you can choose to memorize the first and the last words of the seed which is an easy task and keep the remaining 22 on paper, so anybody who gets those 22 words still has nothing.
or
you can choose to swap the first word with the 4th word on the list so the person still can`t do something and while entering you know what is the actual first word or the 4th word depending on what you swap.

Basically, let's hope we never loose our seed, make sure there is 1 person in this world whom you trust and with whom you share the seed in case of a mishap, so your loved ones get the coins safely. So, if a mishap happens they can access the coins or seek help from someone and get those funds. What is the point if our own family doesn`t get the access to these coins ?

Importantly, don`t think of working on more than 1 seed, because that will make things more complicated.

There are many ways to save your seed, and you can get more innovative with your own ideas, kindly let me know in comments if you have an easier and a trickier idea.

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I'd like to suggest one more way to keep the copy of seed words - in an encrypted folder volume. Like one created with VeraCrypt. When it's encrypted, we can safely store it (and other super secret files) online at Google Drive etc.

There's a bit of a learning curve when first using VeraCrypt. But anyone with average intelligence will figure it out.

One tip from my experience with encryption: use a password/passphrase that you are confident you will remember, even after several years. Or can likely guess should you forget. I had used very strong passwords which I felt I "should always remember". But over time, I forgot! These strong passwords kept out not only hackers but myself too! :)

Oh, and upload a copy of VeraCrypt too to the online site, and USB where you keep a backup of the encrypted word seed file.

I will check VeraCrypt

Long time since I spotted a useful cryptocurrency post on Steemit.

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