One of the best things that have ever happened in the world of cryptocurrency is for people to be able to store their money with the aid of a seed key or a private key. On the worst part, the storage and the security of your wallet passphrase are vested in your own hands.
If you happen to lose your private key or seed key, there is no bitcoin customer care service hotline with which you can call to recover your funds. So many people have lost millions of dollars of bitcoins simply because they lost their private keys.
According to recent research, it was estimated that about 4 million bitcoins (out of a possible number of 21 million bitcoins) are unrecoverable because of missing or lost private keys. If you do not own a private key, you may not know about its importance or that you do not own altcoin or bitcoins.
While some people store their wallet keys or private keys at the back of their head (brain wallet), some other people make use of hardware wallets such as Ledger Nano Wallet, and some people write down their seed key on a piece of paper (this is called a paper wallet).
Whatever type of wallet you use, be it software, hardware, paper or brain wallet, you will get the best ways by which you can use to store your seed key or your cryptocurrency wallet private key.
The safety and storage of private key lie on one major principle; which is how you can securely store and keep a particular set of figures made up of numbers and letters. Your private key may look like this; 1ATIKUa6N4Jz3uvNExmE72ikXhwF6kZy. If you know how to create a secured muti cryptocurrency wallet, you can as well store such private key and protect it with a passphrase which is the BIP32 encryption.
Top 7 Tips For Storing Your Private Keys
Here are our best seven tips for storing and keeping your cryptocurrency wallet keys safe and secured.
1. Use A Hardware Wallet
The most popular and commonly used crypto wallets are the hardware wallets. Hardware wallets are very popular for a reason; which is because of the look USB drives. Unlike a USB drive, the hardware wallet is made to store and keep bitcoins, EOS, and other cryptocurrency coins.
When launched, these devices have the power to generate private and public keys using a mnemonic phrase or seed words. The Ledger Nano S wallet and the Trezor wallet made it on our list of the best hardware and software EOS wallets because they are the two common hardware wallets available today, although, there are other wallets springing up.
2. Have A Mobile Wallet Or Desktop Wallet For Storing Small Fund Storage
If you are the kind of person who uses crypto constantly and regularly, using a hardware wallet would be inconvenient for you. Hardware wallets can help you in a great deal by keeping your money and storing your crypto coins but they do not have a system that will enable it to be too accessible and used frequently.
To counter this problem, you are to consider using a desktop wallet or mobile wallet. Good examples of the mobile wallet are Mycelium and Electrum.
3. Do Not Store or Keep Private Keys Online
Your private keys should not be stored online. The reason for this is that you cannot guarantee what would happen in the next minute, it can get hacked or compromised; even if it is your OneDrive, Google Drive or your Gmail account, do not attempt to store your private keys online.
4. Store Private Keys In An Encrypted Storage Device
Even if you do not have the finances to purchase a hardware wallet, you can actively get another solution which is for you to make use of an encrypted storage device (which is like an offline flash drive).
Even if your encrypted storage device gets stolen, the cybercriminal or hacker will have to break the encryption. Although, this may not be the perfect solution, but, it is far better than storing your private keys in an unencrypted storage device or keeping your private keys online. After keeping your private or seed keys in an encrypted device for a period of time, you can purchase a hardware wallet to ensure maximum security.
5. Never Take A Screenshot Or Picture
At times, you may be tempted or moved to take a picture of your private key and have it as a backup option. It might sound good and reasonable but this is a bad idea to use; taking a picture or having a screenshot of your private keys exposes your funds to hackers and thieves.
A screenshot can be taken on your mobile phone and goes viral in the next minute. Avoid taking unnecessary photos of your private keys is another safety measure you should follow.
6. Write Recovery Keys Or Private Keys In Your Will
As human beings, no one is certain of the next minute, most people pass on with properties, assets and millions of dollars in their bank accounts while their families and next of kin perish in hunger and poverty. After death, most people pass on their funds over to their loved ones.
You can talk to a lawyer to add it to your will in the case of uncertainties such as death. You might not expose the keys but give approaches and directions on how your family can find your private keys and have access to your crypto fortune.
7. Engrave Seed Phrases On Stainless Steel
Some crypto users simply write their private keys or seed keys on a piece of paper, and they store such paper in a secure place like in a safe or a drawer. It is nice to keep good storage of your items but however, these solutions are not perfect for you.
In the unfortunate event of a house fire or a flood, the details on your paper wallet could be lost and destroyed. This is why some crypto experts recommend the use of stainless steel.
When you engrave your seed phrase or your private key on stainless steel, you don’t have to worry about it getting destroyed.
There is no best way to store your crypto coins; every method is prone or vulnerable to attack. Even the brain method isn’t as secure as it seems because you might possibly reveal your private keys in you get tortured or threatened. With these tips, you should be able to ensure maximum security of your private keys and crypto fortune.
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