We cannot hide from the fact that more than a billion dollars of crypto were lost in 2018 alone. Some users reportedly had their funds hacked or scammed. Others just couldn’t access their funds, simply because, they lost their private keys or recovery phrases. These cases have one thing in common- poor private key management.
This piece is all about a new way of securing your private keys and recovery phrases. A new method that has been tested, tried and trusted to secure your cryptocurrency.
But before we get to the point. It’s important we explore the basics of private keys and recovery phrases so that we are in a better position to understand why their security is of utmost importance.
What Are Private Keys?
In simple terms, private keys are the most critical piece of information in crypto. Without it, you won’t access your digital currency. It’s just like your pin in your debit card, you cannot access the money in your bank account without the pin, same for cryptocurrencies.
If for some reason, you forgot your pin, you call or visit your bank account and get a new one, and you regain access to your bank account. With cryptocurrency, it’s different. There is no central authority like a bank whatsoever that can help you reclaim access.
If you lose it, that’s it. There is no one to help; forget your coins.
What Is A Recovery Phrase/ Recovery Seed?
Recovery seeds are used for crypto wallets like Trezor and Nano. They are easy to read as compared to private keys. They function to enable crypto wallets to store multiple private keys.
They best suit users with various cryptocurrencies, say Bitcoin, Ethereum, Litecoin, etc. Now, these cryptos, each have their private keys, and you have to secure the keys right? Phrases make things easier. Instead of you saving all these keys differently, simply back up your ledger wallet.
Storing Your Crypto
Exchanges- Handing your crypto to a third party is by far the riskiest way of storing your crypto. The custodian, the exchange holds your crypto in his wallet. They have control over your recovery phrases and private keys. Recent times have proven that providing exchanges the authority over your crypto is a bad idea. Exchanges are being hacked, left, right and center and are losing client’s funds. Thus, storing longtime holdings in exchanges is highly discouraged.
Software wallets- There are several free to download software wallets. E.g., Jaxx, Exodus, Electrum, just to mention a few. Software wallets do generate private keys. You can as well make a backup of the wallet and save the recovery phrase offline. Now, that’s a better choice than exchanges, though they offer the risk of malware and viruses which make the wallets hackable.
Hardware wallets- Hardware wallets are the best option so far. They are the solution to the software wallet problem. They are stand-alone and don’t need an internet connection. It’s a massive step towards the security of your crypto because they are offline and cannot be hacked. You only risk losing your recovery phase. Which brings us to the last line of defense, the CRYPTOTAG.
Immortalize Your Recovery Phrase In Titanium?
CRYPTOTAG is made for extreme conditions like high temperatures, intense pressure, corrosion, etc. All these conditions have been tested, and the results are positive. The 6mm titanium can be trusted.