Security of crypto wallets. Part3️⃣

In the first part, we analyzed open and closed source wallets, the second part was devoted to different types of wallets ✍️

Today we will talk about seed phrases, passwords and backup files.

💻 Almost any wallet ask you to save “12-word phrase” when creating an account. This is called a “mnemonic phrase”, “seed” or “mnemonic seed”.

Seed phrase is a private key, only encoded in usual words. So it’s the same thing, only in different vestments.

Using this service, you can convert your seed phrase to a private key online.

The phrase is the key to your cryptocurrency. If you lose it or if someone gets hold of it, you will lose access 🚫

FORSAGE doesn’t recommend keep the seed phrase on your devices and electronically, the best option is paper version in multiple copies. Someone even divide the whole phrase into 3–4 parts. If the attackers find several parts, you will not lose the account access.

Some wallets allow you to create an “extended seed”, where not 12, but 14, 18, and even 24 words. There’re some wallets that immediately give a seed of 24 words, but the user is not given to change the words and their order.

❗️ Why so many words? Because, this is billions of times more options than if there are 12 words in the side. More words — higher the security in the brute-force attack.

So, you have saved and hidden your seed phrase. Now wallets ask you to create a password. Many wallets limit the password to 4 or 8 characters, in this case it is better to leave the device at home. Your passwords must be more complex than 1234, qwerty.. or 98765432.

🔎 In some wallets, such as Token Pocket, the private key is stored locally as an encrypted file and decrypted with a password by the user.

Convenient, but not safe. If the backup file is stolen, the attacker will quickly get access to your wallet

Do not ignore safety!

More information about the security of wallets Instagram account FORSAGE



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