The unbelievable ascent of virtual currencies has become a watershed moment in technology and finance. Many more cryptocurrencies entered the market after Bitcoin's success. Simultaneously, the spread of cryptocurrency exchanges and wallets expanded their availability. You'll hear a lot about seed phrases if you keep crypto for any length of time. That's because keeping your crypto investments safe from hackers is impossible without the seed phrase. This article provides a comprehensive introduction to seed phrases, answering frequently asked issues regarding their functionality, security, and applications.

What's A Seed Phrase Exactly?

Also called a recovery phrase, a seed phrase is a string of random digits generated by a crypto wallet algorithmically when you set it up. It can be utilized as an emergency backup if you require access to funds in the crypto wallet. Your phone gets lost with the mobile crypto wallet, your computer malfunctions and it has the browser you used to log in, or your hardware wallet takes its last breath. Either way, your recovery phrase can help you establish a new crypto wallet on the hardware device, browser, or cell phone and recover access to Cryptocurrency.

How Do Seed/Recovery Phrases Work?

All crypto wallets generate seed phrases of 12-24 words during setup and instruct users to note down digits in order. These words are randomly selected from a list. Most crypto wallets utilize the "Bitcoin Improvement Proposal Number 39 (BIP39)" standard with 2048 words. To use recovery phrases with wallets, choose an option that says restore through a seed phrase. Your wallet will allow you to input the entire recovery phrase in sequence. When you enter the phrase correctly, your Cryptocurrency will be inside the wallet. Recovery phrases can also work with other blockchain digital wallets, which follow a similar standard. For instance, Trust Wallet and MetaMask utilize identical standards, such as BIP39. This helps you transfer your crypto from each other safely and quickly.

What Does The Recovery Phrase Look Like?

Recovery phrases are built using the 2048-word list. Instead of numeric passwords with a range of digits, seed phrases are groups of 12-24 randomized words like "iron", "river", "one", "rich" or "eager." Using words rather than random letters and numbers provides ease and convenience – users can easily remember and type in words, leaving little room for error. Moreover, it's increasingly complex to crack open the vast array of recovery word combinations, making it a perfect and safe choice.

Are Private Key And Seed Phrase The Same?

Although the private key differs from the seed phrase, both can grant access to Cryptocurrency. The private key – a cluster of alphanumeric characters – helps secure transactions by verifying your crypto ownership. The wallet controls it, so you won't need to place it manually. On the contrary, your recovery phrase corresponds to the private key. If somebody gets access to your recovery phrase, chances are they can manage private keys and perform transactions.

How To Store A Crypto Seed Phrase Safely?

Believe it or not, a crypto recovery phrase in the wrong hands can adversely damage your portfolio, so make sure it's safe and secure. Listed below are a few killer tips to protect your crypto seed phrase:

Use Paper Wallets

While paper is a relatively destructible material, it's still one of the most effective ways to secure seed phrases. It'd be best to write it down on paper and place it somewhere safe where nobody else has access. You can print it out or jot it down based on your preference and convenience. Also, ensure to laminate the paper so it can withstand wear and tear and water damage. Note: A water and fireproof safe can be perfect storage for keeping copies of your crypto seed phrases.

Use Metals

In addition to paper, you can engrave private keys and seed phrases on metals, especially steel plates, for added security and safety. Unlike paper wallets, metals have more durability and reliability. For instance, Cryptosteel Capsules, Keystone Tablets, and Billfolds enable you to protect seed phrases against unwanted conditions and severe disasters like floods, earthquakes, fire, etc.

Use Hardware Wallets

Hardware wallets such as Keepkey, Ledger, and Trezor help store your private keys and seed phrases securely. They're vital components of the blockchain ecosystem and provide utility and security when interacting with blockchains. They provide much safer options to keep your sensitive information offline – hackers won't be able to access your data.

Split Seed Phrases into Various Parts

Another effective way to keep seed phrases safe is to split them into two or more parts. Once you split the phrase on various papers, store them separately at secure locations so that no one can access the entire phrase but you. Note: Make sure to number your papers to prevent sequence alteration.

Avoid Keeping Digital Copies Of Your Recovery Phrases

Anything kept online, especially confidential data, can be accessed effortlessly. The internet (or the online space) isn't safe and secure as many think. According to one report, over 15 million data records get exposed through data breaches. Moreover, 20 data breaches happen every day. This shows how digital spaces are vulnerable to various threats and attacks. So, avoid taking a print, picture, or even saving seed phrases on digital platforms – hackers can hack your systems and access confidential information.

Wrapping Up

Now you know what seed phrases are and how crucial they can be for your Cryptocurrency assets. So, it's best to keep them in secure places. Follow the tips to the T to protect your Bitcoin investments against any unwanted situation and disasters like fire or earthquake.  

New users and crypto enthusiasts alike have shown an interest in NFTs, and there's a good reason. After being released to the public in 2021, non-fungible tokens had a meteoric rise in popularity. Sales of NFTs reached a staggering $25 billion in 2021, attesting to the market's impressive rise. But hackers, scammers, and other bad actors are increasingly drawn to NFTs as their popularity and value rise. Users' interest in NFT investments may be influenced by the various thefts and hacks involving NFTs. Therefore, it may be a good idea to follow the guidelines and best practices for NFT security outlined in this discussion.

What Are NFTs?

Non-fungible tokens are digital currencies that represent specific assets on blockchain networks and cannot be exchanged for other tokens of the same type. Tokens are typically used in the context of digital material like video games, music, and artwork. Non-fungible tokens may represent non-digital assets, such as real estate or collectibles. You can also buy these tokens as rare investments and mementos. NFTs can prove digital and physical asset ownership. This suggests that NFTs may find widespread use in various sectors and applications where value benefits are anticipated. Depending on the quality and rarity of the NFT, prices can be bought and sold for millions. For instance, digital artist Beeple made over $69 million from selling a single item of NFT art.

Why Is NFT Security Important?

The safety and protection of NFTs are crucial because any malicious actor can steal them. Without appropriate safeguards, your NFT wallets could be susceptible to phishing attempts and cyber-intrusion. More than $600 million was stolen from Sky Mavis, makers of the famous NFT-based game Axie Infinity, in March 2022 by malicious attackers. The cyber attackers emptied people's digital wallets using stolen secret keys. If you want to put your money into NFTs, you must be well-versed in the best practices for protecting yourself during every step of an NFT trade. Inadvertently revealing sensitive information like login credentials could lead to losing essential resources. Additional security dangers exist for your non-fungible tokens.

10 Best Practices for Protecting Your Non-Fungible Tokens

Using NFTs can be risky, but there are measures you can take to protect yourself and your money.

1.      Keep Your Keys to Yourself

Never share information about your cryptocurrency wallet. These keys and any associated recovery passphrases should be kept secret. These passwords are private and should not be shared with anybody.

2.      Make Secure Passwords

Make sure that your NFT accounts and bitcoin wallets have robust passwords. One more precaution that may be taken to ensure the security of NFTs is using two-factor authentication. Biometric authentication methods like facial recognition and fingerprinting make identity theft more challenging. Use the Authenticator app for optimal protection.

3.      Use Trustworthy Coin Wallets and Markets

When it comes to avoiding fake NFT exchanges, setting up your NFT wallet with a reputable company is your best bet. The security offered by hardware wallets is unparalleled. For example, you can use a cryptocurrency wallet service like Coinbase, Ledger, or Exodus. Additionally, OpenSea, the preeminent NFT marketplace, must be at the center of NFT security best practices.

4.      Enable Security For New Cryptocurrency Wallets

If you wish to store your NFTs in a reputable crypto wallet, choose one that offers ironclad security. Security procedures are usually not enabled when setting up a wallet, so it'd best to ask about it before you sign up and allow them immediately. Options for firewalls and two-factor authentication to protect against phishing attacks are necessary security features of NFT wallets.

5.      Don't Go Clicking On Links In DMs

Creative scams via DMs (or direct messages) are a growing threat to NFT users. Hackers may create fake websites to make contact with a target and send the URL to them. Sending out links in direct messages at random is always a red flag.

6.      Protect Your Seed Phrase

Without stressing seed phrase safeguards, the summary of NFT security best practices would be insufficient. It's important to remember that your NFT wallet's seed phrase can be used to reset a lost password. Criminals can replicate your wallet on another computer and steal your private transaction keys if they learn your seed phrase. As a result, you must never insert your seed phrase into registration forms or other applicable sections. It would be best to take the necessary precautions to secure your seed phrase. Don't store it on a device that can access the internet. Instead, you may try putting it on durable material like paper or metal and hiding it away.

7.      Keep Up with the Times

Keeping up with the most recent news in this area is the best defense against NFT security issues. You need to know what's happening in the NFT industry and be aware of the most recent security breaches in the press. Maintain an up-to-date understanding of potential security threats in your environment.

8.      Avoid Falling for Fake MetaMask Sign-In Requests

It is common practice for scammers to use bogus Metamask user interfaces to dupe victims into giving up their private seed phrase. This is the style of page you'll see after clicking on a link in a false direct message (DM), most commonly from a fake Collab account. Clear your browser's history of any pending requests before signing in to MetaMask for real, and then log in when you're ready using the extension.

9.      Never Save Your Seed Phrase Anywhere Online

Avoid saving your seed phrase in a digital format. Anywhere. This is a straightforward and easily avoided route to a compromised seed phrase. Please don't make it simple for hackers to break in. Put your seed phrase in writing and save it in a secure location. Never keep your seed phrase or any other private data on your computer's persistent storage.

10.  Take Advantage Of A Virtual Private Network

Get a virtual private network (VPN) to hide your online footprint. ExpressVPN is the most reliable virtual private network (VPN) available today and is highly recommended by us. To get started with NFT VPNs, read our post on the top options.

Conclusion

The blockchain can now reach a wider audience thanks to NFTs. Investment prospects, brand partnerships, digital art collections, and the potential to boost the economy of creators are all made possible by these platforms. It is possible to take advantage of flaws in NFTs in the same ways that other assets may. Scammers are skilled in their trade, and you may quickly become a victim if you aren't careful. Those working on NFT initiatives need to be aware of the dangers and how to lessen them for the benefit of society, whether those dangers come from vulnerabilities in the smart contract, the market, or social media accounts. Safeguarding these assets by conducting security assessments and employing security best practices across an NFT project is crucial. Keep your guard up and always verify who you're talking to. That's key to ensuring that NFTRs remain safe no matter how big the threat is.