Post by sumiseo558899 on Nov 4, 2024 10:33:20 GMT
What is important to know?
A cold wallet protects your crypto assets at the moment of use, which makes your transactions safe, isolated from the Internet and, accordingly, from viruses and hackers. You can break it or lose it, but the money will not go anywhere. The recovery phrase is the only key to your safe with money. But if someone knows your seed phrase, they can open your balance on a separate device and withdraw money.
For example, to guess a seed of 12 words, you need to go through 2048 words to the power of 12. And to guess a seed of 24 words, you need to go through 2048 to the power of 24.
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FAQ
What is the difference between
content writing service a seed phrase and a mnemonic phrase? Nothing. They are synonyms.
Who creates the seed? Where can I get the seed phrase? When you first set up/launch/create a crypto wallet, the seed phrase is generated by the computer.
Can I come up with a seed phrase myself? No. A seed is a complex mathematical encryption where the last word is directly dependent on the first 23 words.
What is BIP39
BIP39 (Bitcoin Improvement Proposal 39) is a standard used to create and manage seed phrases in cryptocurrency wallets. It defines the process of generating mnemonics (mnemonic phrase), which is a sequence of 12, 15, 18, 21 or 24 words used to create and restore cryptocurrency wallets. These phrases are generated based on a random set of bits and can be converted into a seed - a binary code that is used to create master keys and subsequent private keys. BIP39 significantly simplifies the process of backing up and restoring wallets, making it more convenient and secure for users.
For advanced users
Some cold wallets (Ledger, Trezor) have an additional function – 25 word.
This is a word that you make up yourself, it can be up to 100 characters long. Thanks to it, you will create a wallet in the wallet, so to speak, a hidden balance, to which you can transfer most of the funds. You can open this balance using a 24-word recovery phrase and separately enter the 25th word.
That is, if an attacker steals your seed phrase, he will only be able to see zeros or some small amounts, but the rest of it will be protected by this 25th word.
Reference: The most famous cases of cryptocurrency theft through gaining access to wallets due to a stolen seed phrase:
Famous actor Bill Murray had 119.2 ETH stolen from him after he raised it for charity. It was later determined that the hackers had gained access to the wallet through a seed phrase that they had managed to access.
The fraudulent project iotaseed.io, which provided users with a service for generating random seed phrases, actually stored information and subsequently, after the cryptocurrency was received by users' wallets, the attackers stole it. In this way, more than $4 million of clients' funds were withdrawn.
What is a seed phrase for a crypto wallet?
Physical and digital storage options
Some people think that the best option for storing the seed phrase is - on a smartphone, PC, Google Docs. However, this is not a good idea, since hackers can quickly find it using software. In addition, if the phone or PC breaks down, you can lose access to it forever.
The safest way is to store your seed phrase on physical media in a secure place:
on paper
in metal wallets (that is, on metal sheets with special cells for typing words)
Attention: The least secure option is electronic media – disks and flash drives.
Conclusions
If you are going to create a crypto wallet and use cryptocurrency, you need to be very responsible about the seed phrase . Choose the method of storing it consciously, taking into account all the pros and cons described.
A cold wallet protects your crypto assets at the moment of use, which makes your transactions safe, isolated from the Internet and, accordingly, from viruses and hackers. You can break it or lose it, but the money will not go anywhere. The recovery phrase is the only key to your safe with money. But if someone knows your seed phrase, they can open your balance on a separate device and withdraw money.
For example, to guess a seed of 12 words, you need to go through 2048 words to the power of 12. And to guess a seed of 24 words, you need to go through 2048 to the power of 24.
Lead Panda your reliable partner
Read more
Advertising
FAQ
What is the difference between
content writing service a seed phrase and a mnemonic phrase? Nothing. They are synonyms.
Who creates the seed? Where can I get the seed phrase? When you first set up/launch/create a crypto wallet, the seed phrase is generated by the computer.
Can I come up with a seed phrase myself? No. A seed is a complex mathematical encryption where the last word is directly dependent on the first 23 words.
What is BIP39
BIP39 (Bitcoin Improvement Proposal 39) is a standard used to create and manage seed phrases in cryptocurrency wallets. It defines the process of generating mnemonics (mnemonic phrase), which is a sequence of 12, 15, 18, 21 or 24 words used to create and restore cryptocurrency wallets. These phrases are generated based on a random set of bits and can be converted into a seed - a binary code that is used to create master keys and subsequent private keys. BIP39 significantly simplifies the process of backing up and restoring wallets, making it more convenient and secure for users.
For advanced users
Some cold wallets (Ledger, Trezor) have an additional function – 25 word.
This is a word that you make up yourself, it can be up to 100 characters long. Thanks to it, you will create a wallet in the wallet, so to speak, a hidden balance, to which you can transfer most of the funds. You can open this balance using a 24-word recovery phrase and separately enter the 25th word.
That is, if an attacker steals your seed phrase, he will only be able to see zeros or some small amounts, but the rest of it will be protected by this 25th word.
Reference: The most famous cases of cryptocurrency theft through gaining access to wallets due to a stolen seed phrase:
Famous actor Bill Murray had 119.2 ETH stolen from him after he raised it for charity. It was later determined that the hackers had gained access to the wallet through a seed phrase that they had managed to access.
The fraudulent project iotaseed.io, which provided users with a service for generating random seed phrases, actually stored information and subsequently, after the cryptocurrency was received by users' wallets, the attackers stole it. In this way, more than $4 million of clients' funds were withdrawn.
What is a seed phrase for a crypto wallet?
Physical and digital storage options
Some people think that the best option for storing the seed phrase is - on a smartphone, PC, Google Docs. However, this is not a good idea, since hackers can quickly find it using software. In addition, if the phone or PC breaks down, you can lose access to it forever.
The safest way is to store your seed phrase on physical media in a secure place:
on paper
in metal wallets (that is, on metal sheets with special cells for typing words)
Attention: The least secure option is electronic media – disks and flash drives.
Conclusions
If you are going to create a crypto wallet and use cryptocurrency, you need to be very responsible about the seed phrase . Choose the method of storing it consciously, taking into account all the pros and cons described.