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How Do You Store Crypto Passwords?

How Do You Store Crypto Passwords?

The growth and popularity of crypto are rising every day, especially in mid-developed and developing countries. Several service providers are available in the industry to introduce people to the world of crypto and ease their journey.

But, as the adoption rate has increased, the issue of online hacking and theft has also increased. And so, it has become an important concern to create a strong password that will protect your crypto wallets and their assets.

But the primary question is how to store your crypto passwords and what mistakes you should avoid. So, in today’s article, we will discuss how one can store crypto passwords securely and protect their valuable cryptos. Let us begin.

Should I Use A Password Manager For Crypto?

Before discussing the topic, let us understand what a password manager is. In simple terms, it is a form of crypto password storage that will safely store and handle all the online credentials. And it will also generate passwords, and these passwords are stored in an encrypted database which will get stored behind a master password. Once all your account usernames and passwords are stored inside the vault, the master password is the one that you can use to retrieve the vault. By entering the master password, it will unlock the password vault, and you can then retrieve the usernames and passwords stored in it. Password managers make login procedures quicker and safer. All cryptocurrency exchanges recommend 2-Factor Authentication (2FA) as an additional layer of security for your wallets. Even if a third person gets your password, they cannot access your account and steal your coins.

What Is The Safest Crypto Storage?

A crypto wallet has a private key that the user uses to allow crypto transactions. When the wallet has no cryptos, they are kept on a blockchain. Users must use the wallet to purchase, spend or trade with their crypto. There are several safe crypto storage options available.   
  • Hardware Wallet

A hardware wallet is a form of a physical device that records the private key. It is simple as a piece of paper or metal with a recorded key. These are also known as crypto paper wallets or crypto steel wallets. Several hardware wallets can connect your devices with USB, Bluetooth, or an app like ELLIPAL Titan, NGRAVE, SafePal S1, and BitBox02.  
  • Software Wallet

Software wallets are browser extensions or desktop, mobile, and web apps. There can be various designs and functions of software wallets. Depending on the crypto you want to trade, you can use software wallets like Exodus, Atomic Wallet, BitGo, and Jaxx Liberty.  
  • Custodial Wallet

Custodial wallets are controlled by crypt exchanges and authorize the users to store crypto easily in them. Users need to simply log in to the account and use their crypto. Some well-known examples of Custodial wallets are Free Wallet, Binance, BitMex, and Bitgo.   Many crypto wallets use crypto seed phrase storage, known as mnemonic recovery or secret phrase, to generate private keys. These phrases are easy to note down and save. But these phrases and keys aren’t linked to a particular application or device.  One can use the exact phrase to access their wallet from hardware and software wallets. Hence, anyone who knows the phrase can access the wallet and associated crypto assets. Currently, hardware wallets are considered the safest option for crypto seed storage. It is safe because one can keep their crypto wallet offline like a cold wallet. When your cryptos are stored offline, you don’t have to worry about any hacker or malware getting into your wallet. The paper and metal hardware wallets are also considered safe options for storing seed phrase copies. 

Where Should I Store My Crypto Keys?

Since writing down the keys is not always practical, most wallets now provide seed words as an alternative to private keys. Below, we have mentioned some top storage methods to store your crypto keys.   
  • Hardware Wallets

Hardware wallets are considered the safest method to keep private keys safe. A hardware wallet is like a flash drive device specially designed to store your crypto assets. These wallets generate public and private keys with mnemonic phrases or seed words.   
  • Offline Flash Drive

The second option to store crypto keys is the offline flash drive. One can temporarily store private keys or seeds in an offline flash drive. You can use offline flash dives, which encrypt and store the data. It will add an extra security layer for accessing your crypto.  
  • Cryptosteel

You can consider crypto steel an effective method to store your private keys. Cryptosteel is a stainless steel tool that permits users to store up to 96 characters of confidential data. This confidential data can be your private key, always less than 96 characters. It is one of the safest methods to handle private keys since crypto steel is resistant to fire and water.   
  • Paper Wallet

The last option in this list is paper wallets. It is a good alternative if you don’t trust hardware wallets or crypto steel. A paper wallet is free, and a piece of paper prints a pair of public and private keys. But, to make it even more secure, you can get it laminated and safely store it in a storage vault. 

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How Do I Get My Crypto Password?

If you ever think about what will happen if you forget your crypto password and stress over what will happen next, don’t worry; there is always a way to recover it. By following the steps outlined below, you can recover your crypto password. 

Step 1: The very first step is to launch the crypto app you are using.

Step 2: Go to the settings and click on ‘forgot password.’ 

Step 3: Now, provide the basic information displayed on the screen. 

Step 4: Enter the OTP received via SMS and Email

Step 5: Now, open the email and search reset email. 

Step 6: Lastly, click on the login button given to set a new password for your crypto account.

Is A Secure Password Generator Safe?

Sometimes we find it confusing to be told to create a longer, more secure password. However, because most people find it challenging to generate a combination of alphanumeric characters and symbols, some rely on using password generators. A crypto password generator is completely safe and easy to use. It provides you with a potent password combination. But we still recommend you be cautious while choosing the right password generator. If it’s becoming difficult to come up with a robust character combination, password generators are always the best options. Some of the best and safest password generators include LastPass, Norton Identity Safe Password Generator, Password Ninja, and MSD Services Password Generator.

How Do You Store Crypto Seed Phrases?

A seed phrase consists of 12 to 24 random words. But, it is almost impossible for any external user to guess this phrase and access your crypto funds. However, if someone finds your seed phrase, they will have quick access to your crypto assets. Hence, seed phrase splitting can be an ideal solution since cybercriminals cannot access these funds if they do not have the entire seed word. Seed splitting involves separating the seed phrase into multiple sections and it will store each section safely at different places. One can do this physically and digitally. Yet, physical storage is generally safer since it eliminates the potential of cybercrime or system failure, which will ultimately result in the loss of crypto funds.  You can seed splitting and store them in several ways, but one of the best methods to store a split seed phrase is in a cryptosteel capsule or crypto steel plates.

What Is A Steel Crypto Wallet??

A crypto steel wallet is another cold storage wallet that securely backs up the recovery phrase to your other hardware wallets, ensuring you never lose access to your Bitcoins. Steel crypto wallets are free from corrosion and will protect your crypto assets against physical threats or natural disasters. Steel wallets are resistant to fire, corrosion, rust, water, and even electric shocks and are highly safe for your seed phrases. Steel crypto wallets provide advanced security to store Bitcoins or Ethereum than software wallets which you get from crypto exchanges. Hardware wallets such as Ledger Nano X and Trezor T are renowned as steel crypto wallets.

Conclusion

Crypto wallets are like your regular money wallets; they must be kept secure. You can quickly transfer cryptos anywhere, and the crypto passwords are what gives you control over your assets. Such features also raise serious security concerns. At the same time, if handled correctly, these passwords can give high levels of security to your crypto wallets.

So, remember the tips mentioned above to ensure that your crypto assets are always well protected.