The first cryptocurrency guideline is to never reveal your wallet seed phrase with anybody. Ever.
Three Types of ‘Secret’ Wallet Security
Most conventional technology firms need customers to register an account before they can access a service. Signing up usually entails providing your personal information online or via a smartphone app. This data is then often kept on a company-owned server.
However, with the emergence of blockchain technology, a new method of securing user data has emerged.
A normal cryptocurrency wallet does not demand any personal information from the user. It instead depends on three sorts of “secret” to keep the wallet and its related accounts private, safe, and secure.
These are the seed phrase, password, and private keys.
The Seed Expression
When exploring the world of cryptocurrencies, you will undoubtedly come across the term “seed phrase.”
A seed phrase is a random combination of words created by a cryptocurrency wallet during the initial setup process. These words, and the sequence in which they occur, comprise the code required to open a wallet.
The seed phrase may be referred to by a different name at times, but it performs the same precise job.
For example, MetaMask, one of the world’s most popular wallets, refers to this as the Secret Recovery Phrase (SRP).
The seed phrase is produced cryptographically when the wallet is created, and only the user has access to it. This implies that not even the firm has authority over the wallet.
Non-custodial wallets are those that offer users access to the seed phrase since only the user has access to this code.
Whoever owns the seed phrase has complete power over the wallet. As a result, it should be maintained in a secure location.
You can jot down your seed phrase on a piece of paper and keep it somewhere safe, out of sight of prying eyes.
Take note: Under no circumstances may you expose your Secret Recovery Phrase to anybody. If someone requests it, they are most likely attempting to steal your money.
The Security Code
The password is much simpler than the seed phrase. This is due to the fact that it is only utilized to safeguard the wallet application itself.
When you access the app on your in-browser extension or smartphone, you will be required to enter your password.
It provides an additional degree of security for your crypto valuables.
The Personal Keys
A private key is a string of letters and numbers that grants access to cryptocurrency assets kept in a wallet.
Some wallets, like MetaMask, allow users to create several accounts within the same wallet. It is worth noting that each account has its own private key.
While the seed phrase is used to recover a complete wallet and all associated accounts, a private key may only be used to import one account.
The private keys, like the seed phrase, should be kept secure.
You will almost certainly come across fraudsters when surfing the internet who will attempt to steal your private keys.
Keep in mind: Never give out your private keys to anyone.
