If you’ve ever set up a hardware wallet, you’ll know that you’re given a list of words. This list, usually consisting of 12 or 24 words, is called your recovery seed phrase. This recovery seed phrase is crucial because it allows you to restore access to your crypto if your hardware wallet is damaged or lost. If someone else gains access to your recovery seed phrase, they can steal your crypto.
How should you handle your recovery seed phrase wisely? Here are some guidelines.
Best Practices
- Trust only your hardware wallet: You always see the recovery seed phrase through your hardware wallet during setup. It is never known beforehand and is never included in the box. The PIN code is set by you and is also never pre-set.
- Write it down the old-fashioned way: Write your recovery seed phrase down with pen and paper. Hardware wallets often include cards for writing this down. Number the words correctly; the order is very important.
- Avoid digital storage: Never take a photo or create a digital file of your recovery seed phrase. Also, don't save it in a password manager.
- Be careful of your surroundings: Watch out for cameras and microphones that could record your recovery seed phrase and pass it on to malicious parties.
- Correct order: The order of the words is important. So number the words in the correct order.
- Secure storage: After you have tested the recovery seed phrase on paper (see below), store it on a SOLIDHODL metal plate for extra security.
How do I know if my recovery seed phrase is correct?
You want to be 100% sure that your recovery seed phrase is correct. Otherwise, you risk unpleasant surprises when restoring your wallet. Some hardware wallets, such as Ledger and Trezor, offer the option to perform a recovery check. Here, you enter the 12/24 words into the hardware wallet, which then indicates whether the words match the private key on the wallet. If you don't want to use this function or your wallet doesn't have this option, follow these steps:
- Read carefully before setting up a new hardware wallet.
- Write down the recovery seed phrase correctly and in the correct order.
- Perform a test transaction: Send a small amount to an address you created with your hardware wallet.
- Reset your hardware wallet: This can often be done most easily by entering the PIN code incorrectly a number of times.
- Perform the recovery process: Choose "restore" or "recover" and enter your recovery seed phrase into your hardware wallet.
- Check the test transaction: If you can see the test transaction after the recovery process and can send it to a new address, you know for sure that you have noted the recovery seed phrase correctly. This is very important. If you discover an error now, you can correct it in time. If you skip this step and your recovery seed phrase contains an error, you may lose your crypto forever in the future.
Safely storing larger amounts
Once you are sure that the recovery seed phrase is correct, you can confidently put larger amounts on your hardware wallet.
Create a backup - protect your words
Think about how to create a backup of your recovery seed phrase (12/24 words). Writing down the recovery seed phrase on paper is a good first step, but we recommend punching the words into metal with a SOLIDHODL.
Want to learn more about crypto security?
We believe in sharing knowledge to prevent as many scams as possible.
Do you have any questions? Contact us.
