One of the best decisions you can make as a cryptocurrency investor is getting a hardware wallet. But like every other type of cryptocurrency wallet, there are security concerns if you are not careful. Here are the top three things that you should avoid as a hardware wallet user.
Revealing Your Private Keys:
Your private keys are essentially the ultimate forms of security. They must be kept secret all the time and revealing your keys to third parties is the same as giving them complete control over your cryptocurrency. Revealing your private keys can have severe consequences and it is important to have a backup of your keys as well in case of theft. There is currently no way to recover private keys on our own and if you lose your keys, your cryptocurrency is gone for good. This is why backups of your private key are very important and keeping your information private even more so.
Revealing Your Seed Recovery Phrase:
Your seed recovery phrase is essentially a means of letting you get access to your cryptocurrency in case you lose your passkey. A recovery seed is simply a list of words that you store in order to recover your hardware wallet. The information is stored in a software that generates the seed phrase and you need to write it down in a piece of paper and store it somewhere safe.
Since you are using a hardware wallet, it is important to note down your seed recovery phrase on a piece of paper and store it somewhere safe. This is to avoid instances of losing your seed phrase in case something happens to your computer. More importantly, storing information online can also have severe consequences in case your data is compromised. If someone else discovers your phrase your cryptocurrency can get compromised so you should treat your seed like a jewel.
Losing Your Paper Wallet
As we discussed above, you should backup your keys physically and save your passcodes and recover phrases offline. But what happens when you lose access to your hardware wallet as well as your paper wallet? That is something that should never happen at all costs. If you have your private keys memorized it should not be a problem but if you lose both your private and public keys there is little you can do. You should have more than one paper wallet backed up in two separate locations. If you own a large amount of cryptocurrency you should consider opting for a safe facility at your bank to keep your keys secure. You should by no means carry your paper wallet around to avoid the odds of misplacing it wherever you go.
These three security tips should help you get the most out of your time using hardware wallets. If you are looking for the most secure hardware wallet you can get your hands on, you should check out ELLIPAL’s offerings.