Whether you’re a crypto beginner or expert, it is absolutely essential to safely backup your seed phrase.
There are many ways to backup your seed phrase, but most of them are unsafe, for a variety of reasons.
In this article, we explore all of them, from worst to best!
Types of seed phrase backups
Taking a screenshot of your seed phrase might seem like an obvious solution, but it’s actually one of the least secure methods.
If your phone or computer is ever lost or stolen, someone could easily access your seed phrase and steal your funds.
If you get hacked, a savvy hacker could recognize the seed phrase and drain your wallet.
Writing it down
Writing down your seed phrase on a piece of paper seems to be what quite a few people are doing, but it’s far from safe.
Paper can get lost or damaged, and if someone finds it, they can take your seed phrase and again, steal your funds.
Saving your seed phrase to a USB drive is better than writing it down on paper, but it’s still far from perfect.
Your USB drive will need to be stored safely, and anyone who might happen to find it would be able to enter it into their computer.
You could encrypt the USB drive, but this encryption can be cracked by seasoned hackers, and anyone with the access code would still be able to use your USB drive.
Mark words in a book
Writing or marking the words down in a book is marginally better than using a USB drive.
If you lose the book, or if it somehow gets damaged, your seed phrase would be gone forever.
However, if someone finds the book and is able to decode the words, they are again able to take your seed phrase and steal your funds.
Saving your seed phrase in the cloud might seem like a good idea, but it’s actually one of the least secure methods.
If you use a centralized service like Dropbox or Google Drive, your seed phrase would be stored on their servers.
This means that if their servers or your account were ever hacked, your seed phrase could be compromised.
Several online shops sell stainless steel panels that can be used to carve your seed phrase on.
It’s true that carving your seed phrase on stainless steel is more resistant to damage than many of the other methods on this list.
Yet, it’s still not perfect.
If you lose the panel, or if it gets stolen, your seed phrase would be gone forever.
Some crypto users use online vaults to store their seed phrase. While this is certainly better than most of the methods above, it is not foolproof.
If the online vault is ever hacked or the company goes out of business, your seed phrase could be lost forever.
One example of this is Kirobo, which offers a centralized liquid vault that nobody has access to except yourself. In case you are unable to respond for a prolonged period of time after your heirs trigger your inheritance plan, it will be made accessible to them.
This solution is better than many shared above, but it is not based on smart contracts, or decentralized. Your private information is stored in their vault.
Another online vault which is partially smart contract-based is Fort Knoxster, still in development. It promises to store and distribute your private data without the use of a middleman, being highly customizable.
This solution has not been tested and audited yet. Because this solution lacks rigorous security testing and third party audits, you won’t be able to rest assured that your crypto is safely stored.
So is there a better solution than all the above? Well yes, there is.
A truly decentralized solution to safely backup your seed phrase
Safe Haven’s Inheriti® is the most secure way to safely backup your seed phrase.
Inheriti® is a decentralized backup and inheritance solution, that uses blockchain technology and military grade encryption to store your seed phrase in a secure and tamper-proof manner.
With Inheriti®, even if you lose your seed phrase, you can rest assured knowing that it will be safely stored by patented and audited technology.
Inheriti® is the only truly decentralized inheritance solution that helps you keep your seed phrase safe and sound.
How it works
Inheriti® uses a multi-signature approach to safely backup your seed phrase.
This means that you’ll need every encrypted share to access your backup.
The shares are stored on SafeKeys.
This makes it impossible for someone to hack into your account and steal your seed phrase. Getting access is impossible without having every SafeKey of the backup plan.
The beauty of a decentralized backup of your seed phrase
If you’re going to use Inheriti® to safely backup your seed phrase, it will have many advantages!
- It can’t be damaged, as your data is stored digitally.
- It can’t be lost, as long as you possess every SafeKey used for your plan.
- It can’t be hacked. Safe Haven’s tech has been audited and tested by the worlds’ best ethical hacker collective (Intigriti) and auditing platform (Red4Sec).
- Inheriti® is patented. This means you can’t find this decentralized technology anywhere else!
- Once a plan is properly set up, it will remain active for an indefinite period of time. This until the conditions for decrypting the plan are met.
- The plan is affordable.
- Safe Haven’s proprietary SafeKey technology is used to store the plan data. Future releases can be stored on your mobile device.
Disadvantages of using a decentralized backup
While the above ensures absolute top-level safety, using Inheriti® to safely backup your seed phrase is not as easy as just writing down your seed phrase.
You’ll have to do a bit more effort than the less secure methods shared above.
We promise however, that the effort you put into creating a decentralized backup plan will be worth it.