5 Tips for Storing Seed Phrases for Beginners and Intermediates

In an era where finance knows no borders, with Bitcoin transforming the world, the Seed Phrase is key to owning your digital assets. It's not just a random set of words; it is the master key that unlocks all the Bitcoin you have in your digital wallet, with you as the sole controller. There are no banks, no intermediaries, and no one can help you if you lose it or it gets stolen.

With the power that comes with this independence, the responsibility of protecting your Seed Phrase is paramount. This article will begin with 5 initial techniques for storing a Seed Phrase, ranging from beginner level for newcomers to intermediate level for those seeking greater security, to help you understand and choose the method best suited to your needs and expertise.

Beginner Level: Start with simplicity but security

 

1. Write it down on paper (Paper Backup)

• Details: This is the most basic and accessible method. Simply write down all 12 or 24 words of your Seed Phrase on good quality paper using indelible ink (e.g., oil-based ballpoint pen, permanent marker). Write clearly, legibly, and double-check for accuracy multiple times. Then, store the paper in a secure location where no one can access it without authorization, and protect it from factors that could damage the paper.
• Pros
  • Easy and free: Requires no special equipment or extensive technical knowledge.
  • 100% Offline: No risk of being hacked via the internet.
  • Easy Access: Can be used for recovery when needed.
• Risks
  • Low durability: Paper can be easily damaged by fire, flood, insects, or moisture.
  • Loss: If the paper is lost, your Seed Phrase is lost with it.
  • Unauthorized access: If someone finds the paper, they can immediately access your Bitcoin.
  • Errors during writing: Even a single letter error can make recovery impossible.

2. Use offline backup tools

• Details: These devices are often made from durable materials that can withstand various environmental conditions, such as stainless steel or titanium. Examples include Cryptosteel, Billfodl, or metal plates for stamping letters. You would stamp, engrave, or carve your Seed Phrase onto these materials, which typically come with slots for each letter, making it easy to arrange the Seed Phrase.
• Pros:
  • Highly Durable: Much more resistant to fire, flood, corrosion, and impact than paper.
  • 100% Offline: No risk of cyber attacks.
  • Long lifespan: Can store Seed Phrase for decades or even a century.
• Risks:
  • Cost: There is a cost associated with purchasing the device.
  • Loss: If the device is lost, your Seed Phrase is lost with it.
  • Unauthorized access: If someone finds the device, they can immediately access your Bitcoin.
  • Errors in recording: Even a single letter error in stamping/engraving can make recovery impossible.

Intermediate Level: Enhance security with encryption and splitting

3. Split the Seed Phrase into parts (Splitting Seed Phrase)

• Details: Instead of keeping all 12 or 24 words of your Seed Phrase in one place, divide it into 2-3 smaller parts. For example, if you have 12 words, you might divide them into 3 parts of 4 words each, or if you have 24 words, into 3 parts of 8 words each. Then, store each part in a physically different location, with each location being secure and difficult to access. An attacker would need to access all parts of the Seed Phrase to recover your Bitcoin.
• Pros:
  • Increased security: Accessing only one part is not enough to steal Bitcoin.
  • Reduced damage from partial loss/destruction: If one part is lost or destroyed, you still have other parts that can be combined to recover (if enough parts remain).
  • Protection against single-point breach: Prevents an attacker from accessing a single point and obtaining the entire Seed Phrase.
• Risks:
  • Complexity: Requires managing multiple points.
  • Risk of losing multiple parts: If you lose multiple parts of your Seed Phrase (not enough to recover), you will not be able to recover your Bitcoin.
  • More complicated recovery: When recovery is needed, you will have to gather the Seed Phrase from multiple locations.

 

4. Use Shamir's Secret Sharing (SSS)

• Details: It is a mathematical technique that creates multiple "shares" from the original Seed Phrase, where recovering the Seed Phrase requires only a predetermined minimum number of shares (e.g., specifying 3 out of 5 shares). This means you can create 5 shares and store them in 5 different locations. If you need to recover, you only need to combine 3 shares, and even if 2 shares are lost, you can still recover.
• Pros:
  • High flexibility: Can specify the number of shares required for recovery.
  • Resistant to partial loss: The Seed Phrase remains secure even if some shares are lost.
  • Protection against unauthorized access: An attacker must have the specified number of shares to gain access.
• Risks:
  • Technical complexity: Requires understanding to create and manage shares. May require specific software or devices.
  • Software risk: If the software used to create or recover has vulnerabilities, there may be risks.
  • Loss of multiple shares: If more than the specified number of shares are lost, recovery will not be possible.

 

5. Encrypt Seed Phrase

• Details: If it is truly necessary to store the Seed Phrase digitally (e.g., on a computer or USB Drive), you must encrypt that file with a very strong password using reliable encryption software such as VeraCrypt (for encrypting disks or container files) or GnuPG (for encrypting files). Then, store the encrypted file on an offline storage device (e.g., USB Drive or External Hard Drive) that is not connected to the internet.
• Pros:
  • Adds another layer of security for digital data: If someone accesses the file, they still cannot read the Seed Phrase without the password.
  • Convenient storage: Easier to store than physical splitting if it needs to be in digital format.
• Risks:
  • Password risk: If the password is weak or hacked, the file is not secure.
  • Encryption software risk: If there are vulnerabilities in the encryption program, data may be exposed.
  • Digital data storage risk: Even if encrypted and stored offline, there is still a risk of file corruption or device failure.
  • Errors in encryption/decryption: If steps are followed incorrectly, recovery may not be possible.
  • Not recommended as a primary method: Avoid storing the Seed Phrase digitally if possible.

 

Summary

In this first part, we explored Seed Phrase storage techniques ranging from the most basic, such as writing it on paper, to using specialized tools and increasing complexity with splitting or encryption. The primary purpose of each method is to protect your critical key to Bitcoin from loss, destruction, or theft. The key is to choose a method that you feel comfortable with and can manage without errors.

Please remember that owning Bitcoin means being your own bank, and protecting your Seed Phrase is your most important mission. In the next episode, EP.2, we will advance to more complex advanced techniques, suitable for those seeking maximum security and looking for robust, fortress-like methods to protect their significant digital assets!