Security: Five Mistakes When Storing a Seed Phrase

A seed phrase is the key to your crypto assets. You need it to restore access to your wallet if you lose your device, change your phone, or reinstall the app. That’s why keeping your seed phrase secure is critical: if attackers obtain it, they can take full control of your funds. Unfortunately, many users make common mistakes when storing their seed phrase, putting their assets at risk.

Here are the five most common ones:

1. Storing it in digital form on your phone or computer.

Storing a seed phrase as a photo, screenshot, or text note on a phone, tablet, or computer is extremely unsafe. Attackers can gain remote access to your device via phishing websites, malware, or a compromised account. If the seed phrase is among the files on the device, criminals can easily discover it and gain access to your wallet. Even if you use cloud storage and consider it well protected with passwords and two-factor authentication, that protection does not guarantee complete security of your data. Data leaks and account breaches at major cloud services occur with alarming regularity.

2. Sending your seed phrase via messengers or email.

If you send your seed phrase over the internet, there’s a significant risk it will fall into the wrong hands. Even when using “secure” messengers or email, you can’t be completely sure it’s safe: messages can be intercepted if the connection isn’t properly protected, or if someone gains access to your account. It’s especially dangerous to use a device infected with malware—such programs often actively hunt for this kind of data and can quietly exfiltrate your seed phrase to attackers. Even if you delete messages after sending them, copies are often retained on servers or in backups, which also puts your digital assets at risk.

3. Keeping your seed phrase on paper in an unsafe place.

Writing your seed phrase on paper is indeed a good option, since it avoids storing sensitive data in digital form that can be hacked or stolen over the internet. However, this method has drawbacks. If the paper with your seed phrase is left on a desk, in a card, a notebook, or any other accessible place, it can be easily found by others—criminals, visitors, or even family members who might accidentally throw it away or use it for something else. A loose sheet is also easy to lose, toss out with the trash, or ruin by a spilled drink. There are more serious risks, too: fire, flooding, theft, or simple paper degradation can leave you with no way to access your funds, because your seed phrase cannot be recovered. If that paper is your only copy, losing it means losing control of your entire crypto wallet.

4. Sharing or showing your seed phrase to third parties.

You must never share your seed phrase or show it to anyone—even the closest people. This phrase is the key to your crypto assets, and anyone who obtains it can take full control of your funds with no possibility of recovery. Scammers often use various tactics to extract information: they may pose as support staff, technicians, friends, or acquaintances to gain your trust and trick you into revealing your seed phrase. No official service, and no wallet or exchange employee, will ever ask for your seed phrase—this is always confidential information that you must keep only to yourself. Be especially careful in chats, on social networks, or over the phone: if someone asks for your seed phrase, it’s a clear sign of fraud. Never disclose your seed phrase to anyone, under any circumstances, no matter how convincing their request sounds.

5. Storing the seed phrase together with the device where the wallet is installed.

If your wallet and seed phrase are stored together—for example, in the same drawer, box, or on the same shelf—it drastically reduces the security of your funds. In the event of theft or unauthorized access to your home, an attacker could obtain both the wallet (or the devices/computers with the wallet) and your seed phrase at once. In practice, this means they could gain full access to your account, while you would lose control of your assets and be unable to recover them.

To stay secure, make several copies of your seed phrase and store them in different reliable places—for example, in a bank safe-deposit box or a home safe. For additional protection, you can use special metal backup plates, which are more resistant to fire and water. Remember: no one but you should know where these copies are kept, and you should be sure you can find them if the need arises.

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