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Contents
Crypto Security How-to's
How to back up your seed phrase to a local device (like USB).
It is tempting to just back up your seed phrase on a USB stick and drop it in a drawer. Here is why not to do that.
August 31 2024
Storing your mnemonic seed words on an internet-connected hard drive is not recommended under any circumstances, but some people wonder whether it is sensible to copy their seed words to electronic storage that they keep offline. It sounds simple - and indeed, it is simple to initially perform, but it is very hard to do it in a way that will pass the "test of time."
TL;DR (concentrated takeaways)
Local media drives are subject to the same risks of theft and natural disaster as other backup forms like paper.
Local media drives will fail after some time, and the amount of time is not always predictable.
Encrypting data on a local drive requires thoughtful planning for not only how to store the data (hopefully, even encrypted, it would not be stored on an internet-connected computer), but how to store the decryption password.
Vault12 is far more reliable than relying on local drives.
What are the advantages and disadvantages of backing up to USB?
Advantages:
- Convenience
- Less risk of electronic theft than keeping the backup on an online drive
Disadvantages:
- Increased risk of loss by physical misplacement or theft
- Increased risk of hardware failure
- Hard to protect from natural disasters
What are the location-related risks of backing up to USB?
If not encrypted, data stored on a portable drive plugged into a compromised computer can be accessed or viewed by an unauthorized person without even leaving any indication that it has been viewed. (This is sometimes called "the Evil Maid Attack.")
Even if encrypted, physical backup media can still be misplaced or stolen. These risks can be greatly reduced by keeping backup media in a secure safe - but electronic media is more delicate, and more difficult to protect in a safe than paper is.
The internet is filled with stories of people who experienced loss or failure of their USB and hard drives - as simple as forgetting your PIN/password. Try not to join them.
How long does electronic media last?
All disk drives eventually fail, and some types fail faster than others.
Physical drives vary in their robustness. USB flash memory drives and SD cards have high failure rates - they are not designed to be used as long-term storage. They are susceptible to damage if improperly ejected during use, and connector pins can rust. They can be accidentally reformatted and re-used if not clearly labeled and separately stored. External hard disk drives (HDDs) are vulnerable to mechanical failures, especially if accidentally dropped. Portable solid-state drives (SDDs) are more robust, but they, too, will predictably fail before many years pass. Backups can provide some insurance against failure, but every backup copy requires a separate plan to secure it, and age affects all backup copies.
Natural disasters present their own risks to locally-stored media, some of which can be prevented by storing an external drive in a waterproof, specialized data vault safe. It should be noted that standard fireproof safes do not stay cool enough in fires to protect electronic media.
What are some common challenges to protecting your sensitive data?
USB storage for sensitive data also presents some risks that are common with those related to backing up your seed phrase to the Cloud, namely:
- Any computers used to type, store, or display the mnemonic phrase could have been compromised with malware, leading to theft of your phrase.
- Protection can be added by encrypting your mnemonic phrase, but that requires handling it on a computer, and increases complexity and difficulty. You still need to keep track of and secure the password for decrypting.
- Protection can be added by storing your mnemonic phrase in a password manager, but that requires handling it on a computer, and also increases complexity and difficulty. You still need to keep track of and secure the password for the password manager.
- A locally-installed password manager software carries the additional risk of corrupted data - a risk which can be countered by backing it up, but this creates additional copies to be protected.
Vault12 offers a safer way.
Ultimately, a comprehensive, disaster-proof backup plan for storing electronic data on local media is extremely complex, and not practical for most people. The Vault12 platform offers a much better way.
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Crypto Security How-to's
How to back up your seed phrase to a local device (like USB).
It is tempting to just back up your seed phrase on a USB stick and drop it in a drawer. Here is why not to do that.
August 31 2024
Vault12
Vault12 is the pioneer in crypto inheritance and backup. The company was founded in 2015 to provide a way to enable everyday crypto customers to add a legacy contact to their cry[to wallets. The Vault12 Guard solution is blockchain-independent, runs on any mobile device with biometric security, and is available in Apple and Google app stores.
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You will lose your Bitcoin and other crypto when you die...
...unless you set up Crypto Inheritance Management today.
It's simple—if you don't worry about it, nobody else will—not your software or hardware wallets vendors, not your exchanges, not your wealth managers. So you have to think about how to protect the generational wealth you have created and reduce the risks around passing that wealth on to your family and heirs. What are the challenges with crypto inheritance?
- Crypto Wallets are difficult to use and do not offer crypto inheritance management. In fact, most of them tell you to write down your seed phrase on a piece of paper which is practically useless.
- Some people back up their wallet seed phrases or private keys on paper, local devices like hardware wallets or USBs, or in the cloud - all of these options have severe drawbacks from hacking, to accidental loss, to loss of cloud services. No one wants that to happen to their crypto generational wealth.
- Software wallets operate on specific blockchains, yet your crypto assets span multiple blockchains, for inheritance to work, you must be able to manage inheritance across every blockchain - now and forever.
Crypto Inheritance Management: Get ready today
Vault12 is the pioneer in Crypto Inheritance Management that delivering an easy-to-use and secure method for assigning a legacy contact to your crypto wallets. This enables you to pass on your wallet seed phrases and private keys — including Bitcoin (BTC), Ethereum (ETH) — to future generations. Designed for everyday people, and strong enough for Crypto OGs.
This innovative, decentralized system enables users to appoint a person or mobile device as Guardian. The designated guardian is entrusted to protect the user's comprehensive collection of wallet seed phrases and private keys, safely stored within a decentralized digital Vault. No information is stored on cloud servers, or Vault12 servers and nothing is stored on local devices making it less of a target.
The Decentralized approach reduces points of failure and removes the necessity for regularly revising wallet inventories or modifying instructions for your lawyers, often leading to privacy breaches. It is the best way to preserve crypto generational wealth.
Take the first step and back up your crypto wallets.
Designed to be used alongside traditional hardware and software crypto wallets, Vault12 Guard helps cryptocurrency owners back up their wallet seed phrases and private keys (assets) without storing anything in the cloud or any single location. This increases protection and decreases the risks of loss. Making sure you have an up to date back up is the first step in crypto inheritance management.
The Vault12 Guard app enables secure decentralized backups and provides inheritance for all your seed phrases and private keys across any blockchain, including Bitcoin, Ethereum, ERC-20, and other crypto wallets.
Note: For anyone unfamiliar with cryptocurrencies, Vault12 refers to wallet seed phrases and private keys as assets, crypto assets, and digital assets. The Vault12 Guard app includes a software wallet that works alongside your digital Vault. The primary purpose of this is to guard your Bitcoin (BTC) or Ethereum (ETH) wallet seed phrases, private keys, and other essential data, now and for future generations.
Add Inheritance for your crypto.
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