In the world of Cryptocurrency, there is only one thing keeping your funds safe from the hackers and thieves who would steal your money, and that is the way in which you secure and protect your private keys.
If your private key resides on an exchange or in a remote wallet application, then your money is only as safe as the security used by that particular website or service. You are trusting them to store your money safely and securely 24 hours a day, 7 days a week. This is not recommended for storing large amounts of money for any significant length of time as exchanges have been compromised in the past, often with devastating impacts for users.
If your private key resides in software on a computer or mobile device, then your money is only as safe as the security used by that particular software package and by the operating system of your computer. Most modern operating systems have very robust security features these days however hacks can and do happen, resulting in the loss of funds and loss of trust in cryptocurrency systems.
It’s widely acknowledged that one of the safest ways of storing your funds is in an offline ‘Cold Storage’ wallet, such as a Ledger or Trezor device. The only place on earth that a copy of your private key exists is on that device, so as long as you are able to keep it safe and secure then it can keep your funds secure. But what if the device itself is lost or damaged in some way? What happens then?
Thankfully, back in 2013 some very clever people came up with the BIP39 mnemonic key standard. This breaks your private key down into a set of ‘seed words’, each of which represents a small piece of your private key. When put together, your set of words can be combined to re-create your private key on a new or different device to your original.
Safe Words represents a new way of storing the mnemonic key you use to secure your Digital currency wallet. When creating your wallet, you would normally be told to write down your 24 word recovery phrase on a piece of paper, and store it in a safe place. But realistically, how safe is that? We have a solution SAFEWORD’s by Coinstorage.GuruBuy now