We are excited to launch a new, general-purpose resource on cryptocurrency security.
Welcome to the exciting journey of owning cryptocurrencies. Start here and learn more about the basics of risks in the crypto space and where to go to keep your crypto safe.
Vault12: Keep Your Crypto Safe | Wasim Ahmad, Chief Crypto Officer
summation
Cryptocurrency wallets are very easy to use in an unsafe manner.
You need to understand what the seed phrase is.
You need to understand why seed phrase backup is the most important thing to keep your cryptocurrency safe.
The right choice for cryptocurrency security is unique and varies from person to person.
Vault12’s “Learn” articles provide insight and understanding regardless of your experience level with cryptocurrencies.
What can I find in the article “Keep My Crypto Safe”?
We created this site for friends and family who are new to cryptocurrencies and want to learn more about how to protect their crypto funds. We hope that the next 500 million future crypto investors will also use the information presented here to make the right choices to protect their digital assets.
The world of cryptocurrencies is very different from the world of traditional finance. The risk of loss, theft, accident or forgetting access information can result in irretrievable loss of funds. We want to provide people with the knowledge to make the right decisions to protect themselves.
Crypto wallets are essential and incredibly easy to use. They allow you to buy crypto quickly. However, when it comes to buying, many “how-to” websites and wallet providers overlook the options for making a secure choice. Our guides provide you with the right security advice at the right time when setting up your wallet.
There are a few key concepts to understand about cryptocurrency wallets. What is a seed phrase? And how do you back it up? (Paper is only one method, and while it’s not the most robust, it’s often the default or only option described.)
If you are an experienced crypto enthusiast and want pointers on advanced approaches to security, you will find that there is no definitive guide on the Internet, at least not in an accessible way. Technical miscellaneous information from various time periods and sources is buried deep in forums, but it is difficult to connect them in a meaningful and reliable way. The optional advanced articles provide ways to explore complex topics, such as how to generate seed phrases using a 20-sided dice.
By publishing both introductory and advanced articles, we’ve compiled the basics of cryptographic security into an easy-to-understand collection so you can confidently prepare to take on this new world.
Can I manage my cryptocurrencies and digital assets responsibly?
If you lose your keys, you can call a locksmith to open your door or car. (There are approximately 26,000 locksmiths in the United States, so this kind of service is definitely needed!) However, if you lose the private key or seed phrase associated with your cryptocurrency wallet, you’re out of luck. Bitcoin, and all major cryptocurrencies since, are built on public key cryptography, an encryption system that uses key pairs. The public key is used to identify your publicly visible blockchain address, while the private key is kept secret and used for authentication and encryption. This cryptography is so effective that if you lose your private key, you can no longer verify that you own the funds stored in your blockchain address, and you can’t move or sell your cryptocurrency. Your funds are effectively “gone.”
The biggest difference between the traditional financial system and the cryptocurrency world is that in the case of cryptocurrency, You are responsible for controlling the security of your funds. – Not a bank or a government. There is no one-size-fits-all security option for everyone due to individual differences in assets, preferences, and risks. That means you need to choose the right layer of security for your situation. This site provides practical knowledge of the security essentials you need and explains some of the tradeoffs that exist so you can make the best choice for you.
In our article “Why Should You Care About Security?” we discuss the risks associated with holding cryptocurrencies. These risks include:
What else do I need to know about digital wallets?
There are a few basic concepts you should know or learn about wallets, especially the seed phrase and how to back it up. Nine out of ten cryptocurrency wallets will tell you or strongly suggest that you write down your seed phrase on a piece of paper. While this is convenient, it is not the most robust approach to protecting this important information.
While only you can decide which approach is right for you when it comes to choosing and setting up your crypto wallets and other digital assets, with seed phrase backups and other wallet setup choices, the right answer generally comes down to using multiple layers of security. The right answer for you comes from understanding your options and making an informed choice.
How can I learn more about Web 3 crypto assets?
The article below explains how to use and protect your cryptocurrency assets, and also includes additional links to learn more about the world of Web3 tokens and assets.