We’re excited to launch 🚀 a new general-purpose resource on cryptocurrency security.
Welcome to the exciting journey of owning cryptocurrency. If you want to learn more about the basics of risk in the cryptocurrency environment and how to keep your cryptocurrency safe, start here.
Vault12: Keep your cryptocurrency safe | Wasim Ahmad, Chief Crypto Officer
TL;DR
Cryptocurrency wallets are very easy to use in an insecure way.
You need to understand what a seed phrase is.
You need to understand why backing up your seed phrase is the most important part of keeping your cryptocurrency safe.
The right choice for cryptocurrency security is personal and unique to each individual.
Vault12 “Learn” articles provide understanding and insight regardless of your level of experience with cryptocurrency.
What will you find in this set of “Secure My Crypto” articles?
We created this site for friends and family who are new to cryptocurrency and want to learn more about how to secure their cryptocurrency funds. We hope that the next 500 million future cryptocurrency investors will also use the information presented here to make the right choices to protect their digital assets.
The world of cryptocurrency is very different from the world of traditional finance. Loss, theft, accidents, or simply forgetting your access information can result in irrecoverable loss of funds. We want to give people the knowledge to make the right decisions to protect themselves.
A cryptocurrency wallet is a must-have and incredibly easy to use. This allows you to quickly start purchasing cryptocurrency. But in order to get to the purchasing stage, many “how-to” websites and wallet providers ignore options on how to make safe choices along the way. Our guide will provide you with the right security advice at the right time as you set up your wallet.
There are a few key concepts to understand about cryptocurrency wallets. What is a seed phrase? And how to back it up? (Paper is only one way, and it’s not the most powerful. But it’s often the default or the only option described.)
If you’re a seasoned cryptocurrency enthusiast and want some guidance on some advanced approaches to security, you’ll find that there’s no definitive guide on the Internet, at least not in an accessible way. Technically useful information from a jumble of time periods and sources may be buried deep inside a forum, but piecing it together in a meaningful and reliable way is difficult. Optional advanced articles show you how to explore complex topics, such as how to generate a seed phrase using a pair of 20-sided dice.
Publishing both introductory and advanced articles, we’ve consolidated the fundamentals of cryptocurrency security into an easily digestible collection, ready for you to confidently participate in this brave new world.
Can I manage my cryptocurrency and digital assets responsibly?
If you lose your keys, you can call a locksmith to unlock your door or car. (There are approximately 26,000 locksmiths in the United States, so there’s definitely a need for this type of service!) However, if you lose the private keys or seed phrases associated with your cryptocurrency wallet, you’re out of luck. Bitcoin and all other major cryptocurrencies since were built on public key cryptography, an encryption system that uses key pairs. The public key is used to identify a publicly visible blockchain address, while the private key is kept secret and used for authentication and encryption. This encryption is so effective that if you lose your private key, you will not be able to authenticate yourself as the owner of the funds stored in the blockchain address and you will not be able to move or sell your cryptocurrency, i.e. your funds. In effect, it will “disappear.”
The biggest difference between the traditional financial system and the cryptocurrency world is that in the case of cryptocurrency, You are responsible for managing the security of your funds. -Not a bank, not a government. Because assets, preferences, and risks vary from person to person, no single set of security options is suitable for everyone. This means that you need to choose the appropriate security layer to use for your situation. This site will give you practical knowledge about the security essentials you need and explain some of the pros and cons that exist so you can make the best choice for yourself.
We ask ourselves, “Why should we care about security?” The article discusses the risks associated with holding cryptocurrency. These risks include:
What else do you need to understand about digital wallets?
There are a few basic concepts you should know or learn about wallets. In particular, there are concepts related to seed phrases and how to back them up. 9 out of 10 cryptocurrency wallets either say or strongly imply that you need to write down your seed phrase on paper. Although convenient, it is not the most robust approach for protecting sensitive information.
Seed phrase backups and other wallet setup options can help you determine the right approach for selecting and setting up cryptocurrency wallets and other digital assets, but the right answer usually lies in using multiple layers of security. The right answer comes from understanding your options and making informed choices.
Web 3 How can I learn more about cryptocurrency assets?
The article below explains how cryptocurrency assets are used and secured and includes more links you can follow to get your feet wet in the world of Web3 tokens and assets.