What precautions should I take to prevent the loss of my 12-word recovery phrase for my digital currency wallet?
Clark HoltDec 26, 2021 · 3 years ago3 answers
I recently got a digital currency wallet and it came with a 12-word recovery phrase. I'm worried about losing it and potentially losing access to my funds. What precautions should I take to prevent the loss of my 12-word recovery phrase?
3 answers
- Dec 26, 2021 · 3 years agoOne precaution you can take is to write down your 12-word recovery phrase on a piece of paper and store it in a secure location, such as a safe deposit box or a locked drawer in your home. This way, even if your digital wallet is lost or stolen, you can still recover your funds by using the recovery phrase.
- Dec 26, 2021 · 3 years agoAnother precaution is to create multiple copies of your recovery phrase and store them in different secure locations. This provides an extra layer of protection in case one copy gets lost or damaged. Just make sure to keep the copies in separate physical locations to minimize the risk of all copies being lost at once.
- Dec 26, 2021 · 3 years agoAt BYDFi, we recommend using a hardware wallet to store your digital currency. Hardware wallets are physical devices that securely store your recovery phrase offline, reducing the risk of it being exposed to online threats. They also often have additional security features, such as PIN codes and encryption, to further protect your funds.
Related Tags
Hot Questions
- 96
What are the best practices for reporting cryptocurrency on my taxes?
- 96
How can I minimize my tax liability when dealing with cryptocurrencies?
- 86
Are there any special tax rules for crypto investors?
- 75
How can I protect my digital assets from hackers?
- 71
How does cryptocurrency affect my tax return?
- 68
What are the best digital currencies to invest in right now?
- 53
What is the future of blockchain technology?
- 23
How can I buy Bitcoin with a credit card?