Should you worry about your Hardware Wallet security? Everything you must know

As a cryptocurrency user if you store your crypto on hardware wallet should you worry about your hardware wallet security?

 

If you surfing on the Internet, you may have seen articles regarding hardware wallet security issues. 

A hardware wallet can get hacked too. Is your hardware wallet secure enough?

like this, you find many articles. After reading such articles you also got cautious about your crypto kitties.

As a normal user, you may think that my crypto is not secure even in the hardware wallet. Is my hardware wallet will get hacked next time while I transacting with it?

But that's not totally true. For hacking or stealing your crypto funds which store in your HW. A hacker or someone from inside needs to physically access your device.

If you use your hardware wallet correctly. And use it with the latest firmware software and updated operating system. The hardware wallet is the most secure and user-friendly way of storing crypto.

The hardware wallets is a special-purpose device with a much smaller attack surface. Designed to do only one thing is securely holding your private keys. They are not connected to the Internet.

One bridge program is between HW and operating system which can take the only request from the computer for signing the transaction.

You need to physically sign the transaction by pressing the confirm button on  HW. Which signs your transaction by your private keys saved in a Secure Element (a microcontroller chip) present in Hardware wallet.

So chances of being getting hacked your Hardware wallet is very much less. If you store your crypto in Hardware wallet then it's a golden standard of storing your cryptocurrencies.

So if you have your crypto on the hardware wallet that is a relatively high level of security.

What issues you need to pay attention to your Hardware Wallet?

The important question then becomes, where is that hardware wallet backup?

How you keep your Hardware wallet?

Safeguard your Hardware Wallet..!

For example, If you have a hardware wallet with the PIN, Then the keys itself in the hardware wallet is secure. But it still very much vulnerable to physical attack. 

A PIN number is just to protect your hardware wallet. It can nothing to do with a passphrase. No one can simply unlock it (without pin).

If someone can takes your hardware wallet and knows your pin or get it by somewhere. In this scenario, you are in the middle of the risk. Your crypto has gone forever.

You need to keep your Hardware wallet in a physically safe place like behind the wall, underneath the floor, in the vault. means you must secure the location of the hardware wallet.

If the attacker knows your location and they also know that you have crypto then you have a higher degree of risk.

You get accounted for that.

Backup seed 24 words

Backup Seed of Hardware Wallet

When you first time initialize (setup) your hardware wallet, you prompted with 24 words (mnemonic phrase) generated by a hardware wallet. 

You need to write down those 24 words on the recovery sheet. These 24 words basically English words in a human-readable format.

All keys stored in your hardware wallet can be derived from these 24 words (mnemonic phrase).

In case of lost or stolen or damage your hardware wallet. You can restore your hardware wallet device and access your crypto funds on another compatible wallet. 

You must protect that 24 words seed of words generated by a hardware wallet. You need to secure this 24 words recovery sheet. some people much worried that someone can identify those words and steal their whole money.

But this is not the biggest risk.

The biggest risk is that you lose it. You forgot where you put it. or it damages by moisture.or some natural causes like a flood, a fire. Which is a real problem.

When paper gets wet or catch moisture then Ink may get bleed. It could be destroyed by termites. Then you may lose the only backup.

Protect against many of these risks 

Many simple measures can protect your backup seed. You have to add another layer of protection on your backup seed.

If you passed away by some unfortunate reasons and your passphrase only known to you. then it will difficult for your loved ones to get back recovery phrases and recover your crypto funds.

If you physically protecting your seed against disclosure. Then you have to make two or more copies of your backup seed.

Making two or more copies of seed you have to make sure that after one gets damaged you can have another copy in your hand. 

Write down your seed by simple pencil to protecting it from Ink bleeding due moisture or getting wet.

 

Store them in distant geographical locations. By storing them in distant locations you somewhat safe from natural causes like earthquakes, flood, fire, and manmade causes like robbery, unauthorized physical access.

You have to add some simple security measures to it. Take your backup phrase paper and laminate it to protect it from moisture and liquid damage.

And put this into a tamper-evident paper envelope. You can easily get it from a stationary store near around. These envelopes are mostly used in donations, or to send some confidential papers in institutions.

By taking these measures you can easily inspect that anyone has gone through your seed or not. It will also give you peace of mind.

Store these envelopes in a fireproof safe in distant geographic locations. Chances of being burned out and environmental damage at the same time are very much less.

Finally, write a letter and tell your family about your crypto and coordinate with them. They actually need to know that these things exist. You hold crypto and you store it.

So that right people know these things but can't easily access them. 

By taking above simple measures like a pencil, plastic lamination, tamper-proof envelope, location diversity. You have achieved a pretty much-satisfied level of security.

You don't need overextended technical skills to secure your crypto funds. By following these measures you store your crypto backups very effectively and safely.

With a sense of confidence, peace of mind, and with an easy future.

My final words "Cryptocurrency comes with great Power with great Responsibility".