Keeping your investment in Bitcoin safe from scams or theft is very important. Store your Bitcoin in a safe wallet rather than leaving them on an exchange. You must secure the private keys which you use while opening the wallet. There is always the risk of losing your private keys. To avoid recovery vulnerabilities, you have to back them up.
For a nondeterministic wallet, there is no need to back up the private key. But, for deterministic wallet, you have to back up the multiple private keys generated from a starting point- ‘seed’. If you lose access to your wallet, this will regenerate the private keys.
The seed recovery key is a unique code having 12 to 24 random words. My suggestion is that you should never reveal this online, share with other persons, or store it in a cloud storage service. This seed key is the only important aspect that can ensure the safety of your cryptocurrency. So, you need to record your recovery phrase and backup your wallet. In this article, I am going to give you the best ways to safely store your private keys.
Storing the key offline
The most effective storage location is offline. Consider the amount of cryptocurrency you collected, then decide which offline method of storage is suited.
Safety deposit box- You can purchase a small safe relatively cheaply. If you are saving the backup keys in a safety deposit box at a bank, get crypto insurance first, so your losses are covered.
Manual encryption – If the Bitcoin are few in number, write down the key discreetly in a book or on laminated paper. Encrypt the key manually with your own code and put it in a safe location.
Hardware devices- Use fire and flood resistant hardware devices like Cryptosteel, onto which you can engrave your key. Hardware wallets have specially designed devices to store your key.
Other useful tips
Encrypt your computer- Any unencrypted file is at risk of being hacked. Encrypt your personal computer if you store your key on it.
Encrypt your files- Alternatively, you can encrypt specific files using software like VeraCrypt and Folder Lock. You can hide the files or shred them with these software.
Generate the key locally- I recommend generating your own key locally, after disconnecting from the internet. If this is not possible, use hardware wallets. Always avoid web-based generators.
There are many tricks and tips to keep your recovery seeds secure. However, choose a method which makes you confident. I have provided here some of the best methods to keep your seed key safe. You can use one of these methods or their combination for your private data too- like personal documents.