May 26, 2020

BlogCoinz

Cryptocurrency and Technology

Why Backing Up Your Keyphrase is Important!

Ok, I have held off on reporting this story to allow it to fully develop and give you the best information I could. A few days ago Gold and Silver mogul Peter Schiff posted that his crypto app became corrupt after an update and would not let him log in. Of course, Twitter was quick to bash on him for not backing up his keyphrase and forgetting his password like a typical boomer. The fact is though, these mistakes happen. I personally lost a BravoCoin account because I did not back up my keyphrase. Small loss as I didn’t have much but still.

Freak Out

Part one starts with Peter freaking out that his password would not work and the app was corrupted. The support team for the app in question reached out in his feed to offer support right away. Peter was adamant that his password only contained numbers and he uses similar ones for everything.

Let me say first off this is a huge security risk. NEVER use easy brute force options as a password. Use a combination of numbers, letters, and special characters. Using only numbers makes it very easy to brute force.

PIN vs Password

Well, as it turns out Peter was not entering in his password but rather his PIN that gives him quick access to the app on his secure device. The PIN was wiped due to the update and he couldn’t remember his actual password.

Honest Mistake

Peter didn’t back up his private seed phrase. This phrase is provided by wallets as a means to recover your wallet in the event of this type of issue. Your seed phrase is your key to your backups and should be stored on paper in a secure location. I keep mine in… HAHA just kidding. Do not tell people where your keys are either as this is also a security risk. It is a good idea to let a loved one know of the location in the event of your demise but beyond that don’t share your information.

Take Away

This is an honest mistake and we shouldn’t beat Peter up too much. He did recover his crypto and all is well in his world but this could have easily gone the other way for him. Back your keys up and store them in a safe location. Remember, not your keys not your coins! Your keys and seed phrases are all that can protect you in this crazy crypto world so be vigilant!

UPDATE

It seems I didn’t have all the information. When I said his funds were recovered I was wrong but the lesson here remains the same.