Dogecoin developer Mishaboar reminds users about the importance of protecting seed phrases, highlighting vulnerabilities associated with cold wallets.
Cold Wallets and Seed Phrase Vulnerability
Cold wallets are generally considered safer for safeguarding assets, especially for long-term storage. However, some users have misconceptions about this mode of storing assets. Mishaboar clarified that cold wallets do not actually store users' coins but rather only keep the seed phrase. Digital currencies still reside on the blockchain and can be spent by anyone who has access to the seed phrase.
> "This is still a crucial reminder for newbies (and not only, it would seem). Your cold wallet doesn’t actually 'hold' your coins - it 'just' stores your seed phrase safely. Your coins live on the blockchain, not inside any device, and can be spent by whoever has your seed…" — Mishaboar.
Cybersecurity is Everyone's Business
While Mishaboar's update comes at a crucial moment amid market volatility, other top entities in the industry are also known to caution their communities on basic security tips. For instance, Binance's CEO is known to warn exchange users about scam tricks posed by some accounts on the platform. These warnings cover phishing scams, AI deepfakes, and even P2P linked exploitations.
Tips to Prevent Loss of Funds
Mishaboar also noted that generating a new seed phrase from a possible device reset might lead to funds loss. Considering that the seed phrase is all that matters, he advised keeping multiple offline backups — up to three — in secure spots. His remarks highlight that funds loss is a common occurrence in the digital currency ecosystem, necessitating occasional warnings from top industry experts.
Mishaboar's discussion on seed phrase security and cold wallets serves as a reminder for users to take care of their assets and exercise precautions in the evolving crypto market.
