I think one of the most important things that got hammered into my head when I began my cryptocurrency journey was this- NEVER EVER SHARE YOUR SEED PHRASE WITH ANYONE.

If you are a newbie in the crypto space and reading this, I’m telling you the same thing now- DO NOT EVER SHARE YOUR SEED PHRASE WITH ANYONE. EVER.

Unlike the regular Web2 world where the security of your funds majorly lies with the banks you operate with, you have to handle the bulk of your security in the Web3 space.

Most cryptocurrency wallets do not require your personal information, rather it makes use of three secrets: seed phrases, passwords, and private keys to keep your wallet secure as well as identify who a particular wallet belongs to.

Now what do these three secrets entail and how do they help protect your assets, read on to find out more.

Demystifying The Concept- Seed Phrase

As long as you have been exposed to the world of cryptocurrency, you have gotten accustomed to the word- -seed phrase.

If you are a newbie to the space, then you will soon become very familiar with what the seed phrase entails, as you’d be coming in contact with it regularly especially if you plan to focus on Decentralized finance (DeFi).

At first contact, a seed phrase appears as a string of random words that are generated during the initial setup of a cryptocurrency wallet. It is usually about 12 different words, or 16 different words as the case may be per wallet.

It is cryptographically generated when you set it up, and no one without the phrases can access the wallet.

Note that these words are generated in a specific order, and if you put the phrases in an order different from the way it is generated, you won’t have access to your wallet.

In some cases, the seed phrase can be termed something else. Metamask for example refers to it as the Secret Recovery Phrase (SRP).

Regardless of the name change, it performs the same function and helps in protecting your assets from unauthorized access.

In any case, when you need to import from one wallet to the other, you need the seed phrases or recovery phrases to do this.

Such wallets where this can be done are known as non-custodial wallets, which means that only you have access to the string of letters, and only you have control of what you do with your wallets.

You must keep your seed phrase safe as anyone with the phrases is fully authorized to perform transactions on the wallets it is affiliated with.

Some of the ways you can protect your seed phrase include writing it on a piece of paper and keeping it safe from a third party, saving it on a Google account that you are not using at all, locking it in a folder on your drive with encryption, etc.

Regardless of the method you choose to employ, don’t forget that you are NEVER to reveal your secret seed or recovery phrase to any other person.

If someone asks you to share it with them, such a person wants to steal your funds.

In the image below, Metamask is emphasizing this exact thing and telling its users not to share their seed phrases even with customer service from Metamask’s team.

Demystifying The Concept- Password

Unlike the seed phrase, there is less technicality to the concept of the password.

You have devices; phones, tablets, PCs, etc, you also have apps that you protect with a password.

Even your bank app also has some form of password or authentication that helps to verify that you are the one about to access it and perform transactions.

In the case of your Web3 wallets, the passwords work likewise. It helps to protect the wallet itself from unauthorized access.

Before you open the app, you’d be asked to put in your password or authenticate yourself via biometrics like fingerprints, face scans, etc.

This helps to add an extra layer of security to your assets which the wallet is housing.

‍Demystifying The Concept- Private Keys

Unlike the seed phrase that comprises 12- 16 random words, private keys are made up of a string of letters and numbers joined together to help protect your assets.

Whilst the seed phrase will help you import an entire wallet, private keys work differently. It can only give you the ability to import a specific account and not the entire wallet.

This comes into play when using wallets like Metamasks which allows its users to create different accounts under a single wallet. Thus, each of these accounts comes with its private key.

Just as you should pay close attention to protecting your seed phrases, the same diligence should be directed to your private keys.

This is because once a person has access to your private keys, they have full control of that specific account and can do whatever they want with it.

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Thus, the warning of never sharing your sed phrase with anyone also applies here. NEVER share your private keys with anyone, no matter the situation.

Below is an image where Metamask also raises awareness on why it is important not to share your private keys with anyone.

Final Words

Whether you like it or not, the security of your assets lies in your care. That is the sacrifice you have to pay for choosing to leave the traditional finance system.

So even if you don’t get anything from this article, get this one thing- DO NOT EVER SHARE YOUR SEED PHRASE OR PRIVATE KEY WITH ANYONE.