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Title: Hardware wallet and recovery seed Post by: btcconnoisseur on August 31, 2017, 02:24:58 PM Can a wallet be recovered by somebody else, if they find a recovery seed note, that I've stored in my physical safe, while I still have my cold wallet (Trezor)?
Will I learn about it or not until the $$ is out? ;D Title: Re: Hardware wallet and recovery seed Post by: Xavofat on August 31, 2017, 02:43:28 PM Yes. The seed is a phrase that is used to generate your private keys, and the private keys are what gives you the right to spend your coins.
However, TREZOR has a solution to this, which is called passphrase encryption. In addition to your seed (which you could store in safe places like a bank deposit box or underground), you can have a passphrase which is like the 25th word of the seed. Also, you can create separate wallets with separate passphrases - that way you can have a wallet from which you spend smaller amounts of funds and a wallet in which you hold large amounts of funds. When you're attacked, you would then only give access to the wallet with less funds, and the other wallet can be hidden. The important thing is that the attacker doesn't know precisely how many coins you hold - your privacy is very important in this case, so you need to manage your addresses properly to avoid revealing all of your funds at once. You can also take additional steps to improve your privacy, such as mixers. It's important to note that if you forget your passphrases, your wallets will be permanently lost because they are part of the seed. |