Sharing the strategy I’m using to protect my own hardware wallet backups.
Simply described process is as follows:
Step #1: Keep Your Recovery Seed 100% Offline – ALWAYS
Step #2: Enable Passphrase On Your Hardware Wallet
Step #3: Backup First Passphrase Part Offline
Step #4: Schedule Recovery Email Containing Second Passphrase Part
More details here:
https://seedcret.com/kb/how-protect-hardware-wallet/The benefits are:
BENEFIT 1 (for myself) – peace of mind: Even if I would forget my passphrase, I know where to look, to refresh my memory
BENEFIT 2 (for others) – inheritance plan: In advance, I can let my family know where both physical backups are (the recovery seed and the first part of the passphrase) and also that they would receive the recovery email containing the second passphrase part in case of an accident/death
Of course, I can give the second passphrase part to my family right away but I don’t want to do it because:
The more people know it, the higher the risk is, that it will be compromised (even if by an accident)
I want to make sure that my family will access my assets once I am not here but not before (when I am still here:))
BENEFIT 3: No need for lawyers or any third party that you have to trust
BENEFIT 4: Passphrase backups separated offline and online – a criminal visiting your flat won’t be able to find the whole passphrase in one place
I’ll be happy for any comments.