The collapse of FTX ensures that more and more people choose to keep their bitcoin (BTC) and other crypto in their own wallet. That is a good development, because in theory this is the safest way to store your digital assets. After all, you are no longer dependent on the financial health and safety of centralized parties.
Crypto wallet seed phrase revealed
However, it is not always the safest option, especially if you choose to use your seed phrase physically in the tailgate of your car. An American man in Nevada found out the hard way. For some reason, the US police decided to search his car and then his seed phrase was filmed by the police body camera.
This video of cops in Nevada searching a suspect and finding a seed phrase is pretty wild. Imagine having your seed phrase become part of public record due to it being captured by an officer’s body camera! pic.twitter.com/vS2vm0xh7N
— Jameson Lopp (@lopp) December 18, 2022
The video then went viral on Twitter. It wasn’t long before Binance CEO Changpeng Zhao hit the shots responded. In principle, Zhao is in favor of own wallets, but has also been warning for some time about the major dangers it entails.
“I am in favor of free choice. Feel free to hold your crypto however you like. But learn the risks of each method.”
A mistake is easily made and unfortunately that is also immediately fatal when it comes to own wallets. You can only lose your bitcoin once and then you cannot contact customer service. In that respect, you have more options with a stock exchange platform. In principle, your own wallet is the most secure way to store your crypto, but that does not apply to everyone.
The best way to store crypto?
So what is the best way to store your crypto assets? Some say it’s best to memorize the 12 or 24 words of your seed phrase. In principle, that is an option, but you always run the risk of forgetting it. After all, you cannot be sure that you will always remain as sharp as you are today.
However, it is extremely powerful to be able to take your bitcoin with you in your head in this way. In theory, you can cross the border with billions in capital, without anyone knowing anything about it. The idea alone would almost give you goosebumps.