04-18-2023, 06:51 AM
How to Hide Your Crypto Using a Passphrase (25 Word) - Protection Against the $5 Wre
<!-- SC_OFF --><div class="md"><p>I recently published a post with 10 tips to protect your seed phrase:</p> <p><a href="https://www.reddit.com/r/CryptoCurrency/comments/12o1f73/protect_your_seed_phrase_10_tips_to_secure_your/">https://www.reddit.com/r/CryptoCurrency/comments/12o1f73/protect_your_seed_phrase_10_tips_to_secure_your/</a></p> <p>I was surprised how many people found the concept of passphrase (25th word) fascinating and didn't know about it before.</p> <p>Thus, I'm writing this post to explain what a passphrase is and how it can protect you even further.</p> <h1>Background & Prerequisites</h1> <p>To understand this post, you need to have at least basic understanding of <strong>self-custody</strong>.</p> <p>Understanding seed phrases (12 or 24 words) and how you need to protect those to keep ownership of your wallet.</p> <p>However, even if you do everything correct technically, you're still vulnerable to the $5 wrench attack.</p> <h1>The Wrench Attack</h1> <p>The <strong>$5 wrench attack</strong> is a non-technical but social engineering attack, where you are forced to give out your private keys against your will.</p> <p>It's called the $5 wrench attack because someone can get a cheap wrench, come to your house, and pass any security you have by using violence.</p> <p>Needless to say, many of us would succumb to this in many cases - especially if our loved ones' lives are in danger or we're threatened with loss of freedom by the government.</p> <h1>The Passphrase (25th Word)</h1> <p>A <strong>passphrase</strong> is an extra word you can use on top of your 24 words.</p> <p>This will allow you to control a completely new set of addresses.</p> <p>Having a 25th word is crucial, because you can choose the word yourself - it's not part of the BEP39 word list.</p> <p>This makes it easy to remember and adds extra security in case someone gets access to your 24-word seed phrase.</p> <h1>Handling Wrench Attacks the Right Way</h1> <p>So, you posted a story about crypto on your Instagram and the local hoodlums decided to raid your home. They see that your CEX accounts are empty and ask you for your seed phrase.</p> <p>You give them your seedphrase.</p> <p>You lost 1% of your portfolio, but your wealth is still safe in your wallets <strong>behind the passphrase</strong>.</p> <p>You already got it: put a relatively small amount of crypto in the wallet controlled by your seed phrase., but the majority of your portfolio should be stored behind the wallets controlled by the 25 words.</p> <p>This way, even if you find yourself in a situation where you are forced to give out your seed phrase, you can comply and still keep custody of your actual portfolio.</p> <h1>Tutorial</h1> <p>Now that you know the word "passphrase", it's quite easy to find it in your wallet provider.</p> <p>For Ledger users, you go to Settings -> Security -> Passphrase -> Set Temporary and enter your 25th word.</p> <p>For Trezor users, it's similar - go to Settings -> Device -> Security and click toggle next to passphrase.</p> <p>This means that the passphrase will only be effective for this session and once you plug your device out, it will restart.</p> <h1>Pro Tip</h1> <p>You can have practically infinite passphrases.</p> <p>So whenever you feel a certain address gets "heavy", you can always create a new set of addresses and continue accumulating there.</p> <p>And of course, never link your identity to any of the other wallets.</p> <p><strong>TLDR: Use a 25th word so if you lose/are forced to give your 24 words, you still can control the addresses behind the passphrase.</strong></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/BusinessBreakfast3"> /u/BusinessBreakfast3 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12pb835/how_to_hide_your_crypto_using_a_passphrase_25/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12pb835/how_to_hide_your_crypto_using_a_passphrase_25/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>I recently published a post with 10 tips to protect your seed phrase:</p> <p><a href="https://www.reddit.com/r/CryptoCurrency/comments/12o1f73/protect_your_seed_phrase_10_tips_to_secure_your/">https://www.reddit.com/r/CryptoCurrency/comments/12o1f73/protect_your_seed_phrase_10_tips_to_secure_your/</a></p> <p>I was surprised how many people found the concept of passphrase (25th word) fascinating and didn't know about it before.</p> <p>Thus, I'm writing this post to explain what a passphrase is and how it can protect you even further.</p> <h1>Background & Prerequisites</h1> <p>To understand this post, you need to have at least basic understanding of <strong>self-custody</strong>.</p> <p>Understanding seed phrases (12 or 24 words) and how you need to protect those to keep ownership of your wallet.</p> <p>However, even if you do everything correct technically, you're still vulnerable to the $5 wrench attack.</p> <h1>The Wrench Attack</h1> <p>The <strong>$5 wrench attack</strong> is a non-technical but social engineering attack, where you are forced to give out your private keys against your will.</p> <p>It's called the $5 wrench attack because someone can get a cheap wrench, come to your house, and pass any security you have by using violence.</p> <p>Needless to say, many of us would succumb to this in many cases - especially if our loved ones' lives are in danger or we're threatened with loss of freedom by the government.</p> <h1>The Passphrase (25th Word)</h1> <p>A <strong>passphrase</strong> is an extra word you can use on top of your 24 words.</p> <p>This will allow you to control a completely new set of addresses.</p> <p>Having a 25th word is crucial, because you can choose the word yourself - it's not part of the BEP39 word list.</p> <p>This makes it easy to remember and adds extra security in case someone gets access to your 24-word seed phrase.</p> <h1>Handling Wrench Attacks the Right Way</h1> <p>So, you posted a story about crypto on your Instagram and the local hoodlums decided to raid your home. They see that your CEX accounts are empty and ask you for your seed phrase.</p> <p>You give them your seedphrase.</p> <p>You lost 1% of your portfolio, but your wealth is still safe in your wallets <strong>behind the passphrase</strong>.</p> <p>You already got it: put a relatively small amount of crypto in the wallet controlled by your seed phrase., but the majority of your portfolio should be stored behind the wallets controlled by the 25 words.</p> <p>This way, even if you find yourself in a situation where you are forced to give out your seed phrase, you can comply and still keep custody of your actual portfolio.</p> <h1>Tutorial</h1> <p>Now that you know the word "passphrase", it's quite easy to find it in your wallet provider.</p> <p>For Ledger users, you go to Settings -> Security -> Passphrase -> Set Temporary and enter your 25th word.</p> <p>For Trezor users, it's similar - go to Settings -> Device -> Security and click toggle next to passphrase.</p> <p>This means that the passphrase will only be effective for this session and once you plug your device out, it will restart.</p> <h1>Pro Tip</h1> <p>You can have practically infinite passphrases.</p> <p>So whenever you feel a certain address gets "heavy", you can always create a new set of addresses and continue accumulating there.</p> <p>And of course, never link your identity to any of the other wallets.</p> <p><strong>TLDR: Use a 25th word so if you lose/are forced to give your 24 words, you still can control the addresses behind the passphrase.</strong></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/BusinessBreakfast3"> /u/BusinessBreakfast3 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12pb835/how_to_hide_your_crypto_using_a_passphrase_25/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12pb835/how_to_hide_your_crypto_using_a_passphrase_25/">[comments]</a></span>