How To Safely & Securely Be Your Own Bank

This video demonstrates how to recover or restore a Trezor Mode T, from the minimum set of shares of a Shamir backup.

This video demonstrates the importance of checking the current Shamir mnemonic backup on a Trezor Model T, before committing any coins or tokens to the wallet.

A Shamir Backup is a security feature available on the Trezor Model T hardware wallet. It addresses the risks associated with protecting your recovery seed, which is crucial for accessing your digital assets. With Shamir Backup, you create multiple recovery shares, each containing a portion of the mnemonic seed. By setting a threshold, which determines the number of shares required to recover your wallet, you enhance the security of your backup. Here's an overview of using Shamir Backup with the Trezor Model T: 1. Shamir Backup Process: Instead of a single recovery seed, you generate multiple recovery shares. Each share consists of 20 or 33 English words representing a part of the mnemonic seed. Combining the required number of shares will produce the master secret or seed needed to recover your wallet. 2. Setting up Shamir Backup: Trezor Suite can automatically set up your device with Shamir Backup using twenty-word shares, providing 128-bit strength. If desired, you can adjust the strength to 33-word shares, offering 256-bit strength during the setup process. You choose the number of shares to be generated, ranging from one to a maximum of 16. 3. Recovery Share Example: Let's consider a complete Shamir backup with three recovery shares. The first three words are the same in all three shares. The first and second words identify the shares and are consistent across all shares. The third word encodes the group index used in Shamir backup systems. 4. Threshold: The threshold is the predetermined number of shares needed to access your wallet. Any individual share can be used as long as the threshold is met. The order of the shares is not important when creating a new wallet, and you can decide the threshold based on your needs. 5. Recovery with Threshold: For example, with a Shamir backup of three shares and a threshold of two of three, any two shares can reconstruct the wallet. Even if one share is lost, the private keys can still be recovered. If thieves steal one share, they won't be able to recover the wallet with a single share. 6. Comparison to Single Recovery Seed Backup: Shamir Backup differs from single recovery seed backup in several aspects. Shamir Backup allows you to generate up to 16 recovery shares of 20 or 33 words, while single recovery seeds consist of 12, 18, or 24 words. Additionally, Shamir Backup uses a different word list compared to BIP39 recovery seeds, introducing unique words. 7. Lost or Stolen Shares: If some shares get lost or stolen, Shamir Backup provides a significant advantage. As long as the compromised shares do not reach the required threshold, individual shares do not reveal any information about the shared secret. 8. Passphrase and Hidden Wallets: You can use a passphrase to create hidden wallets on a Trezor Model T with Shamir Backup, adding an extra layer of security to your wallet. 9. Converting Existing Trezor Wallet: Currently, it is not possible to directly convert an existing recovery seed into a wallet that uses Shamir Backup. To transfer your funds, you would need to send valid transactions from the existing wallet to a new wallet created with Shamir Backup. However, third-party conversion tools can help convert a 12 to 24-word mnemonic recovery seed into Shamir shares for enhanced backup security. Remember, the specific steps and features may vary, so it's recommended to refer to the official documentation or guides provided by Trezor for the most accurate and up-to-date instructions..

This video demonstrates how to create a Shamir style mnemonic backup on a Trezor Model T.

This video tutorial demonsttrates how to create a hidden wallet with a Trezor device.

This video tutorial demonstrates connecting a hidden wallet on a Trezor device to a 3rd party wallet.

This video tutorial covers the basics of creating hidden wallets with a Trezor device.

This video tutorial demonstrates how to use the Temporary Passphrase on the Ledger Nano device.

This video tutorial demonstrates how to navigate the Passphrase menus of the Ledger Nano device.

What Is a Hidden Wallet? A hidden wallet is an innovative way to store cryptocurrency securely. It is generated from a 12-24 word mnemonic backup phrase and an additional word or passphrase, which creates a unique set of private keys for the wallet. This provides an extra layer of security for your digital assets. This extra word or passphrase is often referred to as the 25th word. Ledger: How To Set Up A Passphrase? Ledger website link: https://support.ledger.com/hc/en-us/articles/115005214529-How-to-set-up-a-passphrase-?docs=true Trezor: Standard & Hidden Wallets Trezor website link: https://trezor.io/learn/a/standard-hidden-wall Advantages of Using a Hidden Wallet • By using any word as the 25th word, you can generate multiple wallets on one device. Each wallet set is based on the same mnemonic phrase but is differentiated by the passphrase word you create. For example, you could create and manage wallets for family members, all on one device. • For optimal security, it's recommended to keep a small amount of coins in your Default wallet and store the bulk of your holdings in the Hidden wallet. In the event that a thief obtains your 24-word mnemonic backup, they will only be able to access the Default wallet with the small balance. Disadvantages of Using a Hidden Wallet • For added security, a unique set of private keys is generated for each wallet using a passphrase or 25th word. Consequently, if the passphrase or 25th word is forgotten or lost, access to the coins stored in the wallet will be lost. To ensure the safety of your coins, it is essential to remember your passphrase or 25th word. • Typically, passphrase words are case sensitive. These passphrase words will create different private keys and wallets: P@ppyD33z pappydeez PappyDeez • Additionally, the hardware device will accept any passphrase, regardless of whether it is a BIP-39 word or not. If you open a hidden wallet that you know contains coins, but find it empty with no transactions, it is likely that you made a typo when entering the passphrase into the entry form. Tips for Managing the 25th Word or Passphrase If you store the mnemonic backup phrase on a recovery sheet, then store 25th word, separately from the mnemonic backup. If someone gets your mnemonic backup, then they will not have your 25th word for the hidden wallet. Using your password manager application may be an option for storing the 25th word. Create an entry that obscures its true purpose and have the password manager generate a simple passphrase that you can copy and paste into the entry form when called for. This way you will not need to rely on your own memory to recall the hidden passphrase word.

Let's Recap What We Have Covered So Far... Securing the Cryptocurrency Computer Is my cryptocurrency computer safe as long as I run anti-virus and anti-spyware software on it? Yes, but only partly... For the highest level of security while using your computer, you must login with Standard credentials, NOT Administrative credentials! Securing Email Accounts Is my Gmail account secure enough, to use as a login for my cryptocurrency exchange account? Gmail is a popular email service, but it does not encrypt your emails end to end, and is often the target of hacking attacks. For the highest level of email security, use an email service which encrypts your emails, such as Protonmail. Email services, such as Gmail are fine for temporary sign-ups, where you assume that your inbox will be flooded with spam emails. Using Password Managers Where should my passwords be saved? a) On a post-it note. b) Stored in my brain. c) Nowhere, I just use my SSN. d) Secured by an encrypted password manager. Secured by an encrypted password manager. Passwords written on scraps of paper or in easily accessible locations, are clearly insecure. Memorizing your passwords may be fine when you are young, but time and declining mental capacity, may cause you to forget your passwords. Using easily discovered passwords like phone numbers, SSN, birth dates, pet’s names, etc. are clearly insecure passwords. An encrypted password manager is one of the best methods of managing many different account passwords. With only the need to remember one password that accesses the password manager itself. Using Two Factor Authentication If your email app, bank app, or cryptocurrency exchange offers two factor authentication, for accessing the site, it would be best practice to make use of this feature. It will help prevent unauthorized people from accessing your accounts. Cryptocurrency Wallet Basics Your cryptocurrency coins and tokens are stored... a) In my cryptocurrency wallet. b) On my computer. c) On the blockchain mainnet of the individual coin. On the blockchain mainnet of the individual coin. Your coins do not exist in your wallet. They only exist on the coin’s blockchain mainnet. They are nothing more than blocks containing the transactional information that you have made with your wallet. Essentially, that are ledger entries existing on a network of computer nodes that support the blockchain network of the coin you hold. What's In My Cryptocurrency Wallet? Your cryptocurrency wallet only contains the private key information, which allows it to unlock the transaction information on the blockchain. It can only access the blocks of the blockchain that are associated with those keys. The private keys are require to authorize a send transaction from the wallet. Differences Between Custodial & Non-Custodial or Self-Custodial Wallets True or False, When using a Custodial wallet, I have full control of that wallet's Private Keys. FALSE A custodial wallet is a wallet that is held by a 3rd party, like your cryptocurrency exchange wallet or the wallet used by your broker to hold your coins. A custodial wallet requires you to trust the 3rd party to handle your cryptocurrencies in an honest fashion. A non-custodial or self-custodial wallet is a wallet that you have full control over. You control the private keys. You are responsible for any actions taken with the coins or tokens held by the wallet. Which is Better, A Software Wallet or a Hardware Wallet? Which type of wallet should I choose? a) Software wallet b) Hardware wallet c) Smartphone app d) Paper or metal wallet e) All of the above f) None of the above Whatever you are most comfortable with. It must be your choice! Each wallet type has its advantages, disadvantages and inherent risks. Be aware of what they are and how to handle them. But, if you are looking for an ‘all around’ solution, then a software wallet secured by a hardware device will give the security of a hardware device with the convenience of a software wallet. For example, an Exodus wallet secured by a Trezor device. Securing the Mnemonic Backup Phrase Which component of the cryptocurrency wallet system, is the most important? a) Cryptocurrency wallet b) Cryptocurrency computer. c) Mnemonic backup or seed phrase Mnemonic Backup or Seed Phrase Your mnemonic backup or seed phrase is the most important component of your cryptocurrency wallet system. You can lose your computer and still restore the wallet applications to a new computer. You can lose your wallet, and as long as you have your mnemonic seed phrase, you will be able to re-create the private keys on any compatible wallet and restore your connection to your cryptocurrency assets. Coming Soon, Advanced Techniques: • For Securing Your Password Manager • Using a Yubikey Device to Secure Applications • Using Hidden Wallets on Trezor and Ledger Devices • Storing the Mnemonic Backup on a Stainless Steel Case • Using the Shamir Backup with the Trezor Model T • Creating Shamir Shares From a 12 to 24 Word Mnemonic Backup • + Tips for Avoiding Scams and Phishing Attempts

A demonstration of restoring a Trezor Model T hardware device from the mnemonic seed phrase.

A demonstration of restoring a Trezor One hardware device from the mnemonic seed phrase.

A demonstration of restoring a Ledger Nano hardware device from the mnemonic seed phrase.

A demonstration of restoring a software wallet from the mnemonic seed phrase.

What Is a Mnemonic Phrase? A mnemonic is any word, acronym, or phrase used to help you remember something important. For example: The phrase, “Lefty loosey, righty tighty.” Which refers to the direction of turning to loosen or tighten a screw or jar lid. How is the Mnemonic Phrase Used For a Cryptocurrency Wallet? The 12 to 24 word mnemonic backup phrase is the result of translating your wallet’s Private Key from binary, which is the language computers use, consisting of 1’s and 0’s into the language that you can understand and possibly memorize. Visualizing the Process of Generating Private Keys from the Mnemonic Phrase Imagine a key duplication machine, like you would use to make a copy of your car or house key. The Master key or original key would represent the Mnemonic Backup Phrase. The duplicated key would represent the Private Key of the wallet that has been created from the Mnemonic Phrase. Either key could be used to open the wallet! Why Is the Mnemonic Phrase So Important? 1) It is essentially a text version of your wallet’s Private Key. 2) It is often the only way to recover a lost, damaged or stolen wallet. 3) It can be used to create a new copy of a wallet, with full access to the coins contained by the original wallet. Wallet Creation Process During the process of creating a new wallet, the Private Key is translated from a binary format into 12 to 24 readable words, which you record onto a recovery sheet. These words should be recorded in an offline fashion and printed in ALL CAPS, in order to make it easier to read when it is time to restore the wallet. Wallet Restore Process During the process of restoring or recovering an existing wallet, the Private Key is created from the 12 to 24 words, which you entered from the recovery sheet. These words are then translated into a binary form and stored by the wallet’s software. These words must be entered in the correct order or the recovery will fail. Words entered out of order may yield an empty wallet and not the wallet you wish to recover with your coins. Something To Be Aware Of... The Mnemonic Phrase can be entered into any compatible wallet to recover or duplicate a hardware or software wallet. If you enter the Mnemonic Backup from a hardware wallet into a software wallet you will compromise the security of the hardware wallet! Hardware wallets keep the Private Keys offline, where the software wallet maintains the Private Keys within the application itself. Steps to Protect the 12 to 24 Word Backup Phrase • Laminate paper mnemonic backups to protect it from water damage. • Use a steel case mnemonic backup, which will protect it from fire and water. • Avoid connecting to the internet while working with the mnemonic backup. • Keep the mnemonic backup stored in a secure location. • Do not keep digital copies of the backup on the computer or on online cloud storage services. • Do not expose the mnemonic backup phrase to any camera or recording device. • Never use the Mnemonic Phrase as a means to log into a web wallet. This method should only be used as a last resort, to access the wallet and move the coins to a new secure wallet.

This video tutorial covers how to secure an Exodus dektop wallet with a Trezor hardware device.

This video tutorial covers how to secure a Persistence web wallet with a hardware device.

This video tutorial covers how to secure a Theta web wallet with a hardware device.

This video tutorials covers how to secure 3rd party software wallets with a hardware device.

This video tutorial covers how to secure a Metamask web browser extension wallet with a hardware device,

This video tutorial covers how to secure the Keplr web browser extension wallet with a hardware device.

Why Would I Need to Reset My Trezor Device? 1) You have forgotten your access PIN. 2) You have your PIN but wish wipe out the old accounts and start fresh, or you wish to gift the device to someone else and want to be sure it is clear. 3) You received a device from a friend or from a questionable source. After a device has been reset, you can set it up as a new device or restore it from the mnemonic backup phrase. A demonstration video on restoring a Trezor device will be done in a separate video in the Mnemonic Backups section of videos.

This video tutorial demonstrates the Check Backup operation on the Trezor Model T device using the Advanced Recovery Check.

This video tutorial demonstrates the Check Backup operation on the Trezor One device for both the Standard Recovery Check and the Advanced Recovery Check.