The main way to protect digital assets is to prevent the wallet private keys from being leaked or stolen.
When it comes to security strategies, Keystore and mnemonic phrases (or plaintext private keys) are different:
Keystore is the encrypted version of the private key. It is not easy to backup by writing it down, but you can store the Keystore in the U disk, instead of email, network disk and other online storage. Keep your Keystore separate from your security password, so that even if the Keystore is stolen, they do not have access to your password.
You need to be more careful when storing mnemonic phrases than with Keystore.
Once the mnemonic phrases are leaked, your assets can be stolen at any time by a third party. It is recommended to use the physical medium to backup, like writing it down on a piece of paper and keeping it in a secure location.
Three Main Reasons Why Your Assets Are Lost
- No wallet backup.
We recommend that after creating the wallet, you backup the wallet immediately. After backing up the mnemonic phrases, make sure the backup is correct before moving on.
- Lost the private key.
The private keys include mnemonic phrases, Keystore, and plaintext private keys. Some users backup mnemonic phrases without verifying them, or do not write it down clearly, which makes them difficult to recognize later. These situations will prevent you from retrieving your assets. Therefore, you must be careful when backing up your wallet and be familiar with using security management tools so that you can retrieve the private keys at any time.
- Backed up the wrong wallet.
Backing up the wrong wallet means that the user has two wallets in the Huobi Wallet, for example, A wallet and B wallet. When the user wants to backup A wallet, he mistakenly backs up the private key of B wallet.
Therefore, we recommend that when users backup wallets, they must import the backup private key into the wallet and confirm that the backup is correct.