Good info here. Lucius can you point me towards a tutorial on further explaining the risks and backup/storage techniques you mention?
In general, the matter is quite simple, you just need to follow a few basic recommendations :
- Never save your backup (seed words) online (e-mail, cloud, plain text document).
- One backup is not enough, you need at least two - preferably not saved in the same location.
- The computer you are using should have adequate antivirus and anti-malware protection, and always keep the latest update for the OS you are using.
- Every action on the hardware wallet should be carefully checked and only then approved by pressing the HW buttons - so you protect yourself from a possible attack by clipboard malware.
- Last but not least, you can protect your seed by adding a passphrase (extra password) that will serve as an additional safeguard in case someone comes into possession of your seed.
- An additional warning - it is not wise to tell others that you own cryptocurrencies, then you open the possibility of becoming a victim of what we call $5 wrench attack.
Source
And a person who doesn't know how to swim is in great danger if they're dropped in a pool. However, if they wear a life jacket the chances of getting drown are definitely less.
It makes sense, I just wanted to emphasize that a large number of HW users do some things wrong because they believe that it is important to protect only the device, while everything else is less important.
