BitFi crypto wallet had come under intense scrutiny when the “unhackable” wallet was allegedly hacked earlier this month. It took painstaking interviews and Livestream by promoter John McAfee and CEO Daniel Khesin to improve the public perception of the wallet.
In their live stream with Adam Guerbuez, the CEO repeatedly mentioned about BitFi’s security phrase being the most important part of the security of the device. Now, the wallet has released guidelines on its website to set a proper security phrase.
So, How Do You Do It?
The primary and critical step in setting up your Bitfi hardware is that you should give this section the most attention. The phrase that you set for your wallet is what controls all your money and assets and if you do this properly the phrase will offer impenetrable protection (better than any other form of cold storage) and simultaneously give you the option to commit this phrase to memory so that there are no long-term security weaknesses.
The security of a properly set secret phrase as required by the Bitfi hardware wallet is approximately one billion times greater than the encryption offered by SSL encryption, which is the most commonly used technology for websites to securely transmit data from browser to server.
The wallet recommends using the Diceware method to attain absolute security. It is a simple method but makes truly impenetrable secret phrases. Add to this the additional anchor phrase that is required by your wallet and this adds millions of additional years to access your wallet. The only drawback to using this method is that the phrase set using Diceware is not as easy to memorize as a phrase that you can create yourself using unique words and you may have to write it down somewhere which is a security threat, especially in some environments.
Remember: the most powerful passphrase ever created will completely fail if someone finds a document with that phrase written on it. Therefore in some circumstances, it may be better to settle for a phrase that can be guessed by a sophisticated attacker in only 10 million years but without writing down anything. If you do it this way, there is no trace of your secret phrase anywhere.
Points To Be Noted
- When you are setting your phrase, you will be required to enter a minimum of 34 characters which includes a minimum of 3 special characters (such as $, #, ^, %, etc.) or a phrase with at least 45 characters if you wish to not use special characters.
- If you will not use the Diceware method, you need to take some time and invest some effort into creating your secret phrase. This single phrase will control all your money and assets and will give you access into all blockchains that are supported by the Bitfi hardware wallet and ones that will be added to the wallet in the future.
- Do not use any common phrases, song lyrics, movie dialogues and so on.
Once you have properly set your anchor phrase and the secret phrase, you can start using your wallet. The company recommends that the user is acquainted with using the wallet and are comfortable that you have properly secured or memorized your secret phrase by starting with small balances.