A key developer in the Dogecoin community, known as Mishaboar, has issued a critical warning regarding the security of cryptocurrency seed phrases. Mishaboar cautioned against the common practice of storing seed phrases in online password managers like LastPass. He described these services as risky and potentially vulnerable to breaches. 

Instead, he advised users to store their seed phrases offline in several secure locations. Mishaboar stressed that any seed phrase previously saved in an online password manager should be considered compromised, and users should move their Dogecoin to a new wallet immediately.

Mishaboar also highlighted the challenges of ensuring a secure environment for managing seed phrases. Even offline devices can be compromised by malware that captures data and sends it once an internet connection is restored. 

He recommended using a freshly set-up Raspberry Pi with a clean operating system and no network connections to type and store the seed phrase on an offline USB drive. Afterward, the SD card should be completely wiped to eliminate any potential threats.

The level of security should reflect the value of the cryptocurrency holdings, Mishaboar noted. Given the volatile nature of cryptocurrencies, even small amounts can significantly increase in value over time, making strong security measures essential.

As Dogecoin and other digital assets grow in popularity and value, users must adopt stringent measures to protect their investments, the DOGE contributor is convinced. Mishaboar, though, is not the latest to call for caution in cryptocurrencies in recent days. Ethereum founder Vitalik Buterin, for example, warned against cryptocurrency scams posing as “official” in a recent post on Farcaster.

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.