Reviewed by Erika Rasure
IOTA is a distributed ledger platform designed for the Internet of Things, enterprise needs, eHealth, and digital identity ecosystems. Its native token, IOTA, is also used by some speculators as an investment. Because the token has market value, it has been stolen in the past and should be safeguarded using several available techniques.
Here are a few actions you can take to keep your IOTA safe.
Key Takeaways
- IOTA recommends using its official wallet, Firefly.
- Firefly can generate a recovery phrase that will make your key more difficult to acquire.
- Storing the seed phrase securely and offline will keep your tokens safe.
- The more steps you implement to access your seed phrase, the more secure it is.
1. Use Firefly
While IOTA is supported by many wallets, Firefly is IOTA’s official wallet. Firefly lets you manage your IOTA and any NFTs, and is recommended by the developers.
IOTA Firefly
2. Generate a Recovery Phrase
Bitcoin generates a private key for users, which can be turned into a seed phrase using wallets or other utilities. The official IOTA wallet Firefly generates a 24-word recovery phrase that cannot be recovered if lost. This phrase is also called a mnemonic phrase or seed phrase, and you should back it and keep it somewhere safe.
3. Use a Hardware Wallet
IOTA recommends using a hardware wallet, which are devices that store your seed phrases for you. Its Firefly wallet supports the Ledger Nano S and X hardware wallets, which are usually called cold storage (or offline storage). The developers also recommend writing seed phrases down on a paper backup or other physical medium.
When making a paper backup, it is advisable to print it from your home computer (not a public one) or to use pen and paper and keep the copy under lock and key in a safebox or safe at home. If you use a printer, make sure to use a USB cable directly to the printer. This will prevent anyone from intercepting your wireless signal. Clear its cache immediately after printing to prevent anyone from reprinting your seed phrase.
Note
The IOTA network does not use a blockchain. It uses a directed acyclic graph it calls Tangle—a non-linear type of distributed data structure hosted by nodes.
If you plan on storing your seed in a disk, make sure that it is encrypted and requires passwords for logging in. The same holds for online password databases or password managers.
What Is the Right Meaning of IOTA?
When used not regarding cryptocurrency, iota usually means a very small amount of something.
How Much Is 1 IOTA?
On Nov. 22, 2024, 1 IOTA was worth $0.1884.
Is IOTA a Greek Letter?
Yes, Iota is a letter of the Greek alphabet.
The Bottom Line
The basic idea behind these strategies is to multiply the number of encryptions or steps needed to protect your seed phrase. This will make it difficult for hackers or thieves to access it. You should also never leave your hardware or paper wallets lying around or place them under the care of people you do not know. Through careful planning and safekeeping, however, users can keep their IOTA safe and away from the prying code of hackers.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes online. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author owns BTC, ETH, ADA, and XRP.