Category: Blog

Cryptocurrency is becoming increasingly popular, and to use it, you need a crypto wallet. The foundation of wallet security is the seed phrase — a set of random words that allow you to recover access to your wallet. In this article, we’ll explore why guessing a seed phrase is nearly impossible and what risks you face if you lose it.

What Is a Seed Phrase?

A seed phrase (or recovery phrase) is a sequence of 12, 18, or 24 random words generated when you create a cryptocurrency wallet. It acts as the “key” to your wallet, enabling you to restore access if you lose your device or reset your data.

How Difficult Is It to Guess a Seed Phrase?

The security of a seed phrase lies in the enormous number of possible combinations and advanced cryptography. Here’s why it’s nearly impossible to guess:

A Vast Number of Combinations

Each word in a seed phrase is chosen from a predefined list of 2048 words. For a 12-word phrase, this results in:

2048^12 ≈ 5.4 x 10^39 combinations.

To put this into perspective:

• This is more than the number of atoms in the observable universe.
• Even if a supercomputer were generating billions of guesses per second, it would take trillions of years to find the correct combination.

Randomness of Selection

The algorithms used to generate seed phrases create fully random sequences, making it impossible to predict or recreate them.

Blockchain and Hashing

Seed phrases work in conjunction with cryptographic hashing, adding an extra layer of security. Even if someone knows part of your phrase, it wouldn’t help them guess the remaining words.

What Are the Risks of Losing Your Seed Phrase?

While a seed phrase ensures high security, it also places responsibility on the user. Losing this phrase can have irreversible consequences:

1. Permanent Loss of Access

If you forget or lose your seed phrase and don’t have a backup, you will lose access to your wallet forever. This is irreversible since neither customer support nor wallet developers can recover it.

2. Risk of Unauthorized Access

If someone else obtains your seed phrase, they can transfer your wallet to their device and gain full control over your funds.

3. Human Error

Forgetting, misplacing, or accidentally deleting the record of your seed phrase are common risks that can result in losing access to your crypto assets.

How to Protect Your Seed Phrase

To avoid problems related to losing or compromising your seed phrase, follow these recommendations:

• Write It Down by Hand: Avoid relying on digital devices — instead, write your seed phrase on paper and store it in a secure place.
  
  
• Create Backup Copies: Keep multiple copies in different secure locations, such as a safe or a bank deposit box.
  
  
• Never Share Your Phrase: Do not share your seed phrase with anyone, even those you trust.
  
  
• Use Protective Devices: Consider purchasing metal plates designed to store seed phrases. These protect your phrase from water, fire, and physical damage.

Why Is Seed Phrase Protection So Important?

A seed phrase is not just a set of words — it’s the key to your crypto assets. While it’s impossible to guess due to its cryptographic complexity, forgetting or losing it means losing access to your wallet forever.

How to Start Using Cryptocurrency 

Coinsdrom offers a safe and simple way to buy popular cryptocurrencies like Bitcoin and Ethereum. You don’t need to understand mining or complex technical processes — just:

1. Create an account on Coinsdrom.
2. Complete a quick verification process.
3. Purchase cryptocurrency using your credit card.

Coinsdrom ensures the buying and selling process is easy and secure, allowing you to focus on enjoying cryptocurrency.

A seed phrase is the foundation of your crypto wallet’s security. Guessing it is nearly impossible, but losing or sharing it could result in permanent loss of access to your crypto assets. Ensure your seed phrase is stored securely, and start your cryptocurrency journey safely and easily with Coinsdrom.

Ready to Get Started?

Sign up on Coinsdrom today and explore the cryptocurrency world with a secure approach!

2025 is shaping up to be an eventful year, especially for those buying crypto. With significant political, regulatory, and economic developments on the horizon, understanding the key events can help you navigate the ever-changing crypto landscape. Let’s dive into the major factors to watch out for this year.

Upcoming FED Meetings and Interest Rates

One of the most critical events to monitor this year is the Federal Reserve’s approach to interest rates. While markets had initially expected more substantial rate cuts, the FED plans only two cuts in 2025. This “higher for longer” strategy could keep borrowing costs elevated, which might dampen enthusiasm for riskier assets like cryptocurrencies.

For those buying crypto, higher interest rates could mean a slower pace of price growth compared to more accommodative monetary conditions. It’s essential to watch the timing and tone of FED meetings throughout the year as they often set the mood for financial markets. 

Paul Atkins as SEC Chairman

A major shakeup in the regulatory landscape comes with Paul Atkins taking the helm as the new chairman of the Securities and Exchange Commission (SEC). Known for his crypto-friendly stance, Atkins’ leadership is a significant departure from previous administrations. This shift could lead to more clarity and less friction for crypto projects and exchanges.

For anyone buying crypto, this could mean a smoother experience on platforms like Coinsdrom, as fewer regulatory hurdles may lead to faster innovation and better services. Keep an eye on announcements from the SEC—2025 could mark a turning point for crypto regulations.

The Trump Administration Returns

The new Trump administration and a Republican-led Congress are expected to bring a pro-business environment, which could also benefit the crypto industry. With less regulatory pressure and a focus on fostering innovation, the broader economic environment might become more supportive of digital assets.

This political backdrop could encourage more adoption and development in the crypto space. For beginners, this could translate into a more stable and welcoming ecosystem as businesses and governments become more crypto-aware.

Why These Events Matter for Those Buying Crypto?

For those new to crypto, it’s easy to overlook how external factors like interest rates, regulations, and political leadership influence the market. However, these elements play a crucial role in shaping the crypto landscape. Understanding them helps you make more informed decisions about your interactions with the market, whether it’s buying crypto for the first time or using a crypto exchange to make new purchases.

Conclusion

This is shaping up to be a year filled with opportunities and challenges for those buying crypto. From FED decisions and SEC leadership changes to a potentially crypto-friendly political climate, there’s plenty to keep an eye on. Staying informed about these developments can help you better understand the market dynamics and make the most of what the year has to offer.

Coinsdrom is here to make your journey into crypto as smooth as possible, no matter what 2025 brings. Whether you’re just getting started or exploring the world of digital assets, this is the year to stay informed and engaged.

At Coinsdrom, your safety is our top priority. We understand that buying cryptocurrency can seem daunting, especially with concerns about security. That’s why we’ve implemented industry-leading measures to ensure you buy crypto safely and confidently. Here’s an overview of the steps we take to protect you and your assets.

How to Buy Crypto Safely with Robust Security Measures

1. Cold Storage for Maximum Asset Protection

One of the most critical steps we take is storing the majority of customer funds in cold storage. Cold storage means your assets are kept offline, away from potential online threats. This significantly reduces the risk of hacking and ensures that your crypto remains safe, no matter what. 

At the same time, as an authorized crypto exchange, we don’t store coins on customers’ behalf for long term. Once a transaction is settled, we automatically send crypto to your wallet. 

2. Encryption for Data Security

We use advanced encryption technologies to protect your personal and financial data. Every piece of information you share with us is encrypted and safeguarded from unauthorized access. This ensures that your details remain confidential and secure at all times.

3. KYC (Know Your Customer) Verification

To create a safer environment for everyone, we follow strict KYC procedures. By verifying the identity of our users, we help prevent fraudulent activities and ensure that only legitimate individuals can access our platform. While it might seem like an extra step, it’s a vital part of making sure you buy crypto safely.

4. Two-Factor Authentication (2FA)

We encourage and support two-factor authentication for all user accounts. With 2FA, even if someone manages to get hold of your password, they still can’t access your account without the second layer of verification. It’s a simple yet powerful way to keep your account secure.

Secure Transactions and Monitoring

Every transaction you make is monitored for suspicious activity. Our systems use advanced algorithms to detect and prevent unauthorized actions. This means that if anything unusual happens, we’re alerted immediately, allowing us to take swift action to protect your assets.

Education and Awareness

We also believe in empowering our users with knowledge. That’s why we provide resources and tips to help you stay safe while navigating the crypto world. From choosing strong passwords to avoiding phishing scams, we’re here to guide you every step of the way.

A Trusted Environment for Crypto Enthusiasts

We’ve built our platform to be one you can trust. Whether you’re a beginner or a seasoned user, our mission is to make sure you buy crypto safely. With cutting-edge technology, robust security protocols, and a dedicated team working behind the scenes, we’re here to ensure your experience is both safe and seamless.

Conclusion

Buying crypto doesn’t have to be a risky venture. At Coinsdrom, we’ve taken every precaution to ensure your security. From cold storage and encryption to KYC and transaction monitoring, our measures are designed to give you peace of mind. So, when you’re ready to buy crypto safely, you can count on us to have your back every step of the way.

The AI technology has come to a point where it is now generating clones of voices, faces, and even entire personas, using them to target your hard-earned crypto.

These scams combine AI-generated fake content with the growing popularity of crypto, and it is a deadly cocktail. To avoid dangerous crypto scams, you need to understand the mechanics of these schemes, recent examples, and proactive steps to protect your assets.

What Exactly Are Deep-Fake Crypto Scams?

Deep-fake crypto scams involve using AI to create fake but highly realistic videos or audio clips of influential people. Scammers use these fake materials to impersonate tech leaders, celebrities, or public figures to endorse scam crypto projects.

By doing so, they strive to build credibility and lure victims into sending their funds to fraudulent platforms. The crypto space saw a 217% increase in deep-fake-related scams in 2024 and $6.3 billion in losses in the first quarter alone. These scams are expected to get even worse in the coming years.

At Coinsdrom, we make sure our customers can buy and sell crypto safely, and avoid dangerous crypto scams. Be it buying crypto with credit cards, wire transfers, or local payment solutions, we have measures in place to keep your funds and data safe.

A Look at Some Recent Deep-Fake Crypto Scams

Deep-fake scams have become alarmingly common, with fraudsters targeting crypto market participants through well-crafted videos and fake endorsements.

Tim Cook’s Crypto Launch Scam

Scammers created a deep-fake video of Apple CEO, Tim Cook, during the iPhone 16 launch, asking viewers to pour their funds into a fake crypto project. Embedded QR codes and links channeled victims to fraudulent platforms, causing huge losses.

Elon Musk’s $20 Million Giveaway

Another scam involved a deep-fake video of Elon Musk promoting a crypto giveaway. The video went viral online and fooled many before warnings were issued globally.

Trump’s Crypto Giveaway

In one alarming case, a website using the “Make America Great Again” logo and Donald Trump’s image was launched. It claimed to be hosting “Trump’s biggest crypto giveaway of $100,000,000”, urging users to send crypto to a specific address with a promise of doubling their amount.

This scam was promoted through deep-fake videos, featuring manipulated speeches of Trump and Elon Musk endorsing the giveaway. Though the voices sounded like the figures, the lip movements were way off—a common deep-fake red flag.

These cases highlight the sophistication of deep-fake scams and the need for vigilance in the crypto space.

How to Avoid Dangerous Crypto Scams Like Deep-Fake 

As deepfakes get more realistic, you need to be proactive. Here are some steps you can take to avoid dangerous crypto scams:

• Use AI for Defense

Just as AI is used to create deepfakes, it can also detect them. Tools like deep-fake detectors and video authentication software can help verify the authenticity of video content. Many of these are available for personal use or as browser extensions.

• Verify Sources

Always cross-check any crypto-related announcements or promotions with official company websites or verified social media channels. If a video or live stream looks suspicious, research before you act.

• Watch Out for Urgency

Scammers create a sense of urgency, telling you to act fast on limited-time offers or guaranteed returns. Legit initiatives do not require you to rush.

• Look for Red Flags

Pay attention to video quality, inconsistencies in speech, or unusual phrasing. Trust your gut if something feels off.

• Stay Educated

The best defense is awareness. Stay up to date with the latest scams and learn from trusted sources.

Deep-fake crypto scams are a reminder of the dark side of technological progress; but with the right precautions, you can effectively avoid dangerous crypto scams. We, at Coinsdrom, prioritize advanced security features, transparent payment processes, and user-friendly interfaces that can help protect you from such scams. Our key focus is to make the experience of exchanging crypto safer and smoother for all users.Risk warning: The exchange of digital currency is considered a risky transaction with highly speculative outcomes. Purchasing or selling Cryptocurrency carries significant risk. The company does not act as a financial advisor, does not provide investment advisory services or guidance. The company does not guarantee any profit from any activity associated with its services. You should carefully consider if holding digital currency is suitable depending on your financial circumstances.