Dogecoin insider Mishaboar has issued crucial security updates to newbies on the crypto market regarding seed phrase safety. Taking to the X social media platform, Mishaboar informed his audience about the dangers of cold wallets despite their overall perceived safety for digital currencies.
Cold wallets and crypto seedphrase fragility
It is worth noting that cold wallets are generally considered safer for safeguarding one’s assets, especially for long-term storage. However, some users have misconceptions about this mode of storing assets.
The Dogecoin developer clarified that cold wallets do not actually store users’ coins but rather only keep the seed phrase. He said the digital currencies still reside on the blockchain and can be spent by anyone with access to the seed phrase.
This is still a crucial reminder for newbies (and not only, it would seem).
Your cold wallet doesn’t actually “hold” your coins – it “just” stores your seed phrase safely.
Your coins live on the blockchain, not inside any device, and can be spent by whoever has your seed… https://t.co/dkGRAhjdwz
— Mishaboar (@mishaboar) June 23, 2025
He noted that generating a new seed phrase from a possible device reset may lead to funds loss. Considering that the seed phrase is all that matters, he advised keeping multiple offline backups — up to three — in secure spots.
According to him, this post was triggered following conversations on Reddit about the Ledger wallet update that led to significant BTC loss. Such losses are common in the digital currency ecosystem, necessitating occasional warnings from top industry experts.
Crypto safety is everyone’s business
While Mishaboar’s update comes at a crucial moment with broader market volatility, other top entities in the industry are also known to caution their communities on basic security tips.
The Binance CEO, for instance, is known to caution exchange users about scam tricks by some accounts on the platform. Ideally, these Binance warnings cover AI deepfakes, phishing scams and even P2P linked exploitations.
There is a consensus that crypto scams are proliferating, leaving millions of users vulnerable. Industry experts’ safety tips and scam alerts are considered vital resources to help the community ward off any kind of mishap.
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