Part 3/9:
Some opt to encrypt their seed phrase in a password manager or cloud storage, assuming digital convenience equals safety. Yet, this method exposes your seed to online threats.
The danger: Hackers target password managers and cloud services, employing malware, phishing attacks, or software vulnerabilities to steal sensitive data. Hundreds of millions of dollars in crypto have been lost this way. Relying on online storage for seed phrases defeats the purpose of having a cold wallet in the first place.
Key takeaway: Never store your seed phrase online if your goal is to keep it offline and secure.