7. Mnemonic Key Security

PROBLEM

Unlike traditional banking, crypto wallets are self-custodied — meaning users are fully responsible for storing their wallet credentials. If a mnemonic (seed) phrase is lost, access to the wallet and its funds is permanently lost, with no way to recover them through a third party.

Unfortunately, most users underestimate this responsibility and rely on insecure storage methods such as screenshots, note apps, unencrypted files, or emails — all of which pose serious security risks.

SOLUTION

While we recommend offline cold storage as the most secure method for storing mnemonic keys, the THAT app also offers an option to encrypt and store your seed phrase securely in your Apple iCloud Keychain. This leverages Apple’s security infrastructure while giving users the flexibility to manage their keys according to their preferences.

Importantly, users always retain full control over their wallet credentials and can export or back up their keys offline at any time.