Cypherock Guide: How to Use Cypherock Wallet!

Last updated: Feb 06, 2024
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Cypherock is a company that specializes in providing advanced security solutions for digital assets through their hardware wallet, the Cypherock X1 Vault. Unlike traditional hardware wallets that rely on a recovery phrase, Cypherock eliminates seed phrase vulnerability while still allowing for trustless self-custody. The wallet has been audited by Keylabs, a firm known for identifying vulnerabilities in other major hardware wallets, and has been found to be an innovative wallet that uses best practices in hardware and software security.

One of the unique features of Cypherock is its use of Shamir Secret Sharing to decentralize private keys. This cryptographic technique splits the private key into five parts, enhancing security by eliminating single points of failure. Users can also import up to four private keys, allowing the device to be shared between users or for multi-wallet private key management.

Cypherock X1 Vault is EAL6 certified, offering bank-grade security. It is also compatible with Wallet Connect, allowing users to easily access decentralized applications (DApps) and decentralized finance (DeFi) platforms. The device itself, along with the X1 card and pin, acts as an effective three-factor authentication (3FA) system for high-security use cases. Additionally, Cypherock is developing an inheritance feature that will enable the passing of crypto assets to loved ones.

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Setting up Cypherock involves purchasing the device from the official Cypherock website and downloading the cySync software. The software guides users through the setup process, including creating a cySync password, authenticating the device, and setting up or importing a new wallet.

Cypherock can also be used as a seed phrase vault, allowing users to import and secure seed phrases from different software wallets. This eliminates the single point of failure risk associated with paper backup copies of software wallets. Additionally, Cypherock enables portfolio management for up to four different wallets, making it convenient for users to separate their funds for different purposes.

In case of loss or restoration, Cypherock provides several options. Users can restore their wallet by purchasing a new device or accessing the recovery phrase. The company is also developing a mobile app that will allow users to recover their funds using their mobile phone.

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Overall, Cypherock offers a secure and versatile solution for crypto hodlers, combining the convenience of software wallets with the security benefits of hardware wallets. With its robust security features and innovative approach to seed phrase vulnerability, Cypherock is a recommended choice for securing digital assets.

Cypherock is a company that specializes in providing advanced security solutions for digital assets through their hardware wallet, the Cypherock X1 Vault. Unlike traditional hardware wallets that rely on a recovery phrase, Cypherock eliminates seed phrase vulnerability while still allowing for trustless self-custody. The wallet has been audited by Keylabs, a firm known for identifying vulnerabilities in other major hardware wallets, and has been found to be an innovative wallet that uses best practices in hardware and software security.

One of the unique features of Cypherock is its use of Shamir Secret Sharing to decentralize private keys. This cryptographic technique splits the private key into five parts, enhancing security by eliminating single points of failure. Users can also import up to four private keys, allowing the device to be shared between users or for multi-wallet private key management.

Cypherock X1 Vault is EAL6 certified, offering bank-grade security. It is also compatible with Wallet Connect, allowing users to easily access decentralized applications (DApps) and decentralized finance (DeFi) platforms. The device itself, along with the X1 card and pin, acts as an effective three-factor authentication (3FA) system for high-security use cases. Additionally, Cypherock is developing an inheritance feature that will enable the passing of crypto assets to loved ones.

Setting up Cypherock involves purchasing the device from the official Cypherock website and downloading the cySync software. The software guides users through the setup process, including creating a cySync password, authenticating the device, and setting up or importing a new wallet.

Cypherock can also be used as a seed phrase vault, allowing users to import and secure seed phrases from different software wallets. This eliminates the single point of failure risk associated with paper backup copies of software wallets. Additionally, Cypherock enables portfolio management for up to four different wallets, making it convenient for users to separate their funds for different purposes.

In case of loss or restoration, Cypherock provides several options. Users can restore their wallet by purchasing a new device or accessing the recovery phrase. The company is also developing a mobile app that will allow users to recover their funds using their mobile phone.

Overall, Cypherock offers a secure and versatile solution for crypto hodlers, combining the convenience of software wallets with the security benefits of hardware wallets. With its robust security features and innovative approach to seed phrase vulnerability, Cypherock is a recommended choice for securing digital assets.

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Our Take:

Cypherock X1 is a hardware wallet employing encrypted NFC-based cards to store users' private keys and seed phrases. It offers an industry-leading secure option for those looking to protect their assets and mitigate the risks associated with seedphrases. With portfolio management and the ability to act as a seedphrase vault for up to 4 wallets, the Cypherock is one of the most secure wallets we've reviewed!

Pros
Open Source
Audited by Leading Security Firms
Manage up to 4 Wallets
No Seedphrase Vulnerability Risk
Extractable Recovery Phrase
Shamir Backup Offers More Secure Backup and Recovery
EAL6 Security Certified with Bank-Grade Hardware Components
Cons
Plastic Build
Pricey
cySync Desktop App has Limited Functionality

Here at the Coin Bureau, we have reviewed several wallets that have chosen to move away from the traditional 12-24 mnemonic recovery phrase method, which is the method used by hardware wallet manufacturers Trezor, Ledger, ELLIPAL, MetaMask, Trust Wallet, and many others.

Some consider the movement to self-custody without the reliance on a recovery phrase to be an evolution in crypto storage and management as many of us are all too familiar with the risks associated with seedphrase vulnerability and have experienced the painful loss that follows the mismanagement of recovery phrases.

Cypherock is one of the wallets building a more secure future for crypto hodlers and is a true innovator in the space, breaking ground on how we secure our digital assets. This Cypherock Guide will teach you everything you need to know about how to set up Cypherock and use this cutting-edge crypto wallet.

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But first…

What is Cypherock?

Cypherock is a company specializing in providing advanced security solutions for digital assets through their hardware wallet, the Cypherock X1 Vault. This appropriately named hardware wallet is designed to be one of the safest hardware wallets on the market, eliminating the vulnerability associated with seed phrases. 

The unique approach of Cypherock towards crypto security involves a combination of hardware and software solutions, aiming to protect users against various risks in managing digital assets. Their product and approach indicate a deep understanding of the complexities and challenges in the field of cryptocurrency security.

Here is the “highlight reel” of what makes Cypherock a solid choice for anyone looking to secure their digital assets:

  • No Seed Phrase Vulnerability- Eliminates the common security risk associated with seed phrases, while still allowing for trustless self-custody.
  • Audited by Keylabs- Ensures robustness, having been tested by the firm known for identifying vulnerabilities in other major hardware wallets like Trezor and Ledger. Keylabs found Cypherock to be an “Innovative wallet that uses many hardware and software security best practices and even features several security firsts that we have not yet seen in other wallets”- (Source)
  • Decentralized Private Keys- Utilizes a Shamir Secret Sharing cryptographic technique to split the private key into five parts, enhancing security by decentralizing private keys.
  • Elimination of Single Points of Failure- By not relying on a single seed phrase or storage point, Cypherock effectively minimizes the risk of total loss. 
  • Multiple Wallet Management- Users can import up to 4 private keys, allowing this device to be shared between users or for multi-wallet private key management.
  • Bank-Grade Security- Each card is EAL6+ certified and the ATECC608A and STM32L4 components do not have any known hardware vulnerabilities
  • Wallet Connect Compatibility- Cypherock users can easily access DApps and DeFi with Wallet Connect
  • 3-Factor Authentication- The Cypherock X1 device, X1 card, and pin act as an effective 3FA for high security.
  • Inheritance Feature- Coming soon will be a legacy inheritance feature to enable the passing of crypto to loved ones.

We are big fans of the Cypherock wallet system as we find the ability to split your private keys and store them in separate places to mitigate against the threat of fire, flood, or unauthorized access to be of paramount peace of mind. Furthermore, the portfolio tracking feature and the ability to load up to 4 different wallets into a single Cypherock device make the lives of crypto users easier as most of us have multiple wallets, both hardware and software. 

Being able to secure your MetaMask recovery phrase with Cypherock and manage your software wallet assets through the X1 Vault provides a fantastic bridge, combining the strengths and convenience associated with software wallets, while also providing the security benefits of hardware wallets in one solution and interface.

We won’t get into all the details about the Cypherock team or dive deep into the features as we cover that in our in-depth Cypherock Review. This article is only meant to act as a guide, so without further ado, let’s crack on.

Setting up Cypherock

The first thing you are going to need to do is purchase a Cypherock if you haven’t already. 

Here is a golden rule of thumb when it comes to any hardware wallet manufacturer, be sure to only purchase from the official Cypherock website. This is to help ensure you aren’t purchasing a malicious device or a previously used one where someone still holds a copy of the private keys.

Once you have the device in hand, it’s time to set it up!

The Cypherock docs have made setup easy. Head over to the getting started page on the Cypherock site. 

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The cySync Download page from Cypherock. Image via Cypherock

From there, you are going to want to download the cySync software. cySync is available for Mac, Windows and Linux operating systems. It is a good idea to only download from the Cypherock site as software from other sources may be malicious. 

Cysync will then walk you through the steps to add wallets and get started. Here is what those steps look like.

Open the cySync app while plugging in the device

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Plugging in the Cypherock while Using the cySync App. Image via Cypherock YouTube Guide

Once plugged in, the first time you will be asked if you are using Cyphrock for the first time or if you’ve had one previously and are looking to migrate to a new Cypherock device.

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 For this guide, we will be starting as a new user. Read the terms of service and privacy policy, then you will be required to set a cySync password to be able to access the cySync app. Be sure to create a strong password and not something you’ll be likely to forget. However, if you do forget the password, no worries, you will be able to reset the Cypherock and recover your funds.

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 Next, you will be faced with the option to set an email as a 2FA and if you want the authenticity results sent to your email. This way, you do not need to completely rely on the cySync software as the email authentication confirmation comes directly from a Cypherock server, mitigating the risk that you may have accidentally downloaded a version of cySync that is not authentic or could be malicious.

Now your X1 Vault and X1 cards will be authenticated through the Cypherock Server.

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Once that is done and you get a big green checkmark, now is the fun part, playing with the joystick and tapping the cards.

You will be asked to move the joystick up, right, down, left, and click to ensure you are familiar with the joystick navigation. Sounds simple enough:

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 Once you’ve passed that dexterity test, time to get tapping:

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 Tap one card until you hear the beep and you will be taken to the screen where you long-tap each of the cards. That screen will appear as so:

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 Here you will do a long tap of all four cards, one by one in sequence until you hear 3 beep sounds for each card. The first and second beeps are for card authentication and the third beep signals that the card has been paired successfully with the device. 

Each circle will turn green as the beeps sound to show that the step has been completed:

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 After that step, authentication is complete and you are ready to set up or import a new wallet!

Creating a New Cypherock Wallet

With the Cypherock device plugged in for the first time, you will see the options to generate a new wallet or restore an existing wallet. For this guide, we will be setting up a new wallet.

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Now you will want to name the wallet. This is so you can identify the wallet, as you can create or import up to 4 wallets. Scroll on the device to choose the letters that will make up the name. 

Once you’ve named the wallet, you will be asked to set a pin. Important to note that this is a pin you will have to remember as you will not be able to recover it if you’ve forgotten it. 

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 Once you’ve set your pin you will now need to tap your cards to this device in sequential order from 1-4:

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 Now the wallet will be imported into the cySync app. 

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 You will see a popup with the words “Wallet Account (name of wallet) Added Successfully” 

You will also see a list of each imported wallet on the left-hand side.

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And that’s it! You can add up to 4 accounts on each Cypherock device, each identified by different names and pin codes.

Note that the images shown above were taken from the full video setup guide on Cypherock's YouTube Channel. 

Using Cypherock As a Seed Phrase Vault

We mentioned earlier that the Cypherock can be used as a seed phrase storage manager. Users can upload 4 different seedphrases into Cypherock, which is handy from a few different angles.

For starters, if you are anything like me, you probably have multiple different software wallets for interacting with different DeFi platforms and DApps on different networks. The problem with software wallets such as MetaMask is that their online connectivity leaves them more vulnerable to remote attacks than hardware wallets and leaving a recovery phrase lying around written on a fragile piece of paper also results in a significant single point of failure risk. 

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Image via amazon/cypherock

What is really unique and impressive about Cypherock is users can import and secure their software wallet recovery phrases, removing the single point of failure risks of having paper backup copies of all their different software wallets.

Another cool use case is that because each wallet can be protected with a pin, this enables the ability to share the Cypherock between friends and family members. 

Here are the steps involved:

Step 1: Wallet Creation

Connect the Cypherock X1 Vault to your computer and select the "Create Wallet" option on the X1 Vault.

Step 2: Seed Phrase Restoration

Navigate to the "Restore From Seedphrase" option by navigating right on the joystick.

Step 3: Wallet Naming

Assign a name to your wallet, which will also appear on CySync after syncing.

Step 4: Pin Setup

Set a secure PIN when prompted. Remember that you need to remember this pin so you can consider backing it up for extra security. Also keep in mind that even if the pin is exposed, an attacker would need access to two cards or a card plus device to access your funds so it isn't the end of the world if someone finds the pin backup.

Step 5: Seed Phrase Length

Choose the length of your seed phrase (12/18/24 words) depending on your wallet, and input it into the X1 Vault.

Step 6: Seed Phrase Input

Input your seed phrase into the X1 device, selecting words based on initial letters prompted by the device.

Step 7: Seed Phrase Verification

Verify your seed phrase on the X1 device to ensure accuracy.

Step 8: X1 Cards Sync

Tap all 4 X1 cards with your X1 device to complete the wallet setup.

Step 9: Seed Phrase Backup Destruction

After confirming the wallet's security with Cypherock X1, safely destroy your current paper seed phrase backup.

To view your seed phrase in the future, access the "View Seed" section in the wallet menu within the device.

Using Cypherock As An All-In-One Portfolio Manager

Cypherock provides the option of managing four portfolios for four different wallets all from one interface, making this an ideal wallet for Web3 builders who need to separate work from personal funds, or for anyone who simply wants to separate their long-term hodl portfolio from their DeFi degen funds. This is also an effective security bulwark to ensure you aren't exposing 100% of your funds to some of the riskier DApp plays.

Here are the steps: 

Create New Wallet:

Easily generate a new wallet within your X1 Vault without the hassle of creating and storing recovery phrases. The wallet is automatically backed up in five shards during the generation process as we cover in our Cypherock review.

Import Seed Phrases:

Effortlessly import seedphrases from existing BIP-39-based software and hardware wallets like Metamask, Ledger, Phantom, Trezor, etc. This enables you to manage funds from both your existing wallet and Cypherock X1 without the need to secure recovery phrases anymore. You can watch the Cypherock Video Tutorial on this step.

Portfolio Management with X1:

Manage multiple wallets seamlessly within Cypherock X1, displaying their portfolios together on the Cysync App. Each wallet is independent, serving as an individual portfolio. Select the desired wallet portfolio in the 'Wallets' tab to perform various operations such as tracking, receiving assets, and making transactions. Detailed operation logs are recorded separately for each wallet.

Cypherock portfolio tracking
Track Your Different Wallet's Balances and Performance. Image via Cypherock

Restoring Cypherock

If you need to restore your Cypherock wallet, there are a couple of ways to do so.

Lost X1 Device

If you lost the wallet itself but still have the cards, the easiest thing to do will be to purchase a new X1 device, though users will also be able to recover their funds to another wallet using the Cypherock mobile app (coming soon) and two cards. 

You will set up the new device as normal, creating a pin and password as we covered in the “Setting Up” section above. 

However, instead of “creating a new wallet”, you will select “restore wallet from cards” from the settings menu on the device.

Settings > Restore Wallets from Cards

Tap any one of your existing cards, enter in your original pin from your first device, tap any two of your existing cards and that is it, wallet restored.

Lost 2 X1 Cards

If you lose two cards but still have the device and one card, you can still access the device as you have the 2 of 5 threshold needed to access your funds (one card and one device, plus pin). However, at this stage, it is a good idea to either order more backup cards from Cypherock or access the recovery phrase and write it down to store someplace safe in case you lose the third and final card.

Users also have the option to restore a wallet the old-fashioned way by accessing the recovery phrase. As long as the user has the device and one card, they can navigate to settings and view their recovery phrase which can be entered into any standard BIP-39 wallet.

The final way will be via a mobile app that Cypherock will be releasing in the near future. The mobile phone will act as one of the 2 of 5 thresholds needed to view the recovery phrase, so as long as a user has one card, the mobile app, and their pin, they will be able to recover their funds. This is especially useful in the event the user loses access to their device or if Cypherock goes out of business.

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Closing Thoughts

Cypherock is not only among the most secure wallets we've used and reviewed but also the most versatile thanks to its seedphrase vault functionality and portfolio management. We especially appreciate the Shamir Secret Sharing backup method that reduces seedphrase vulnerability risk, ringing in a new paradigm to the hardware wallet landscape.  

We found the security framework is not only extensively robust but with the independent audits and removal of a single point of failure risk from multiple dimensions, which we cover in our Cypherock review, this is a wallet we don't hesitate to recommend.
 

Frequently Asked Questions

Is Cypherock a Safe Wallet?

Yes, we believe so. Thanks to their trustless security and backup/recovery approach, no single point of failure risk when it comes to communications or seedphrase vulnerabilities, plus their impressive independent security audit results, we feel Cypherock is among the most secure wallets on the market.

What happens is Cypherock goes out of business?

This is always a concern users should be aware of as it is a good idea to not be reliant on the success or failure of a company. Fortunately, if Cypherock goes under, users will still be able to recover their funds either by using the device itself to send funds or access the traditional recovery phrase method to restore into another wallet.

Is Cypherock Open Source?

Yes, Cypherock is open source. Their GitHub repository can be found here: https://github.com/Cypherock

 

Tayler McCracken

Providing financial education to those who need it most has always been a passion of mine. While working as a Financial Advisor, I had my eyes opened to the world of crypto and its potential to help make the world a better place. I believe that blockchain technology can build a brighter future and am excited to be part of it. If you appreciate the work that I do and enjoy my content, you can find the links to all my socials at pip.me/TaylerTBM

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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