Riddle #9
Paul has used a software wallet for his crypto for almost two years. Although he has never had any issues with it, he has learned that using a hardware wallet is much safer. So he took advantage of a Black Friday deal and purchased a brand-new hardware wallet with a discount.
Once the product was shipped to him, he started the setup process for his new hardware device. When the installation wizard asked him whether he wants to create a new wallet or restore an existing one from seed, he chose to restore from seed.
He entered the seed of his multi-coin software wallet, which he has kept written down on a piece of paper in his new hardware device. Within a few minutes, all his portfolio and crypto balance became visible to him on screen.
Paul is happy to have increased the security of his assets and that they are now safe thanks to his new hardware wallet.
But are they really?
Did Paul make any mistakes in the setup process, and is there something he should have done differently?
Help Paul to figure out the correct steps.
Paul bought the hardware wallet with the intention of better security, but the power of the hardware wallet isn't utilized because his portfolio is still connected to the software wallet which means if he loses his seed phrase, access to his coins is also lost.
The best he should have done imo is create a totally new wallet on the hardware wallet and sent the coins from software wallet to this wallet without forgetting to backup the hardware wallet.