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How to Backup and Restore a Crypto Wallet?

How to Backup and Restore a Crypto Wallet?

Table of Contents

A crypto wallet is a tool for storing and managing cryptocurrencies. It can be a digital app or a physical hardware device. It is used to store keys and authorize cryptocurrency transactions on the blockchain.

Users can easily access and control their digital assets with a crypto wallet. Wallets come in different types, and depending on the type, they offer different features and security measures for your crypto coins.

If you want to keep your crypto coins safe, always back up your crypto wallet. Then, you will be able to regain access to it if the device is lost, stolen, or if it fails. It is impossible to restore funds if the wallet is not backed up because there is no central authority that can help you. 

Table of contents

  1. Why do you need a wallet backup?
  2. Preparing to Backup Crypto Wallet
  3. Types of Cryptocurrency Wallet Backup
  4. How to Create a Backup Copy of Your Wallet
  5. Where to Store a Backup Copy of Cryptocurrency
  6. Wallet Recovery on Different Devices
  7. Main Wallet Backup Errors and How to Avoid Them
  8. Tips for Safe Backup of Your Crypto Wallet

Why do you need a wallet backup? 

Here are the main reasons why you need to back up your wallet:

  • Devices may fail, and a backup keeps your funds safe if your device breaks down. 
  • If your device is lost, you can restore your wallet and access your funds if you have a backup. 
  • You may forget a password or lose your keys. If you have a backup, you can restore this data and access to your coins. 
  • In case your device is stolen or hacked, a backup lets you recover your funds.

It takes some time to back up your wallet, but it is worth your effort because it is needed to protect your cryptocurrency. 

Here are the main methods to backup a crypto wallet.

Digital Backing up

A digital backup means that you save your wallet information on external digital storage or secure online platforms. 

  • External devices (hard drives, USB drives): You can back up your wallet on an external hard drive or USB stick. This will allow you to maintain the crypto wallet security. However, these devices can be damaged or corrupted over time, and to minimize risks, store them in safe, dry, and protected locations.
  • Backing up in a cloud: Another option for backing up your wallet is to store it on Cloud services like Google Drive or Dropbox. If you want to enhance security, always encrypt your wallet data before uploading it to the cloud.

Physical backing up

A physical backing up of your wallet means that you store keys offline.

  • Printed access data: Print your private keys and recovery phrases on paper, this will allow you to get a physical copy for emergencies. Use high-quality, water-resistant, and tear-resistant paper, it will help to preserve it for longer. 
  • Storage devices: Store your private keys and recovery phrases on steel or titanium plates. These materials are resistant to fire, water, and physical damage, making them ideal for long-term protection. 

Preparing to Backup Crypto Wallet

Here are the simple steps you shall follow if you want to back up your wallet:

  1. Update the wallet software if needed. 
  2. Prepare the tools needed for backing up the wallet: a piece of paper, a device, or software. Read about how to store cryptocurrency backup data, it depends on which backup you have chosen. 
  3. Proceed with backing up the wallet for added crypto wallet data protection.

Types of Cryptocurrency Wallet Backup

Backing up your cryptocurrency wallet is very important if you want to keep your funds safe. Here’s how you can create backups for different types of wallets.

Web Wallet Backup

Web wallets like Metamask, Blockchain.com, or Trust Wallet provide easy wallet file backup options. 

First, log into your wallet, and use a secure browser for it. Navigate to the settings or security section, there, you will see an option to back up or export your wallet. 

Save the private key and recovery phrase provided by the wallet. Write down the private keys of cryptocurrencies on paper, do not store them on a device that is connected to the web or in a cloud. 

Mobile Wallet Backup

Mobile wallets are convenient but prone to risks like device loss or failure, this is why it is important to back them up. Follow these steps to back up your mobile wallet.

Open your wallet app and go to the security settings. 

Write down the 12- or 24-word recovery phrase on paper, then, store it in a safe place. Some apps offer cloud backups to services like iCloud or Google Drive. If you use this option, make sure that your file is encrypted and protected with a strong password. 

Always test your backup. To do so, restore it on another device and check if it works. 

Cloud Backup

Cloud backups can be good as a secondary option. To back up to the cloud, enable the cloud backup option in your wallet settings. Encrypt the backup file with a strong password and enable two-factor authentication (2FA). 

Do not store the recovery phrase in a cloud, keep it in a safe place offline. 

Hardware Wallet Backup

Hardware wallets like Ledger or Trezor are among the safest ways to store cryptocurrencies because they keep private keys offline. When you set up your wallet, it will generate a 24-word seed phrase that can be used to recover the wallet.  

Write this phrase down on a piece of paper or on a plate made from some durable metal, such as steel. Store the seed phrase in a safe place, you can even opt for a bank deposit box if you store a significant amount of money in your wallet. 

How to Create a Backup Copy of Your Wallet

You can use a seed phrase to create a backup copy of your wallet. Write this seed phrase on a piece of paper, and store it somewhere in a safe place. We do not recommend to store the seed phrase digitally because it can be hacked, and your money can be stolen. 

If you want to make sure your wallet is safe, use a fireproof and waterproof device. It will protect your seed phrase from damage. 

Create several copies of your seed phrase and keep them in different locations. If you lose access to one, you can use another location to recover your money.

 

Never share your seed phrase with anyone, even friends or family members.

Never share your seed phrase. Do not share it with friends, family, customer support agents, or third-party services. Treat it as your most sensitive information. If someone gets your seed phrase, they can take all your funds.

Private Keys and Their Backup

Your wallet also generates private keys which are needed to sign transactions. Without private keys, you cannot access your crypto coins. This is why you shall take proper care of them. 

If you lose private keys, you lose your coins forever. This is why it is needed to back up the private keys. 

To do it, export the private keys from your wallet, write them down, and store in a safe place. If you use a hardware wallet, you can also store your private keys there. 

Avoid storing your private keys on any device that connects to the internet because hackers may steal them. Even if you decide to store your private keys in a cloud, encrypt them.

Where to Store a Backup Copy of Cryptocurrency

If you have your seed phrase written down or saved in a device, keep that piece of paper or device in a safe place. It is better to use a fireproof safe or you may even opt for a safety deposit box in a bank. With it, you will protect your seed phrase from destruction and theft. 

If you want to add an additional security layer, purchase a special device for storing the seed phrase, for example, a waterproof wallet. These devices are very durable and can serve perfectly for many years. 

Establish a schedule for checking your backups and follow it. If a copy gets damaged or is stolen, move your coins to another wallet as soon as possible. 

Never forget that your seed phrase gives access to your cryptocurrency. Never share your seed phrase with anyone, because it can lead to the loss of all your funds. 

We do not recommend storing your seed phrase on a computer, a phone, or online on a digital cloud. They all connect to the internet and can be hacked. Never ignore such security measures as a strong password and 2FA. 

Wallet Recovery on Different Devices

If you need to regain access to your coins, you need to recover access to your wallet. This can be done by using a seed phrase. 

Here, we will check how to recover your wallet with a seed phrase on the example of Trust Wallet. Here is how you do it:

  • Download the wallet on your device.
  • Pick the option Add existing wallet. You will be displayed a field where you can type in the seed phrase. 
  • Type in the seed phrase, word by word, and your wallet will be restored. 

If you store your seed phrase in a Google Drive, click on the option Google Drive Backup. You will be prompted to log into your account, and the wallet will guide you through the recovery process.

Main Wallet Backup Errors and How to Avoid Them

If you want to keep your funds safe, back up your cryptocurrency wallet. However, people make mistakes, and even the smallest mistake can put the safety of your funds at risk of loss. Here are the most common mistakes users make, and some tips on how to avoid them. 

Insufficient Backup Protection

One of the biggest mistakes is not storing backups securely. Many people leave their wallet backups on easily accessible devices like computers, phones, or cloud services. This makes them vulnerable to theft, hacking, or accidental loss. 

To avoid these risks, keep physical backups, such as recovery phrases or private keys, in safety deposit boxes or places protected from fire and humidity. 

For digital backups, always use encrypted storage and enable 2FA. Tamper-proof tools, like metal plates, can also protect physical backups from damage.

Not Updating Backups

Another common mistake is not updating your backups. Some updates of wallets can make old backups incomplete and they stop being valid. This is why in such a case, you may lose access to your crypto coins.

This is why it is very important to update all backups regularly, especially if a wallet team introduces any significant changes. Also, test backups from time to time to make sure they work. 

Sharing Backup Information

One more mistake that users make is sharing information about their wallet backups. Like this, they can become victims of phishing scams or lose their seed phrase. 

If you suspect your backup has been compromised, transfer your funds to a new wallet and create a new backup.

Incorrect Private Key Entry

If you opt for physical storage, make sure you provide the seed phrase correctly. Incorrect private key entry leads to the seed phrase loss and losing access to your wallet.

Tips for Safe Backup of Your Crypto Wallet

Backing up your wallet is essential for the safety of your digital assets. Following the right steps ensures that you can recover your funds if something goes wrong. 

Perform the Backup Yourself

You are solely responsible for your cryptocurrencies' security. To maintain this independence:

  • Use trusted crypto wallets like Exodus or similar well-known options.
  • Keep your wallet software updated to avoid bugs and security issues.
  • Only download updates from official sources. Remember: “Don’t trust—verify.”

Avoid third-party services that claim to securely store your private keys. 

Update Regularly for Crypto Wallet Backup Security

Always keep your wallet software updated. Updates improve security and ensure compatibility with blockchain changes, such as forks or address updates. 

Use Multiple Backup Methods

Use a mix of digital and physical backups, this will create redundancy. For example, combine encrypted digital storage with a physical backup like a paper or steel copy. 

Encrypt Backup Files

If you store your backup on a computer or device, use encryption to protect your data. Set strong, unique passwords, this will reduce the risk of unauthorized access or hacking.

Test and Update Backups

Update crypto wallet backups regularly and include any new information. Test the backups. With it, you make sure that they stay relevant and data is accessible.