How to Backup Crypto Wallet

We should always have a plan B to resist the most unexpected situations in life. Whether it's making software or a crypto wallet backup, the one forewarned is forearmed. You may use the safest crypto wallet software to store your digital assets. However, we recommend backing up your crypto wallet to ensure none of your funds are lost. How to back up a crypto wallet? Follow our step-by-step guide. 

Why you need a crypto wallet backup

Equipping yourself with a crypto wallet backup can be compared with buying insurance that keeps you safeguarded from any unexpected situation. Creating a crypto wallet backup is not a precaution. It's a necessity for everyone who owns digital assets. With a crypto backup, you may rest assured you can recover your digital funds in case of device loss, theft or technical issues. Setting up a crypto wallet backup is vital for investors holding substantial savings in their digital wallets. A proper backup gives you peace of mind and relief. 

The best strategies for securing your crypto wallet include, but are not limited to, regular private key updates, two-factor authentication setup, strong encryption, and other security measures that will keep you further protected against all possible thefts and security breaches. 

How to back up a crypto wallet 

There are a few handy tips for you to consider before we proceed with instructions on how to back up a crypto wallet: 

• Back up your seed phrase and private key to ensure you can restore your entire wallet.
• To reduce the risk of losing backups, always create multiple backups stored in different locations. 
• Regularly update your crypto wallet backups, especially after significant transactions. 
• Keep your storage safe with encryption. 

How to do a manual crypto wallet backup

To manually back up a crypto wallet, you ensure you have a copy of the private keys or recovery phrases associated with your wallet. Here's a step-by-step guide on how to do a manual backup for most wallets:

Step 1. Find your wallet's backup option

• Open your cryptocurrency wallet.
• Navigate to the Settings or Security section.
• Look for an option labelled Backup, Export Keys, or Recovery Phrase.

Step 2. Record the recovery phrase or private key

• Most wallets provide a recovery phrase (12 or 24 words) or allow you to export a private key.
• Write down the recovery phrase or private key on physical paper. Do not store it digitally (e.g., in a text file or online storage), as this increases the risk of hacking.
• Double-check the phrase or key for accuracy.

Step 3. Store the backup securely

• Keep the paper copy in a safe and secure location. Consider a fireproof safe or another physically secure place.
• You may want to create multiple copies and store them in different locations (e.g., one at home, one in a bank safety deposit box).

Step 4. Test the backup (optional but recommended)

• To ensure the backup works, you can try restoring the wallet on another device using the recovery phrase or private key.
• Follow the wallet's instructions to import or restore the backup and verify that your crypto is accessible.

How to set up automated crypto wallet backups 

Setting up automated crypto wallet backups helps you safeguard your wallet's recovery data without manually managing it every time. Not all wallets offer this feature, so you need to check if your wallet supports automated backups. Below is a general guide on how to set up automated crypto wallet backups.

Step 1. Choose a wallet with automated backup support

• Not all wallets support automated backups. Wallets like Exodus, Coinbase Wallet, or Mycelium may offer automated cloud backup options.
• Ensure the wallet you use has the feature and supports the cryptocurrencies you hold.

Step 2. Enable cloud backup (If available)

• Open the wallet app and go to the Settings or Security section.
• Look for a Cloud Backup or Automatic Backup option.
• This feature will often back up your wallet's recovery phrase to secure services like Google Drive or iCloud.

Step 3. Encrypt the backup

• Most wallets that support automated backups will offer encryption for your recovery phrase or private keys.
• Choose a strong password when encrypting the backup. Make sure you do not lose this password, as you will need it to restore the backup.
• Some wallets will prompt you to create or enter a password before storing the backup in the cloud.

Step 4. Verify backup status

• After enabling the automated backup, verify that it is working correctly. Check that the wallet confirms the backup has been securely stored.
• Wallet apps often notify you if the backup needs updating or if there is an issue with the cloud service.

Step 5. Sync across devices (if supported)

• Some wallets with cloud backup features also allow you to sync your wallet across multiple devices.
• Ensure that syncing is enabled so you can restore your wallet easily on a new device.

Step 6. Check backup updates

• If your wallet generates new addresses or keys frequently (e.g., after transactions), ensure that the automated backup updates accordingly.
• Some wallets automatically keep backups up to date, while others may require occasional manual confirmation that the latest data is saved.

Step 7. Test backup

• After setting up the automated backup, it's a good idea to test the recovery process. Try restoring your wallet on another device using the automated backup to ensure everything works as expected.

Seed phrase backups

A seed phrase (also called a mnemonic phrase) is a series of 12 to 24 words that act as a master key to your cryptocurrency wallet. Storing this phrase securely and accurately is critical for maintaining access to your assets. Backing up your seed phrase is essential for securing your cryptocurrency.

Take the following steps to generate and store seed phrases: 

1. Follow the instructions provided by your wallet software to generate a seed phrase.
2. Write the seed phrase on physical material like paper or metal. Avoid storing it digitally to reduce the risk of hacking.
3. Consider using durable storage options like Cryptosteel, which can withstand extreme conditions (up to 1400°C).
4. Use tools like Vault12 to divide your seed phrase into encrypted shards and store them in multiple secure locations for added protection.
5. Periodically check that your physical backup (paper, metal, or otherwise) is still intact and readable.

Private keys backup

A private key is a cryptographic code that provides access to your cryptocurrency. If lost, your assets are permanently inaccessible. Private keys are essential in verifying ownership of your digital assets in cryptocurrency. Backing up private keys ensures the security and accessibility of your cryptocurrencies, protecting them from accidental loss or theft.

Mind the following secure methods for storing private keys: 

1. Store private keys offline using hardware wallets like Ledger Nano X or Trezor One, which offer high-level security by keeping keys disconnected from the internet.
2. Write down the private key on physical paper, creating a paper wallet that is completely independent of the internet and thus safe from online threats.
3. Split the private key across multiple encrypted hard drives or storage devices to add an extra layer of security. Store these devices in different physical locations.
4. For long-term durability, consider using stainless steel storage to protect the private key from physical damage such as fire, water, or corrosion.
5. If using cloud storage, ensure the backup files are encrypted to protect them from unauthorised access while keeping them accessible.
6. To reduce the risk of losing access completely, distribute backups across multiple locations. This applies to both digital and physical backup methods.

How to restore a crypto wallet

Restoring a crypto wallet is a simple process that allows you to regain access to your funds using a recovery phrase or private key. Here's how to restore a crypto wallet:

Step 1. Install the wallet app

• Download and install the same wallet app you originally used or any wallet app that supports your cryptocurrency and recovery method (e.g., MetaMask, Trust Wallet, etc.).
• Make sure the app is from an official source to avoid phishing attacks.

Step 2. Choose the restore option

• Open the wallet app and look for the "Restore", "Import Wallet", or "Recover Wallet" option.
• This is usually available on the initial setup screen when creating a new wallet.

Step 3. Enter your recovery phrase or private key

• If you are restoring with a recovery phrase, select this option and enter the 12- or 24-word phrase exactly as it was originally written down.
• If using a private key, copy and paste (or manually enter) the key when prompted.
• Ensure there are no errors in the phrase or key, as even a small mistake can prevent the wallet from being restored.

Step 4. Set a new password (if applicable)

• Some wallets may prompt you to set a new password or PIN for additional security.
• This password is only for accessing the app and does not replace your recovery phrase.

Step 5. Wait for the wallet to sync

• Once the phrase or key is confirmed, the wallet will typically sync with the blockchain.
• Depending on the wallet type and network congestion, this might take some time.
• After syncing, your balance and transaction history will appear, reflecting the funds in your wallet.

Step 6. Verify your funds

• After the restoration process is complete, double-check that all your cryptocurrencies and tokens are visible and accessible in the wallet.
• If any tokens are missing, you may need to manually add them using the token's contract address (for wallets like MetaMask).