Does a cryptocurrency wallet need a backup? How to backup?

Backing up your cryptocurrency wallet, using methods like writing down your seed phrase or storing a private key offline, is crucial to protect your digital assets from loss due to device failure, theft, or hacks.

Feb 28, 2025 at 12:07 pm

• Private Key : A private key is the only credential for accessing and controlling cryptocurrencies, like a home key, which is extremely important. If the private key is leaked, others can transfer your assets at will.

• Mnemonic words : Mnemonic words are a sequence of 12 to 24 words that are used to restore the wallet and facilitate memory. It is closely related to the private key and can generate the same wallet address.

• Mnemonic word backup : After creating a wallet, write the mnemonic word on paper and choose a waterproof and fire-resistant safe to store. Do not take pictures, screenshots or record them with electronic devices in case they are stolen by hackers.

• Private key backup : You can copy and save the private key to a secure USB drive, or write it on paper and put it in a safe. Note that the USB drive should be encrypted to avoid unauthorized access to the private key.

• Hardware wallet backup : Purchase a hardware wallet and import the private key according to the instructions. During backup, record the mnemonic words generated on the screen and store them in different locations to prevent them from being lost together. Some hardware wallets can export private key files, and must be operated in offline environments and saved properly.

• Cloud backup : Use reliable cloud service providers to back up, such as Google Drive, iCloud, etc. Choose a cloud service with high security and privacy protection and enable two-step verification. However, do not rely on cloud backup alone, because it poses security risks.

• Multiple backup : Combined with multiple backup methods, such as mnemonic backup, private key backup and cloud backup at the same time. Store backups in different locations or media, such as home, office, bank safe, etc., to improve security.

• Hot wallet (taking imToken as an example)

• Open the imToken app and click the settings icon in the upper right corner.

• In the Settings menu, select the Backup option.

• Follow the application instructions to record the displayed mnemonic words to ensure accuracy.

• If some users need to export their private keys, they can find relevant functions in their wallets and save the private key file to a secure location.

• After completing the backup, you can try to import mnemonics on the new device to verify that the backup is successful.

• Cold wallet (take Ledger Nano S as an example)

• Connect the Ledger Nano S device to the computer and open the relevant software.

• Find the backup option in the software and will generally prompt to generate mnemonic words.

• Record the mnemonic words on paper and keep them properly.

• Some hardware wallets can also set up multiple signatures to further enhance security.

• Software wallet (taking Electrum as an example)

• Open the Electrum wallet and enter the settings interface.

• Find the "Backup Wallet" option and click Execute.

• The wallet will generate mnemonics or provide a private key backup method, follow the prompts.

• Save the mnemonic or private key backup to a secure offline storage device.

• Safe storage backup : The backup media must be properly stored to avoid being obtained by others. Paper backup prevents damage and loss, and electronic backups are encrypted.

• Regularly update backups : After the wallet has new transactions, changes settings or software updates, update the backup in time to ensure the latest backup information.

• Avoid publicly publishing backup information : Never disclose backup information such as mnemonic words, private keys, etc. to others. Regular institutions will not ask for these contents.

• Verify backup integrity : After the backup is completed, verify that the backup is valid through the recovery operation to ensure that the wallet can be restored successfully if needed.