However, exporting your private keys to an alternative location does mean that they have been backed up and are accessible to you in the case of an emergency. Just make sure that you’re exporting them to an important device or virtual location and that they are protected after being exported. A seed phrase cannot be changed like your social media or email passwords can be. It is designed to be kept incredibly safe as an unchanging default backup password for your crypto accounts.
Once your wallet is funded, you can then use it to make transactions such as sending or receiving cryptocurrency or paying for goods and services. Katie has been writing about tech-based topics for two years, with a specific interest in cybersecurity, AI, and cryptocurrency. Katie has covered a variety of topics during her time at MUO, including crypto explainers, cybersecurity guides, VPN reviews, recent hacks, and software tutorials. With a passion for emerging tech, Katie is also excited to see what new devices and digital platforms the coming years will bring. You can also store this QR code on a device, but be aware that this makes it more susceptible to malware and theft.
Offline transaction signing
On the other hand, cold wallets are stored offline and do not require internet connection, making them more secure and ideal for holding larger sums of money. Hot wallets are commonly used for daily transactions while cold wallets are better for long-term storage. Although many people prefer hot wallets for the speed and ease of use, when it comes to keeping your coins safe, it’s hard to beat a cold wallet.
- However, regardless of what kind of cold wallet you choose to use, the most important thing is to keep it safe.
- Any password that contains only letters or recognizable words can be considered very weak and easy to break.
- There are various types of wallets available in the market, such as software wallets, hardware wallets, and paper wallets.
- In addition to its compatibility with Ethereum, MetaMask also offers compatibility with other blockchain solutions.
The third common method of backing up your software wallet is to simply backup the wallet files themselves. While it’s easy to think that our crypto wallets are designed to be secure, they’re never entirely safe, and so they need to be protected as much as possible. A backup is a great option to ensure you’ll always have access to your crypto funds, come rain or shine. So, give one or more of these methods a go to rest easy, knowing that your funds aren’t going to disappear on you.
It is essential to disconnect your device from the internet before exporting to ensure the safety of your keys. After the export is complete, you can choose to save the file in either CSV or JSON format and specify the storage location. An established method of safeguarding a cryptocurrency wallet is through the creation of a seed phrase. It’s not a very difficult process, in any case, so give it a go if you know you have a secure location prepared for your keys. It’s always a good idea to export your private keys to an external location.
Additional Cryptocurrency Wallet Key Backup Methods
Public keys are equivalent to account numbers on a blockchain network, while private keys are the passcodes that give access to those accounts. If you want to back up your keys physically like this, ensure that you have a super-secure location, such as a safe, or hidden container, that no one else knows about. This way, you can safely back up your keys without having to worry about them disappearing.
When you back up your crypto wallet file, the private keys will be backed up along with it, which makes it a viable virtual backup option. From security to fee customization options, these are the key factors to consider when choosing a crypto wallet for your cryptocurrencies and digital assets. However, regardless of what kind of cold wallet you choose to use, the most important thing is to keep it safe. If it’s your backup wallet and you lose it, you won’t have any other way to recover your private keys and access your bitcoin.
- When you back up your crypto wallet file, the private keys will be backed up along with it, which makes it a viable virtual backup option.
- No software can be installed on them, making them very secure against computer vulnerabilities and online thieves.
- The public address is used to receive cryptocurrency, while the private key is used to send cryptocurrency and should be kept secure.
This is because cold wallets store your private keys completely offline instead of on your hard drive, where it could be stolen, deleted or otherwise lost. For that, you can use encryption software and move it to a cloud storage service. For the less tech-savvy users, though, writing the backup phrase down also works. However, like with all paper wallets, you’ll need to keep it safe from both damage and thieves — for example, by putting it in a safe deposit box.
Furthermore, MetaMask fully supports popular Web3 networks such as Polygon, Binance Smart Chain, and Avalanche. MetaMask, with its user-friendly interface, is considered to be the top choice for Ethereum wallets. The Ledger Nano S and Trezor are among the most widely recognized hardware wallets in the market. Understand how the self-custodial model puts you in charge of your cryptoassets and protects you from third-party risk.
However, for common cryptocurrencies like bitcoin, most people use hardware wallets. To start using a crypto wallet, you must first select a wallet that is compatible with the type of cryptocurrency you wish to hold. There are various types of wallets available in the market, such as software wallets, hardware wallets, and paper wallets. Each of these options has its own set of pros and cons, and it’s essential to choose the one that best suits your needs and preferences. There are different forms of crypto wallets that can be grouped according to their method of storage and location.
Coinbase Wallet
Your wallet holds two important pieces of information — your address and your private key — and you need both to access your bitcoin. This is a bit like a username and password, except both are long strings of random characters, so simply remembering them isn’t realistic. Instead, if you want to backup your bitcoin wallet, you’ll need to use a different method. It’s also worth noting that we do not recommend storing your private keys, seed phrases on a password storage software program, as these can be infiltrated by cybercriminals. Like any other software, they are vulnerable to malfunctions or server crashes.
Some popular options for hardware wallets are the Ledger Nano X and the Trezor One. Technically speaking, your cryptocurrency is already as safe as the blockchain it’s on, as that’s where all of your coins are actually stored. However, your wallet is your only way to access these coins, and because money you can’t use is worthless, you need to make sure you don’t accidentally lose this access. Your bitcoins can be lost forever if you don’t have a backup plan for your peers and family. If the location of your wallets or your passwords are not known by anyone when you are gone, there is no hope that your funds will ever be recovered. If you only have a backup of the private keys for your visible Bitcoin addresses, you might not be able to recover a great part of your funds with your backup.
Be careful with online services
So make sure you keep this phrase super safe once it is given to you. It’s also a good idea to split your seed phrase into two or more parts so that it can never be stolen in its entirety. Bitcoin includes a multi-signature feature that allows a transaction to require multiple independent approvals to be spent. This can be used by an organization to give its members access to its treasury while only allowing a withdrawal if 3 of 5 members sign the transaction. This wallet provides easy access to a wide range of tokens and decentralized apps within the Ethereum network.
The most secure passwords are those generated by programs designed specifically for that purpose. Strong passwords are usually harder to remember, so you should take care in memorizing it. In conclusion, securing your cryptocurrency assets is crucial, and the responsibility lies solely on you.
Use many secure locations
The downside of decentralized ledgers is that if you misplace your password, there is no way to retrieve it. Learn what makes decentralized finance (DeFi) apps work and how they compare to traditional financial products.
How to backup and restore a crypto wallet
You can tell a trusted person your private key(s), which ensures they’re never written down, virtually or physically, in the backup process. However, you then run the risk of your trusted person losing the private key(s) to memory. This is probably the most simple of all backup methods, as you don’t need any technical knowledge to do it. Physical backup involves using a device or object that is not virtual, such as a piece of paper or flash drive, to back up your private keys.
To mitigate this risk, it’s essential to regularly back up your wallet. While they may not be vulnerable to cyber attacks, they do have some limitations such as the inability to send partial funds and being difficult to reuse. They were once a prevalent choice for offline storage, but have now been replaced by more advanced hardware wallets.
