To safeguard your crypto from loss, you need to back up your codes. Here's a guide on the best practices.
Choose the Right Time
Your wallets should be backed up regularly, but it depends on what type of wallet you have.
Back-up frequency is based on whether your wallet uses a seed phrase or not. Seed-based wallets should be backed up the first time the wallet's seed is created.
Seedless wallets need to be backed up every time a new private key is created. This could be pretty frequently, maybe even for every transaction you make.
If you don't want to deal with that, you can perform fewer backups.
But keep in mind there is a risk of losing your most recent keys and funds if something happens to your wallet between backups.
Choose the Device
The easiest and most common way to store your secret codes is on plain paper. This is the best method for seed wallets.
Hide the paper where it won't be lost, or destroyed by fire, floods, animals, etc. A sturdy home safe or safe deposit box should work.
You can back up your secret codes electronically - with a file on your computer, USB drive, external drive, the cloud, etc.
If you go the electronic route, keeping it offline is the best option. Consider a USB or external drive; you only need to plug it in when you're backing it up.
Seed phrases can be safely backed up on the cloud. It's best to look for a provider that values security and privacy.
Large cloud providers like Google Drive or Dropbox are prone to breaches and have easier access to your data.
Whatever electronic option you choose, do not store your codes unencrypted. An encrypted backup file requires a password to open it. Most wallet providers have this option built in.
Have a Backup Plan
Nothing lasts forever. Computers, USBs, and external drives can all get degraded or corrupted.
It's a good idea to back up more than one electronic device at a time.
If you're throwing away old equipment or getting a new phone, make sure you have your secret codes written down and stored somewhere safe.
Use high-quality ink, and paper, and consider laminating the codes so they don't degrade over time.
Wrapping Up
Choose the right time to back up your wallet, whether you're using a seedless wallet or seeded.
Choose the right device to store your codes on paper or electronic. Just make sure you store it somewhere safe.
Have a fail-safe plan in place if you dispose of old equipment, get a new computer, or have to move suddenly.
Keep in mind that deleting a file on a hard drive doesn't completely delete it. A complete wipe is the best option.
Tools like Disk Wipe can digitally shred your files. It has shredding algorithms that are comparable to the Department of Defense!
When protecting your cryptocurrency, stay vigilant! Try FLOW to support focus and concentration throughout your day.
