What Exactly Are You Backing Up?

When you "back up" a crypto wallet, you're not backing up the wallet app or the device — you're backing up the seed phrase. This 12 or 24 word phrase is all you need to restore complete access to all your funds on any compatible wallet, on any device, at any time.

The wallet app can be deleted, the device can be destroyed — as long as you have the seed phrase, your crypto is recoverable.

Paper Backup: The Foundation

The minimum viable backup is writing your seed phrase on paper:

  1. Write it down immediately when the wallet displays it during setup
  2. Write in clear block capitals with a permanent marker or ballpoint pen
  3. Double-check every word and its order
  4. Store in a sealed envelope in a secure, dry location

Ink fades. Paper deteriorates. Laminate your backup or store it inside a sealed plastic bag. Test that you can read it clearly.

Metal Backup: For Serious Holdings

Paper is vulnerable to fire, water, and physical degradation. For substantial holdings, consider:

  • Cryptosteel Capsule — Stainless steel cylinder with stamped letter tiles. Waterproof, fireproof to 1200°C.
  • Bilodal CryptoTag — Titanium seed phrase backup.
  • DIY option — Stamp or engrave words on a stainless steel plate using letter stamps from a hardware store.

Multiple Backup Locations

Having one backup in one location creates a single point of failure. Consider:

  • Home safe (fireproof)
  • Trusted family member's home
  • Bank safety deposit box
  • Separate geographic location from where you live

The 3-2-1 rule adapted: 3 copies, on 2 different media types, in 1 offsite location. Treat your seed phrase like bearer bonds — physical possession equals ownership.

How to Recover Your Wallet

If your device is lost, broken, or stolen:

  1. Get any compatible wallet app (same wallet or another HD wallet like Trust Wallet, MetaMask, Ledger Live)
  2. Choose "Import wallet" or "Restore from seed phrase"
  3. Enter your 12 or 24 words in the exact correct order
  4. Your wallet, all addresses, and all balances will be fully restored

You can import the same seed phrase into multiple wallet apps simultaneously — they'll all show the same balances and addresses.

Test Your Backup Before You Need It

The worst time to discover your backup doesn't work is during an emergency. Test recovery:

  1. Create a new test wallet with a small amount of crypto
  2. Write down the seed phrase
  3. Delete or uninstall the wallet app
  4. Recover using the seed phrase
  5. Confirm the balance appears correctly

Do this periodically for your main wallets as well (moving funds out first if needed).

Inheritance Planning

Crypto has a unique inheritance challenge — no institution holds your keys, so your heirs can't claim funds without knowing your seed phrase. Strategies include:

  • Sealed instructions with your will
  • Shamir's Secret Sharing — split seed phrase across trusted individuals
  • Multi-sig wallets requiring M of N signatures
  • Services like Casa or Unchained that specialize in crypto inheritance