A cryptocurrency backup is one of the procedures that every user must perform in order to guarantee access to their account and funds in the event of an emergency. For that reason, here we explain how to do it quickly and easily.

Una of the things that most concern those who own cryptocurrencies is how to backup cryptocurrencies. The truth is that doing this does not have to be an odyssey or anything very complicated. Just follow certain recommendations and maintain good practices. All this will allow us to make sure that our funds are safe and that nothing bad will happen to them.

With the aim of helping you in these cases, we have decided to create a small guide aimed at explaining how to make a backup for your cryptocurrencies and thereby gain the peace of mind that you are looking for.

Main considerations to make a backup of cryptocurrencies

First: the security of your cryptocurrencies should depend only on you

The first step in backing up cryptocurrencies is to make security depend only on you. Remember that one of the reasons for the creation of cryptocurrencies is to regain control over money. To better understand this, think that if, for example, you want to make a transaction of 10.000 euros but your bank only allows you a maximum of 5.000 euros, Who really controls your money and what can you do with it, you or the bank?. The answer to this is quite obvious and the truth is that in Bitcoin these limits do not exist. In fact, there are no limits of any kind, you have complete freedom to do what you want with your money.

Well, that same freedom applies to the issue of security. Cryptocurrencies mean you don't need intermediaries to manage your money. Because of that, the security and management of your funds rests solely with you. In that regard, keep in mind using well-known cryptocurrency wallets, such as Exodus, Jaxx, Coinomi o Bitpay. Also remember that it is important to keep them updated to avoid software bugs affecting you and only rely on updates coming from official sites. Always keep in mind the maxim that tells us: Don't trust, check.

Additionally do not trust third party services that are offered as a secure store of your keys. In fact, Do not put your private keys or the seed of your wallet on the Internet. Doing so could lead to a serious security problem that you can pay for with the loss of your cryptocurrencies.

Considering this first point, the security of your cryptocurrencies will always be in your hands, the place where you should always be.

Second: Securely store your wallet seed or private key.

The seed of a cryptocurrency purse es the most sensitive element of information that it may have. This series of 12 to 24 words will allow you to quickly and securely back up all the information in your wallet. Hence the importance of writing it and storing it in places that only you know and that are safe. In case your wallet doesn't generate a seed key, take the private key in place and safeguard it.

There are several ways to securely safeguard a private key or seed words. From using encrypted digital media stored in memory, sending that information to heavily encrypted and obfuscated personal mail in another file, storing the information in an encrypted QR image, or making regular copies of your wallet entirely. These are all effective means of backup, but the simplest of them will only ask you for a pencil and paper to do it successfully and therefore we will explain it below.

The best way to accomplish this is as follows:

  1. Copy your seed or private key in full on a small piece of paper. If you can use a metal element to engrave the words much better. In more extreme cases of security, you can encrypt this content and copy the result of the encryption.
  2. Verify that the information is correct. Always remember the maxim: Don't trust, check.
  3. Protect the paper or engraving element from external factors that may damage it. For example, the paper can be laminated to prevent moisture or other factors from damaging it. In the case of metal, a chemical bath can protect it from corrosion. In extreme cases, you can use resins or bakelite to protect it.
  4. If you wish, you can create at least two more copies and save them. With this, in case you lose one, you will have access to two backup options.
  5. Finally store copies in safe places.

Third: keep your software updated at all times

This point is important because updating your wallet software can lead to improvements for sensitive data in your wallet. If for example, there was a hard fork And there is a modification in the way the addresses are handled within the blockchain, updating and rewriting it may be the only way to maintain access to your cryptocurrencies. Furthermore, software updates will allow you to keep your wallet secure at all times.

Fourth: avoid using hot wallets

The hot wallets or hot pursesThey are cryptocurrency wallets that are always connected to the Internet. Using this type of purse is a very bad idea and the reason is very simple: they are very susceptible to being hacked. That is why, if you want to store some cryptocurrencies safely, avoid using this type of purse. An example of them are Coinbase o Blockchain.com. The wallets of the exchanges also enter as Binance.

Instead use a purse cold wallet. These cold wallets guarantee that your private key and data associated with your account are safe and stored only on your device. Purses like Coinomi, Exodus, Jaxx, Bitpay, Wasabi or Samourai are very safe purses with cold storage capacity. Another option to safely store cryptocurrencies is to use a hardware wallets. Manufacturers like Legder y Safe deposit they have hardware wallets widely tested by the community and are very secure.

How much do you know, cryptonuta?

Is it true that our cryptocurrency funds will be completely lost if we don't have a backup of our seed or private key?

TRUE!

One of the biggest advancements in cryptocurrency and blockchain technology is its security. This is true up to a level, that in case of losing access to your account and not having a backup of your seed or private key, you will completely lose your funds. There is no way to recover them, it is practically impossible to do so. Hence the importance of making cryptocurrency backups at all times.

Other security considerations for backing up cryptocurrencies

Other considerations that are good to keep in mind with this process are the following:

  1. If you plan to use encryption to safeguard your seed or private key information, be sure to use a strong algorithm. With encryption, you can use a digital medium to store your wallet information in complete security. After all, the only way to access such data is to know the password that you and only you know. One of the most secure encryption algorithms at this point is AES-256, classified as a military-level algorithm. But additionally, you can also use Blowfish o Serpent, They will also guarantee a high level of security.
  2. If you use encryption remember to use a hashing algorithm on your seed words or digital files under backup. Doing this will allow you to check the integrity of the data at all times and to know if the encryption or storage process has corrupted the data in any way. One of the most used algorithms for this is SHA-256, the same one you use Bitcoin for your mining. It is easy to use, very fast and allows a high level of security for these tasks.