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:
- 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.
- Verify that the information is correct. Always remember the maxim: Don't trust, check.
- 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.
- 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.
- 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.