Skip to main content

How to Backup Your Crypto Wallet: Complete Guide

Your cryptocurrency wallet backup is more important than the wallet itself. Hardware wallets can be replaced. Software wallets can be reinstalled. But if you lose your backup — your seed phrase — your funds are gone forever. No company, no authority, and no technology can recover cryptocurrency from a wallet whose seed phrase has been lost. This irreversibility makes proper backup procedures the single most critical aspect of cryptocurrency self-custody.

This guide covers every aspect of wallet backup — from the basics of seed phrase management to advanced strategies involving metal storage, geographic distribution, and redundant systems.

What You Are Actually Backing Up​

Seed Phrases (Recovery Phrases)​

Modern cryptocurrency wallets use a seed phrase (also called a recovery phrase or mnemonic phrase) as the master backup. This is a list of 12 or 24 words selected from a standardized word list defined by BIP-39.

From this seed phrase, the wallet can derive:

  • The master private key
  • All child private keys for every cryptocurrency
  • All corresponding public keys and addresses
  • The complete transaction history (by scanning the blockchain)

This means your seed phrase IS your wallet. Everything else — the hardware device, the software application, the passwords — is merely an interface for accessing the wallet represented by the seed phrase.

What the Seed Phrase Contains​

A 24-word seed phrase encodes 256 bits of entropy (randomness) plus a checksum. This amount of entropy is astronomically large — there are more possible 24-word combinations than atoms in the observable universe. It is computationally impossible for anyone to guess your seed phrase.

Additional Backup Items​

Depending on your wallet setup, you may need to back up more than just the seed phrase:

ItemWhen NeededRisk If Lost
Seed phrase (12/24 words)AlwaysTotal loss of funds
Passphrase (25th word)If using passphrase featureLoss of passphrase-protected accounts
Wallet derivation pathsIf using non-standard pathsDifficulty finding accounts during recovery
Multisig configuration fileIf using multisigDifficulty reconstructing multisig wallet
PIN/passwordFor device access onlyNeed to restore from seed phrase
Account listFor convenienceTime-consuming to rediscover accounts

Backup Media: Choosing the Right Material​

Paper Backups​

Paper is the simplest and most accessible backup medium. It requires no special tools or technical knowledge.

Pros:

  • Free and universally available
  • No electronic components to fail
  • Easy to create and verify
  • Readable without any special equipment

Cons:

  • Vulnerable to water, fire, humidity, and UV light
  • Degrades over time (ink fades, paper yellows)
  • Can be accidentally thrown away
  • Easily readable by anyone who finds it

Best practices for paper backups:

  • Use archival-quality, acid-free paper
  • Write with a ballpoint pen (not inkjet, not pencil)
  • Laser print if possible (more durable than ink)
  • Laminate or store in a waterproof container
  • Keep in a fireproof safe
  • Store at least two copies in different locations

Metal Backups​

Metal seed storage is the gold standard for seed phrase durability. Stainless steel and titanium resist fire, water, corrosion, and physical impact.

Types of metal backup:

Product TypeMethodPrice RangeDurability
Stamp plates (Blockplate, Steelwallet)Punch letter stamps into steel$30-$80Excellent
Tile capsules (Cryptosteel, Billfodl)Insert letter tiles into frame$60-$100Excellent
Engraved platesCNC or laser engraving$40-$80Excellent
DIY steel washersStamp letters on washers, bolt together$10-$20Good

Metal durability ratings:

ThreatStainless SteelTitaniumPaper
House fire (500-700degC)SurvivesSurvivesDestroyed
Industrial fire (1,000degC+)SurvivesSurvivesDestroyed
Flood / waterSurvivesSurvivesDestroyed (usually)
Corrosion (decades)ResistantHighly resistantDegrades
Physical impactSurvivesSurvivesDamaged
UV / sunlightNo effectNo effectFading

Creating a metal backup:

  1. Acquire your chosen metal backup product
  2. Stamp, engrave, or assemble the words in order
  3. Verify every word matches your original seed phrase
  4. Store in a secure location separate from your wallet device
  5. Periodically inspect for readability (annually)
SafeSeed Tool

Before committing your seed phrase to metal, verify it independently using SafeSeed's Seed Phrase Generator validation feature. Enter your words to confirm they form a valid BIP-39 seed phrase with the correct checksum. This catches any errors before you stamp them permanently into steel.

Storing seed phrases digitally is generally discouraged. However, if you must, understand the risks:

Why digital backups are dangerous:

  • Cloud storage can be hacked or subpoenaed
  • Local files can be stolen by malware
  • Encrypted files may be cracked as computing advances
  • Screenshots sync to cloud services automatically
  • Deleted files can be recovered with forensic tools
  • Password managers create a single point of compromise

If you insist on a digital backup:

  • Encrypt with a strong, memorized passphrase (not stored digitally)
  • Use well-audited encryption software (VeraCrypt, GPG)
  • Never store on a cloud-connected device
  • Understand that this weakens your security model

For the vast majority of users, paper and metal are strictly preferable to any digital backup method.

Backup Strategies by Risk Level​

Basic Strategy (Good)​

For holdings under $5,000:

  1. Write seed phrase on paper (2 copies)
  2. Store one copy in a home safe or secure drawer
  3. Store the second copy at a trusted relative's home or office
  4. Keep the wallet device in a separate location from the paper backup

Cost: ~$0 (paper and pen) Protection: Against device failure, minor fire/flood, simple theft

Standard Strategy (Better)​

For holdings $5,000 - $50,000:

  1. Write seed phrase on paper (verify accuracy)
  2. Transfer to a metal backup (stainless steel plate)
  3. Store the metal backup in a different location from the device (e.g., bank safety deposit box)
  4. Keep the paper copy in a home fireproof safe as a secondary backup
  5. Store the hardware wallet in a secure location at home

Cost: ~$50-$100 (metal backup + optional safe) Protection: Against device failure, fire, flood, theft, degradation

Advanced Strategy (Best)​

For holdings over $50,000:

  1. Write seed phrase on paper during device setup (verify immediately)
  2. Create two metal backups from the paper original
  3. Store metal backup #1 in a bank safety deposit box
  4. Store metal backup #2 in a geographically distant location (family home in another city, second safety deposit box)
  5. Destroy the paper original after verifying both metal copies
  6. Keep the hardware wallet at home
  7. Consider a passphrase (25th word) memorized or stored separately from the seed
  8. Document recovery procedures (without the seed phrase) for a trusted person

Cost: ~$100-$200 (two metal backups) Protection: Against device failure, fire, flood, theft, regional disasters, degradation

Maximum Security Strategy​

For holdings over $500,000:

  1. Use a multi-signature setup (2-of-3 or similar)
  2. Each key gets its own metal backup
  3. Store keys and backups in separate geographic regions
  4. No single location contains enough keys or backups to meet the signing threshold
  5. Professional estate planning with crypto-aware attorney
  6. Sealed recovery instructions in a trust or will
  7. Regular (annual) verification that backups are intact and readable
  8. Consider Shamir's Secret Sharing for additional backup distribution

Cost: $300+ (multiple metal backups, legal fees, safety deposit boxes) Protection: Against nearly all scenarios including targeted theft, regional disasters, and personal incapacity

See our Multi-Signature Wallets Guide for multisig setup details.

Backup Security: Protecting Against Threats​

Threat: Fire​

Solution: Metal seed backups survive all but the most extreme industrial fires. For paper backups, use a fire-rated safe (UL Class 350, rated for paper protection).

Threat: Water/Flood​

Solution: Metal backups are waterproof. For paper, use lamination or store in a waterproof container within your safe.

Threat: Theft​

Solution: Store backups in locations that require authorization to access (safety deposit boxes, locked safes). If using a passphrase, even a stolen seed phrase is useless without it. For maximum protection, use geographic distribution so no single location compromise is sufficient.

Threat: Natural Disaster (Regional)​

Solution: Geographic distribution. Store backups in at least two different regions/cities so a regional disaster (earthquake, hurricane, wildfire) cannot destroy all copies simultaneously.

Threat: Discovery by Family/Visitors​

Solution: Store in a locked safe. For additional stealth, use a metal backup that is not obviously labeled as a crypto seed phrase. Some metal backups look like ordinary metal plates or hardware.

Threat: Memory Loss/Incapacity​

Solution: Document your recovery procedure (without including the seed phrase) and share with a trusted person, attorney, or estate planner. Include information about where backups are stored, what wallet software you use, and how to recover.

Threat: Degradation Over Time​

Solution: Metal backups are effectively permanent. For paper, inspect annually. Replace any backup showing signs of degradation (fading, water damage, yellowing).

Seed Phrase Verification​

After creating any backup, verification is essential.

Verifying Paper/Metal Backups​

  1. Compare your backup word-by-word against the original device display
  2. Pay special attention to similar-looking words (e.g., "abstract" vs "absurd")
  3. Verify the word order (position numbers)
  4. If possible, use the wallet's built-in seed verification feature

Full Restoration Test​

The most thorough verification is a full restoration test:

  1. Ensure your backup is secured
  2. Reset your wallet device to factory settings
  3. Choose "Restore from seed phrase"
  4. Enter the seed phrase from your backup
  5. Verify the same addresses are generated
  6. Verify your balance appears correctly

This test proves that your backup will work when you actually need it. Many people skip this step and discover errors only during a real emergency.

Cross-Verification with SafeSeed​

Use SafeSeed's tools to independently verify your seed phrase produces the expected addresses:

  1. Use the Address Generator on an air-gapped computer
  2. Enter your seed phrase
  3. Generate addresses for your cryptocurrencies
  4. Compare with the addresses your wallet displays
  5. If they match, your seed phrase is correctly backed up

Important: Only perform this verification on an air-gapped computer. Never enter your seed phrase on any internet-connected device.

Passphrase (25th Word) Backup​

If you use a passphrase (sometimes called a 25th word) with your wallet, it requires its own backup strategy.

Why Separate Backups Matter​

The passphrase should be stored separately from the seed phrase. This way:

  • If someone finds your seed phrase, they cannot access passphrase-protected accounts
  • If someone finds your passphrase, it is meaningless without the seed phrase
  • Both pieces must be compromised for an attacker to access funds

Passphrase Backup Options​

  1. Memorization: The passphrase can be memorized if it is short enough. Risk: memory loss, cognitive impairment.
  2. Separate metal backup: Create a second metal backup for the passphrase, stored in a different location from the seed phrase.
  3. Sealed legal document: Include in a sealed letter held by an attorney, to be opened only under specific conditions.
  4. Split between trusted parties: Tell half the passphrase to one trusted person and half to another.

Multisig Backup Considerations​

Multi-signature wallets require backing up additional information beyond individual seed phrases.

What to Backup for Multisig​

  1. Individual seed phrases: Each key's seed phrase, stored separately
  2. Extended public keys (xpubs): The public keys used to construct the multisig address
  3. Wallet configuration file: The descriptor or configuration that defines the multisig setup (M-of-N, derivation paths, all xpubs)
  4. Software/version information: What wallet software was used to create the multisig

Why the Configuration File Matters​

Without the configuration file, reconstructing a multisig wallet requires:

  • All M xpubs to be available
  • Knowledge of the exact derivation paths used
  • Knowledge of the script type (P2SH, P2WSH, etc.)
  • Knowledge of the threshold and key ordering

If this information is lost, recovery becomes extremely difficult, even with all seed phrases available. Always store copies of the multisig configuration file alongside each key's seed phrase backup.

Backup Don'ts: Critical Mistakes to Avoid​

Never Store Seed Phrases Digitally​

This includes:

  • Plain text files on your computer
  • Notes apps on your phone
  • Cloud storage (Google Drive, iCloud, Dropbox)
  • Email (sent to yourself or anyone else)
  • Password managers (adds a single point of compromise)
  • Screenshots or photos
  • Encrypted files on internet-connected devices

Never Share Your Seed Phrase​

No legitimate service, company, or support team will ever ask for your seed phrase:

  • Not Ledger support
  • Not Trezor support
  • Not MetaMask support
  • Not "crypto recovery services"
  • Not "wallet verification" websites

Anyone asking for your seed phrase is attempting to steal your cryptocurrency.

Never Store Seeds and Devices Together​

If a thief accesses the location where you keep both your hardware wallet and seed phrase backup, they have everything needed to steal your funds. Always separate them.

Never Rely on a Single Copy​

One copy of your seed phrase means one point of failure. A house fire, flood, or simple misplacement destroys your only backup. Always maintain at least two copies in separate locations.

Never Use a "Brain Wallet"​

A brain wallet relies on memorizing the seed phrase without any physical backup. Human memory is unreliable — illness, injury, aging, or simple forgetting can result in permanent loss. Always create a physical backup, even if you also memorize the phrase.

Inheritance and Emergency Access​

Your backup strategy should account for what happens if you become incapacitated or pass away.

Basic Inheritance Planning​

  1. Document the existence of your cryptocurrency holdings (not the seed phrase — just that holdings exist)
  2. Write recovery instructions explaining how to access your crypto, what wallet to use, and where backups are located
  3. Store these instructions in a sealed envelope with your will, attorney, or trusted family member
  4. Separate information: The person who knows where to find the instructions should not be the same person who can access the seed phrase backup
  5. Update periodically as your holdings and wallet setup change

Using a Trusted Third Party​

  • Attorney: Include recovery information in a sealed letter stored with your will
  • Estate planner: Integrate crypto assets into formal estate planning
  • Semi-custodial services: Services like Casa offer collaborative custody with inheritance features

Dead Man's Switch​

Some cryptocurrency holders implement a "dead man's switch" — a system that triggers after a period of inactivity:

  • A scheduled email with partial recovery information, sent only if you do not cancel it periodically
  • A time-locked smart contract that releases access to designated heirs after a specified period
  • A trusted service that holds a multisig key and releases it based on predefined conditions

These systems are complex and introduce their own risks but may be appropriate for large holdings or people without trusted family members.

Backup Checklist​

Use this checklist whenever you set up a new wallet:

  • Seed phrase written on paper (verified word by word)
  • Second paper copy created and verified
  • Metal backup created and verified
  • Paper backup stored in fireproof/waterproof container
  • Metal backup stored in separate geographic location
  • Passphrase (if used) backed up separately
  • Multisig configuration file backed up (if applicable)
  • Full restoration test completed successfully
  • Recovery instructions documented for emergency access
  • Trusted person informed about backup locations
  • Annual inspection reminder set

FAQ​

How many copies of my seed phrase should I have?​

At minimum two, stored in separate locations. For significant holdings, three copies (one paper, two metal, all in different locations) provides robust protection. More copies increase availability (resistance to loss) but also increase the risk of discovery/theft. Balance based on your threat model.

Is it safe to store my seed phrase in a bank safety deposit box?​

A bank safety deposit box is a reasonable location for one of your backup copies. It provides protection against home fire, flood, and theft. However, safety deposit boxes can be subject to government seizure, bank failure, or access restrictions (bank hours, branch closures). Do not rely on a safety deposit box as your only backup location.

What if my metal backup becomes unreadable?​

High-quality stainless steel and titanium backups should remain readable for decades. However, inspect your backups annually. If stamped letters are becoming difficult to read, create a new metal backup while the original is still legible. Poor quality metals or shallow stamps may degrade faster.

Should I split my seed phrase into parts and store them separately?​

Splitting a seed phrase (e.g., words 1-12 in one location, words 13-24 in another) is sometimes suggested but has significant drawbacks. Each half substantially reduces the security of the remaining words, making a brute-force attack feasible. If you want distributed backup security, use Shamir's Secret Sharing (available on Trezor as SLIP-39) or a proper multisig setup instead of naively splitting the phrase.

Can I memorize my seed phrase instead of writing it down?​

Memorizing your seed phrase as an additional backup is fine, but never rely on memory alone. Human memory is unreliable — illness, injury, stress, or the passage of time can cause you to forget or confuse words. Always maintain a physical backup.

How often should I verify my backups?​

Inspect your backups at least once a year. Verify that paper is still legible, metal plates are intact, and you can locate all copies. Consider doing a full restoration test with a spare device annually for your highest-value wallets.

Is engraving my seed phrase on jewelry (ring, pendant) a good idea?​

While creative, this approach has problems: limited space may force abbreviation (introducing ambiguity), the words are visible to anyone who sees the jewelry, and it does not provide the fire/flood protection of a proper metal plate stored securely. It can work as one of multiple backups if the words are complete and correct, but should not be your primary backup.

What if I find a backup I do not recognize?​

If you find a seed phrase backup you do not remember creating, it may be from a wallet you set up and forgot. You can safely check its contents by restoring on a test device or using SafeSeed's tools on an air-gapped computer. Do not enter unknown seed phrases on an internet-connected device — the backup could be a trap designed to monitor for restoration and then drain the wallet.