Sunday, August 14, 2022

How To Backup Crypto Wallet

Pay Extra Attention To Your Passwords

How to Backup Your Crypto Wallet with Trust Wallet

This might sound like a cliche, but we all know how easy it is to create a password that is easy to remember.

There is a reason why traditional banks provide complicated PIN codes, tokens and endless password you have to input. They know how much hackers are waiting for one mistake and being able to access all your funds.

The same goes for cryptocurrency wallets you have to protect your password and cryptographic keys. Use wallets that have a good reputation and provide extra security layers.

The best wallets out there have a two-factor authentication system and additional PIN code that you have enter every time you try to open the application.

Another additional security level is a multisig transaction its a multi-signature wallet that requires a permit from another user before a transaction can be made. For instance, Copay gives a choice between having a single or multiple signatures.

Why Core Wallet Bitcoin Core Wallet

Whatever the wallet type is first of all you have to understand that the crypto coins which you hold are not stored in your wallet. They are stored in a public encrypted digital ledger called Blockchain. While the Banks store your funds on their private ledger Cryptocurrencies store it in a distributed public ledger and thats the beauty of crypto currencies. It is decentralized and you are the bank. The private keys is what gives access to the funds thats stored on a public address. If you lose them you lose all your funds and always remember that if you dont own the private keys you down own the funds your wallet holds.

With core wallet you own your private keys and so you have full control of your funds. For any crypto currencies there will definitely be a core wallet. For Bitcoin use can find the Bitcoin Core wallet, for Dash you can find Dash Core wallet and for Litecoin here is the Litecoin core wallet. Core wallet is the official wallet for any given crypto currency and its recommended by most.

What Is Qt And Qt Wallet

QT is an UI framework and a cross platform application for developers built using C++ programming language. It helps developers to easily create software applications.

QT wallet Most of the crypto currency core wallets are developed using QT software framework. They are available for Windows, Linux and Mac. QT wallets are professional client and offers full function thats available for a currency. Also they are heavy as it is known to download the complete blockchain to your local computer.

Depending on the coin type these are the following features which you can find in most QT wallets

  • Wallet Backup
  • Debug Console and
  • Block Explorer

Before explaining all these features well give an quick introduction on wallet setup first and for this well use Dash Core wallet as an example. Note that this wallet guide and explanation applies to Bitcoin, Litecoin and almost any Altcoins core wallets.

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What Is A Wallet Phrase

You can find it under the names of recovery phrase, backup phrase, seed phrase, seed recovery phrase, or backup seed phrase. Its a list of words that contain the needed information and keys for unlocking and recovering your crypto e-wallet. It works similarly to the cards PIN code and keeps your Bitcoins safe from stealing. If your device breaks, you can download the same wallet or use the same hardware device and use the seed phrase to restore access.

But, you need to be very careful with this phrase. You must keep it in a safe place and never type it into any website. These seed phrases work with the blockchain funds. The technologies the other crypto networks are using are similar to them, but not the same.

The e-wallet takes a few words from the English dictionary and assigns a number to every one of them. The phrase can be converted into a number combination that keeps the information of keys the user needs to access the Bitcoin wallet. Let the system generate a phrase for you because if you try to do it alone, you can use some recognizable pattern that is easy to hack and access. Also, you can enable two-factor phrases, just like you use two-factor authentication to access some of your online profiles.

How To Backup Bitcoin Wallet

How To Backup 12 Words Phrase Jaxx Wallet In Chrome ...

Contents2)A Few Words Before You GoLiam Kemp

As cryptocurrencies like Bitcoin , Ethereum , and other altcoins are becoming increasingly popular, the need for secure storage is also rising. Hot wallets such as desktop wallets and web wallets are handy specifically for storing smaller amounts of crypto assets, as they are less secure than cold storage because of their connection to the internet.

However, cold wallets or hardware wallets are considered the most secure way of storing your BTC and other currencies. The fact that offline wallets like Trezor or Ledger Nano S and Ledger Nano X series arent connected to the web and keep your private keys secure on these encrypted, specialized USB devices means your data is secure and only you have the necessary credentials for the wallet.

Its a great idea to combine a web wallet with a hardware device so that even if someone hacked the account of a web wallet you are using, they still wouldnt be able to access your funds because the private keys to your crypto are stored in the connected hardware wallet.

Lets see how you can back up your Bitcoin wallet just in case you misplace, lose, or somehow get your hardware wallet device damaged or stolen.

Read Also: How To Exchange Cryptocurrency To Cash

A Better Way To Backup Your Ethereum Wallet

Argent is an Ethereum wallet with no seed phrase no paper backup.

Argent is a “smart contract” wallet, and introduces a concept we call Guardians.

Guardians are other people and devices that you trust. Guardians are a better way to “backup” your Ethereum wallet.

If your wallet is lost or stolen, you get a new phone, install Argent, enter your Ethereum wallet address and start a recovery.

To complete recovery, you contact your Guardians or use another Ethereum wallet with the Argent Security Center. Follow the instructions in the app and you will have access to your wallet again after 36 hours.

Backing up your Ethereum wallet on a piece of paper is a single point of failure.

Argent allows you to distribute your security, and is better than traditional Ethereum wallet backups. With Argent, you can cover any eventuality, including death and inheritance, theft or loss.Protect your money with Argent

Core Wallet Crypto Currency Wallet Explained

If you look at your wallet main window youll find menu bar, tab bar, main area and status bar. Not just in Dash wallet, most of the crypto currency core wallets have the similar elements and design.

In menu bar youll find file, settings, tools and help. Under file menu youll find backup option, sign message and addresses. Under settings youll find an option to encrypt wallet and other general wallet settings. Under tools youll find network information, debug console and other configuration settings. In help menu you can find the wallet version and other legal information.

Depending on the wallet design and coin specifications youll find the following elements in the tab bar.

The above image is from Denarius Core wallet.

  • Overview tab shows your wallet balance and transaction details.
  • Send Coins tab is used to send coins to another address.
  • Receive Coins tab is where you can create a new wallet address or set a label to the address. It generates a new address along with the QR code.
  • Transactions tab shows the complete list of transaction that your wallet processed just like your Bank statement.
  • Address book is where you can store the list of wallet address just like your phone address book. This helps you to choose the address when you are often doing transactions.
  • How to encrypt your wallet
  • How to backup your wallet
  • How to export private keys using your wallet and
  • How to stake your wallet
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    What Is The Cryptosteel Capsule

    Cold storage you can trust!

    With this backup for your crypto wallet, you can be sure that your precious data – and cryptocurrency will remain protected. With every Cryptosteel® capsule, you get:

    Complete security by helping you keep your keys offline.

    Absolute durability with a capsule made of high-grade German steel. It’s Shockproof, Waterproof, Hackerproof & Fireproof up to 1400C / 2500F.

    Full compatibility with over 99% of cryptocurrency wallets on the market.

    This is the kind of protection that won’t ever let you down. Easy to use and impervious to harm, this is a simple yet elegant solution to defending your cryptocurrency wallet against all threats and mishaps, both online and offline. Because you deserve to have your peace of mind – and all your cryptocurrency – completely intact.

    Online And Account Wallets

    How To Get Backup Of Atomic Wallet | Crypto Wallets For Beginners

    Online wallets are online services that run on a cloud and are accessible from any place where you can access the internet. They are very convenient for everyday use, but the fact that they store your private keys online makes them less secure. In addition, when you use an online wallet, your private key is controlled by a third-party, a consideration that adds to the risks.

    Account wallets are a type of online wallets. When you register an account on a cryptocurrency exchange, such as StormGain or Binance, you automatically receive a built-in wallet. The main advantage of this method of storing crypto is your ability to use it for trading whenever you want. The disadvantages are similar to those of online wallets. However, an exchange can store cryptocurrency in hot wallets only partially, while holding most of it in cold wallets for security reasons. StormGain’s wallet offerings are a good example of that approach.

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    Why Should You Back Up Your Wallets

    Since cryptocurrency is decentralised, there is no customer service number you can call when you make a mistake or lose access to your wallet. This can be scary, but if you are on top of wallet security, this attribute is very empowering.

    For each wallet, you will be given some form of passphrase or key as your backup, but these passphrases and keys are only as secure as how you store them. Each wallet type will have a way to do a backup this guide is about how to backup your backups.

    If you have your wallet password, key or passphrase written on a piece of paper in your sock drawer, what happens when you lose that piece of paper? If you have your passphrase written in a text document on your computer, what happens if your computer suddenly craps out?

    Assuming that your crypto is not as safely backed up as it could be, in todays guide, I am going to teach you how to backup your crypto so securely that if you lost access to your computer, phone, or filing cabinet, you would still be able to access your crypto remotely.

    How Do Cryptocurrency Wallets Work

    There is a considerable amount of people who are confused about the technology behind cryptocurrency wallets, even though theyre using them on an everyday basis.

    Unlike traditional wallets, digital wallets dont store the currency. And it comes down to the fact that digital currencies are not stored anywhere. They dont exist in a physical form and they dont have a location like traditional money, stored in bank vaults.

    Virtual money exists in a form of transactions records, which are registered on the blockchain.

    Since you want to start investing in cryptocurrency, you must know that to make cryptocurrency transactions, you need both public and private cryptographic keys. These keys are extremely important in providing security for your virtual money.

    The public key gives you an address and is visible to all members of the peer-to-peer network. This is a number that other members will use to identify you and which you would have to provide if you want to receive a transfer from another user.

    The private key is what you have to keep secret at all times. The combination of both keys is required as a signature on a message that is attached to your transaction.

    If you lose your private key, you will also lose your money and you wont be able to get them back!

    To be able to unlock a transaction, both private and public key have to match each other.

    Its important to remember there isnt a physical exchange of coins the balances of the wallets either increase or decrease.

    Also Check: How Does Cryptocurrency Trading Work

    If You Still Have Your Backup Phrase:

    Open the app and go to the gear icon at the bottom right. Then scroll down and choose Create or Import a Key. Then, choose Import Wallet and the Recovery Phrase tab. Type out your 12 word recovery phrase and click Import to restore your funds. Do not use any punctuation.

    About Your Wallet’s Backup

    How to Backup Your Crypto Wallet with Trust Wallet

    This backup process does not back up your hardware wallet data. The Trezor secret phrase is a separate phrase that is displayed on the hardware device screen when you first set up your Trezor. If you have a hardware wallet connected to Exodus, you will see a warning in the Backup tab.

    Backing up your wallet by writing down your 12-word secret recovery phrase will allow you to restore your wallet on another device at any time: How do I restore from my 12-word secret recovery phrase?

    You only need to back up your wallet once but doing so will ensure that you can regain access to your blockchain assets if your device breaks, gets stolen, or is lost.

    Exodus allows you to try the wallet before having to back it up. We want to make sure that Exodus is right for you before you go ahead and write down your 12-word secret recovery phrase and set a password!

    Once you decide that Exodus is right for you and make your first deposit, the backup option will be highlighted with an exclamation mark in an orange triangle or a pop-up screen so that you can start the straightforward and simple backup process. You can also start the backup process before your first deposit if you wish.

    Back up your wallet in a private location where no one is able to see your screen. Also, be sure not to back up your wallet over a public WiFi connection, where hackers can snoop on you.

    For more information about backing up your wallet check out these articles:

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    How To Transfer Cryptocurrency Between Wallets

    When someone sends you cryptocurrency, they are essentially transferring ownership of the coins to your wallet’s address. There is no real transfer of any coins. A transaction is made by recording it in the blockchain. To manage these coins, you need a private key that matches the public address the cryptocurrency was transferred to.

    The exact process for sending your cryptocurrency to another wallet depends on your particular wallet’s interface. However, it tends to be a fairly simple task. You just need to enter the recipient’s public address, the amount of cryptocurrency you want to transfer and confirm the transaction. Be careful when entering the address because cryptocurrency transactions are irreversible. If you enter a wrong address, you won’t be able to get your coins back.

    $34 Billion In Lost Value

    Of the 16.4 million Bitcoin said to be in circulation in the middle of 2017, close to 3.8 million, may have been lost because their owners no longer are able to claim their holdings. Based on todays valuation, that could total as much as $34 billion dollars in lost value. And thats just Bitcoin. There are now over 1,500 different cryptocurrencies, and we dont know how many of those have been misplaced or lost.

    Now that some cryptocurrencies have reached staggering heights in value, its likely that owners will be more careful in keeping track of the keys needed to use their cryptocurrencies. For the ones already lost, however, the owners have been separated from their currencies just as surely as if they had thrown Benjamin Franklins and Grover Clevelands over the railing of a ship.

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    Recovery Phrases Are Critical To Securing Your Crypto Hardware Wallets

    While physically securing your wallet and PIN is vital, the storage of your recovery phrase is equally important. Remember to store any copies safely offline as unauthorized access would allow the regeneration of your wallet. If you have any recovery phrases stamped onto steel, consider keeping them in secret and locked locations. Its also wise to split up your recovery phrase or use a recovery shares mechanism to help secure your wallet. You could also have a passphrase for a secret account to enhance anti-theft measures. Be sure to follow these best practices if youre using a hardware wallet you dont want to be left without your keys and your coins.

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