The increasing value of cryptocurrency is making it more worthy in today’s world. Since the whole concept of cryptocurrency is digital cash so now it is more prone to hackers. Utmost security should be maintained to ensure that your cryptos are safe. All precautions can fall short, so always ensure to backup your hardware wallet. In this article, we will see why you need a hardware wallet backup.
In this article, we will assume that the user is using a Ledger Nano S or Trezor hardware wallet. Hardware wallets are always recommended due to their ease of use and security reasons.
Now, we will go to why we need a hardware wallet backup but before that let us first see how we do that. There is no rocket science involved in backing up your hardware wallet. To get a copy of the Ledger or Trezor device’s backup just note down the 24 word phrase on the card that has been already provided by the company. And never put the keys in any online device or even in MyCrypto.com. They are not safe at all, as the digital world is now too prone to getting hacked.
Hardware Wallet Backup
A hardware wallet serves the purpose of your keeping your cryptocurrencies safe. When you avail of a hardware wallet, you will be provided with a device that will allow you to access all your funds. There are least chances that you will lose the device until it is stolen, destroyed, or dropped in the toilet or by something else.
If anything uncertain like mentioned above happens you will want to access your funds without your wallet and that is when you will need a backup of your hardware wallet. The backup of your cold wallet is those 24 word series which is the standard value in both Ledger and Trezor.
But if you lose the backup as well, say for instance you kept it with your hardware wallet or it fell from the cliff then your backup is worthless.
What You Should Avoid Doing To Keep Your Hardware Wallet Backup Safe?
There are few things that should be kept in mind regarding the ways in which you can keep your hardware wallet backup safe.
- Avoid carrying the backup for your day to day activities. It increases the chances of theft.
- In order to prevent your backup from large scale disasters always try to avoid keeping your hardware wallet and the backup at the same place. This reduced the risk of both getting destroyed at the same time.
- Next and the most important thing. Do not store the 24 words in any electronic or digital device. There is a huge chance of that getting stolen as nothing in the electronic and digital field is safe.
- To keep them safe ensure that both are kept in different places so that they do not get stolen or lost at the same time.
Where you keep your backup completely depends on you. It can be stored in any storage unit, or any safety deposit box, or any other place. It depends on your situation completely.
Why Do You Need Hardware Wallet Backup The Most?
Now let us delve deep into the circumstances where the backup is most necessary.
Loss or Destruction
When your hardware wallet starts to malfunction or you lose it, backup helps you the most. With the backup, you get access to all your data and you can operate your digital funds. This will act as your savior.
In case of theft, it is suggested to transfer all your funds and data as soon as possible as they will have access to all your crypto information. Backup enables you to make the necessary changes quickly and efficiently.
Adding to that, if you are using a Ledger hardware wallet, you will already have the 24 word phrase backup ready. This can also get lost or destroyed in the worst scenario.
When we say quick access there are two different cases that are associated with it. One is in the case of security and the other is the convenience of your crypto assets. The ease of usability is the main reason Ledger hardware wallets are used widely. It provides quick access to all your crypto funds with the help of just a smartphone.
You will have dedicated devices with two hardware wallets. If you are using Ledger wallets, then your first Ledger Nano S or Ledger Nano X could be used for crypto assets and the second one could be used for utility apps. So you will have multi-use from one device.
Despite all these tactics, it is you who will have to analyze your situation. Will your life get over if you lose your funds? How much currency do you have stored in? After analyzing based on your result you take your steps in securing it. A hardware crypto wallet should be one’s first choice despite its cons. So start a hardware wallet backup of your crypto account.