What are the backup methods for cold wallets, and which one is the safest?

Cold wallet backups, using methods like seed phrases (hardware/software) and printed paper wallets, require multiple secure storage locations (e.g., home safe, bank vault, encrypted USB) to minimize loss risk.

Feb 28, 2025 at 02:40 pm

• Mnemonic backup : When you first set up your hardware wallet, the device generates a set of mnemonic words composed of 12 to 24 words. This is the key to restoring your wallet. For example, when you set up Ledger Nano S, follow the prompts and the mnemonic words will be displayed on the screen. You need to write them down with notes, and be sure to ensure accuracy.

• Device backup : Some hardware wallets support backup of data in the device. You can use the supporting software to select the backup function after connecting the device to backup the relevant data in the wallet to a designated storage medium, such as an encrypted USB drive.

• Paper backup : The paper wallet itself prints the private key and public key on paper. When backing up, you can reprint a exactly the same paper wallet and store the newly printed and original ones in different safe locations, such as the home safe and the bank safe.

• Digital encryption backup : The contents of paper wallets can be converted into electronic files through scanning, etc., and the files can be encrypted using professional encryption software, set high-strength passwords, and then stored in an encrypted USB device or secure cloud storage (need to confirm the security of cloud services).

• Private key backup : Open the software wallet, enter the settings or backup options, and follow the prompts to export the private key. Taking Electrum as an example, find the "Wallet" menu in the software interface, select "Backup Wallet", copy the private key, store it in a secure text file, and save it to an encrypted USB device.

• Mnemonic word backup : Software wallets usually generate mnemonic words. The mnemonics recorded when creating a wallet can be copied and backed up again. For example, in imToken, enter the wallet settings, select the backup mnemonic, re-copy it on new paper, and store it properly.

• Mnemonic backup security : If mnemonic words are acquired by others, assets are easily stolen. Therefore, the paper that records mnemonic words should be placed in a fire-proof, water-proof and anti-theft-proof security place to avoid electronic devices storing mnemonic words to prevent hackers from attacking.

• Paper backup security : Paper is easily damaged and lost. You should choose a paper printing wallet with good quality and place it in a waterproof and fire-proof safety box, and place multiple backups separately.

• Digital encryption backup security : convenient but risky. If the encryption strength is insufficient or the storage device is infected with viruses or hacked, information leakage may occur. Reliable encryption software is required to regularly update security patches for encryption devices and software.

Overall, there is no absolutely safest backup method, and multiple methods need to be combined. Mnemonic backup and paper backup are written on different papers and stored in different geographical locations. At the same time, important information is digitally encrypted and backed up.

For example, a mnemonic paper is placed in a safe at home, and a bank safe is placed in a digital encrypted backup stored on an encrypted USB device and checked regularly. This multi-pronged approach can ensure the security of cold wallet backups to the greatest extent and reduce the risk of asset losses due to a single factor.