Home Financials How to Backup and Restore a Bitcoin Wallet – 2021 Guide

How to Backup and Restore a Bitcoin Wallet – 2021 Guide

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Source: fintechnews.sg

Cryptocurrency is a phrase that you can hear on every corner in today’s world. Many people do not understand how lucky they are for living in the 21st century. We do not want to say that everything in today’s world is perfect. Yet, having the opportunity to use advanced technology is amazing for many reasons. People can now communicate with people from all parts of the world for free. Logically, the only thing they need to have is a decent smart device as well as a stable Wi-Fi connection.

On the other hand, you do not have to use online technology only for fun. It is also a perfect place for people that want to learn new things and ensure financial stability. Technology improvement has brought many new industries to the worldwide population. One of those that deserve your attention is the cryptocurrency field.

Can You Get Rich with Digital Currencies (and How)?

Source: ineteconomics.org

The answer to the question from the subtitle does not have a clear answer. It depends a lot on different factors, and most of them you can control. You primarily need to work on your education and skill improvement. People often forget that success is not a matter of luck. You need to invest a lot of effort to reach the final goal. Fortunately for you, there are many ways of how you can become a better crypto investor.

The online world is a place full of information. You can find different blogs similar to this one to find answers. Despite that, you can also connect with different crypto communities. Spending time with experienced investors can help you determine the best strategies and tactics.

In the end, we need to thank developers that managed to program a trading app that can help us ensure income with cryptos. These apps can help you follow the latest trends, get valuable data, etc.

For more info check  https://cfds-trader.com/

Ways to Backup and Restore Bitcoin Wallet

Source: bitcoinist.com

Don’t expect you will find all the answers in this article. However, we would like to teach you how to backup and restore a bitcoin wallet. It is one of the essential moves that you need to have. Unfortunately, many people do not understand the importance of wallet backups.

With wallet backups, you can protect your bitcoins whenever a software or computer failure occurs. People often say “it won’t happen to me” or “I will do that later”. However, these excuses and ways of thinking can sometimes cost you a lot. It is in your best interest to react on time and protect yourself.

Bitcoin wallet backup is possible in three different ways. Which way you will use depends on the software that you use. That is the reason why we recommend you primarily get familiar with the wallet you use. After you do that, you can use one of the ways that we described in the list below.

BIP 32

Source: btcmanager.com

We know some terms here will probably confuse you a little. That is the reason why we will try to explain things as easily as possible. BIP 21 is one of the methods that allow people to determine key pairs from a single seed. The purpose of the seed is to generate xprv. XPRV refers to the master private key, and we recommend you remember that. After you generate xprv, you can import it to any type of BIP 21 complaint HD wallets.

Wallet backup, in this case, is not complex at all. After you get the master key, you need to copy it to a text file and back it up to another device. Keep in mind the file has to be encrypted. On the other hand, you can also use the option to create a QR code. After you do that, we recommend you print the code and place it in a safe place.

On the other hand, restoring the backup is not difficult as well. You only need to paste the xprv to the wallet. Believe it or not, that’s everything you have to do.

Wallet.dat

Source: bangkokpost.com

The next option we have for you is wallet.dat. It is a method that some Bitcoin software solutions are using. The purpose of this method is to comprise the backing up of a wallet.dat file. We assume that most of our readers do not know what this file exactly is. In short terms, it is a file where you can find keys to spend addresses, transaction information, outputs, etc. You will manage to find it at different addresses, and that directly depends on the operating system that you use. For instance, if you use Windows, you can find it on %APPDATA%\Bitcion. On the other hand, if you use MAC OS you can find it on this address – /Library/Application Support/Bitcoin/.

After you locate the file, the backup process starts. You primarily need to copy it to another device. For instance, you can use a CD, USB drive, or any other computer that you use. If you have a private home cloud storage, that will work as well. Mega, Dropbox, or any other cloud storage are also a good option. Of course, you need to ensure that your file is encrypted. If it is not, everyone will have access to it. That means that people can steal your coins.

Restoring the backup is even easier. Copy wallet.dat file over an existing one, and you will finish the job.

BIP 39

Source: 9to5mac.com

BIP 39 is a method that allows people to generate easy to remember set of words. Thanks to that seed, you will easily determine the wallet addresses. When they create the wallet for the first time, they will get a list of random 12 to 24 words. The security will be at the highest level if you use more words.

Bitcoin wallet backup requires a different approach this time. You will have to get a piece of paper and write down the selected words in the exact order. Keep that piece of paper in a safe place. Of course, another option is to print those words. Use the most creative and safest option that you can find.

On the other hand, people that want to restore the backup should look for the “New/Restore” option in the wallet software. It is usually located in the menu. After you find it, type the words you wrote down in the exact order. That will allow you to see many things including the transaction history. Yet, you won’t manage to see contracts, transaction labels, and similar things. If you want to get them as well, you need to back up the entire data file.