The idea behind hardware backup options is that you need the recovery seed phrase to restore access. When you set up a hardware wallet for the first time, you are given recovery seeds that are like a password used to access your cryptocurrency wallet. People are usually worried that passwords can be easily forgotten or misplaced, or that if any unauthorized person has access to them, they can access your funds.

It’s true that even the most organized people can easily forget where they stored a piece of paper after some time. A hardware crypto backup could be a solution to these potential issues.

How does setting up a hardware backup work?

There are more and more services out there to help you keep your hardware wallet backed up, and most of them rely on heavy metal boxes containing a toolkit to help you engrave your recovery seed phrases on metal plates.

These boxes are designed to be very resistant to extreme conditions such as fire, cold, floods, corrosion and even force. They are usually heavy as well, but under 10kg. If you purchase one, you have to make sure to find a suitable and safe place to store them, because they could still be stolen in case of a burglary.

Are these backup options compatible with a hardware wallet?

Of course, they have to be compatible with hardware wallets because that’s what they are backing up, but you have to take into consideration the fact that particular backups are compatible with particular wallets. It’s not a “one size fits all” type of thing, so do a lot of research into the services you wish to use before signing up.

Are there any safe online backup options?

Of course, as we mentioned, you can back your wallet up with seed phrases. These are words used to calculate your private keys. You have the option of exporting your wallet address and keys directly to a text file, if you don’t mind random strings of data.

There are services specifically for backing up your online wallets. For example, BitGo is a possible solution for this. It can store digital currency and, according to their website, it has the ability to process high-volume cryptocurrency transactions and payments.

Even though metal boxes can withstand a house fire for example, an online backup can withstand one just as well, because if your main device is damaged, your assets can always be recovered from any other device.

It all depends on what you actually want from a backup option. What you have to take away is that there are many online solutions as well, which don’t require heavy boxes or much work on your part.

Backup options are not mandatory if your have a secure wallet

Most exchange platforms do their best to offer security. The truth is that most breaches take place due to the users sharing information with unreliable sources, not because the platform’s security is too low. So, the key is making sure that you take all the necessary security precautions and that you choose a trustworthy online wallet.

The IXFI Wallet

As long as the service you choose stays up to date with the latest security technologies, online backup methods can be very safe and a lot less troublesome than hardware ones. That’s why you should consider IXFI as a possible solution for this particular issue.

We are working to create a wallet that’s not only safe, but one that can support over 500 currencies, without compromising its security. We have put in place a KYC system, Anti-Phishing Codes, and Block Verification for every withdrawal, in order to ensure that your funds are completely protected.

So, are you the type to look for physical backup solutions, or are you looking for a secure online wallet?

If it’s the latter and you don’t feel like carrying a heavy titanium box around, you can rely on IXFI to offer you the most secure system where you can store and trade your crypto, without any worries.

Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.

Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.

Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.