Most people think they’ve backed up their crypto wallet. Most people are wrong. A single handwritten note in a kitchen drawer is not a backup strategy — it’s a single point of failure waiting to become a tragedy.
The 3-2-1 Backup Rule for Crypto
Keep at least 3 copies of your seed phrase, on at least 2 different materials, with at least 1 stored off-site. Three copies sounds like overkill until the day your house floods and your only copy is ruined.
Format Matters: Paper vs. Metal
Paper is the starting point, not the final destination. It burns at around 230°C, disintegrates in water, and fades over time. Metal — specifically engraved or stamped steel — survives house fires, floods, and decades of storage.
Location Matters: Never Keep Everything in One Place
Your home can flood, burn, or be burglarized. A second location — a trusted family member’s safe, a bank safety deposit box — provides the redundancy that makes your backup system real.
What to Include in Each Backup
Each backup should include the seed phrase in the correct order, a note identifying which wallet it belongs to, and the wallet type. Without context, even a correct seed phrase may be confusing for someone who finds it years later.
What Never to Include in a Backup
Never write the passphrase (25th word) in the same location as your seed phrase. If someone finds your seed phrase, the passphrase stored separately is your last line of defense.
Test Your Backup Before You Need It
Once a year, go through the motions of recovery with a small test wallet. A backup you’ve never tested is a backup you cannot trust.
— Lior H