Wallet backup basics
Before you create a backup for your Bitcoin Wallet, make sure to understand what you are doing by reading this section.
The most important job of a Bitcoin Wallet is generating and managing cryptographic private keys which allow you to control your Bitcoin. The keys are generated and stored on the device itself.
Creating a backup means exporting these keys from the device and making a physical copy of them.
If the device on which your BItcoin private keys are stored is lost, broken, stolen or otherwise inaccessible, you can import the physical backup into a new device and your Bitcoin will be recovered there.
A Bitcoin backup consists of a series of 24 words generated randomly by the Coldcard’s secure element.
Example of a 24-word backup, PIN and anti-phishing words.
These words, in combination with your passphrase, allow you to recover access to the keys of your Bitcoin wallet in case you lose them.
- 1.If you do not have a backup and you lose access to the Coldcard, you will lose access to the Bitcoin permanently.
- 2.If you have a backup but you forgot the passphrase, you will lose access to the Bitcoin permanently.
- 3.If someone finds the backup of your wallet, they cannot steal your money unless they also know your passphrase.
- 4.Never store your passphrase in the same place as your backup. If someone finds the backup and they also know your passphrase, they will be able to take your bitcoin.
Scenarios where you can lose your funds.