If you’ve acquired bitcoin, it’s likely that you wish to manage it yourself. Without self-management, you don’t genuinely possess bitcoin, so why wouldn’t you? Setting up an offline bitcoin wallet using a hardware device is generally advised. However, backing up your wallet is significantly more critical than merely having a hardware wallet. Nonetheless, bitcoin backups are frequently overlooked as an afterthought.
We will now explore why backing up your bitcoin wallet is vital, and more importantly, how to effectively do it with the appropriate tools to safeguard your bitcoin assets for generations without relying on trusted intermediaries.
Backup First
If you don’t self-manage and depend on a trusted intermediary like an exchange, custodian, or broker, you might have valid reasons for this, but it could be wiser to consider possessing your own keys. As the saying goes, not your keys, not your…
Of course, if you only possess $10 or $50 worth of bitcoin in self-management, backing up your wallet may not seem pertinent at this moment. However, if, for instance, you hold an entire month’s salary, a year’s worth of savings, or even more than 5% of your net worth, then a backup might be absolutely essential to secure your bitcoin assets.
You should back up your bitcoin because electronic devices and hardware can fail. This isn’t exclusive to bitcoin or intended to disparage hardware wallet manufacturers. Rather, hardware wallets share similarities with other common consumer electronics like computers and USB drives in that they can malfunction over time due to various life hazards.
Holding multiple keys in a multisig wallet may help lessen the risk of hardware failure, but is that sufficient for you to feel secure for the next 30 years? If not, continue reading. Paper backups usually come included when purchasing a hardware wallet, but, well, they are still paper. Paper is susceptible to loss, destruction, misplacement, ink fading, and other issues. Relying on paper for your backup is not advisable. It is unwise to store highly sensitive and potentially extremely valuable data on paper for prolonged periods.
Medium of Storage
Throughout the years, since Cryptosteel revealed the world’s first metal backup in 2013, many formats of bitcoin metal backups have emerged from various vendors. Which one is currently preferred? Is there a superior format among cassettes, tiles, plates, punch cards, and others?
First and foremost, ensure your backup is crafted from high-grade stainless steel, which is extremely durable. Titanium options may also be a favorable alternative. Any other storage medium used by existing manufacturers or recommended by free DIY alternatives may be more delicate and susceptible to total data loss in the event of fire or other corrosive dangers (like aluminum).
Formats also exist in various forms, including flat cassettes with movable tiles, punched metal cards, ring tiles affixed to a core, punchable tubes, punchable rings threaded onto a core, among others. So, which one stands out as the best and why?
We must identify the needs of someone who is backing up their bitcoin seed phrase. The most vital aspect is that it should be straightforward. Some might argue that it’s not the priority, but it truly is. If the process is complicated or inconvenient, then few individuals will execute it correctly, while many others may struggle to complete a successful backup. Naturally, a solid bitcoin backup should be durable, recoverable, reasonably priced, and private, but these should almost be basic criteria for any product.
Anatomy of a Good Backup
We cannot initiate this discussion without referencing Lopp’s thorough technical overview of what constitutes a good seed phrase backup, based on his previous studies assessing various models of metal bitcoin backups. The following examination resembles an opinionated perspective on metal bitcoin backups as of 2024, emphasizing usability, security, and durability.
A straightforward method to back up your bitcoin should not necessitate any additional tools. This is the best way to maintain simplicity for anyone aiming to securely back up their bitcoin assets. Not requiring tools also enhances safety, eliminating the risk of harm from improper usage of tools. It is also more discreet and enjoyable since there shouldn’t be any noise from the backup process. A broader audience can back up their assets if it does not involve specialized equipment, such as sharp items, hammers, anvils, or punches.
Clearly, your backup needs to be sturdy. That’s the entire purpose. We’ve established that stainless steel is the optimal alloy to depend on. But what about the format? Over the years, we’ve encountered various shapes of backups. What matters is that the format withstands life hazards, including fire, floods, intense weight pressure, and drastic alterations in any of these conditions. We are concerned about tangible life threats such as floods, hurricanes, and residential fires, which can produce extreme temperatures and result in buildings collapsing.
Backup format options usually fit into six categories for recording data: sliding, stamping, engraving, etching, punching, and stacking.
Sliding
Launched in 2013 by Cryptosteel, the sliding backup design is a rail-based device that allows you to slide tiles, such as the Cassette by Cryptosteel, Simbit, or Billfodl. These are relatively simple to set up, requiring no specialized tools, and are resistant to most threats including corrosion from acid, heat from fire, and water damage from floods. However, this design may carry risks of partial or complete data loss if the medium becomes bent or twisted under excessive weight pressure.
Vendor Reviews: Cryptosteel Cassette, Simbit, Ellipal Mnemonic Metal, Bunkeroid, HODL Wallet (discontinued), Billfodl (discontinued), Steeldisk (discontinued)
Engraving
Similar to stamping, engraving doesn’t strictly require stamps, as it can be performed with various sharp tools to permanently inscribe on metal, such as Dremel tools, small chisels, and gravers. Engraving can indeed be applied to numerous metal backup formats, but it mandates even more specialized tools and safety measures to prevent injuries compared to stamping.
Vendor Reviews: SteelWallet (DIY), Steelki, CryptoVault (discontinued), Crypto Key Stack (discontinued)
Etching
Etching is employed to mark metal backups through the corrosive action of acid or electrochemical processes. This method is likely the least favored technique for marking metal backups, yet it is usually available as an option with vendors that utilize engraving for imprinting a backup in metal. Etching relies on highly specialized tools and is hazardous due to the dangerous chemicals involved.
Vendor Reviews: Steelki,Black Seed Ink, Cryptoetch (no longer available), SteelWallet (DIY), CryptoVault (no longer available), Crypto Key Stack (no longer available)
Stamping
Often regarded as the most prevalent method in both commercial and DIY options, stamping serves as a technique to imprint metal backups of various designs, ranging from plates to hexagonal tubes, fender washers, and rings. Stamping demands intermediate to advanced technical expertise, as it involves the use of tools, including hammers, stamps, and optional jigs and guiding rails to guarantee that stamping is safely performed with the precise alignment of letters. For safety, it’s generally advised to wear protective gear for your eyes and fingers.
Vendor Assessments: Coldbit, DIY BulletProof Bitcoin, Crypto Keys (no longer available), Hodlinox (no longer available), SAFU Ninja (DIY), Safe Seed, Seedor, Cryptotag
Punching
Like stamping, punching requires medium to advanced technical skills, as specialized tools like punches and hammers are utilized for permanent markings on metal. It is also quite popular, much like stamping, requiring merely a single shape to punch rather than multiple distinct stamps. This method is typically performed on metal plates with grids and hexagonal tubular forms. Accurately marking metal through punching can be challenging without making mistakes, and reading the information may also complicate recovery efforts. It’s usually advisable to wear protective gear for your eyes and fingers for safety.
Vendor Assessments: Blockplate, Seedplate, Smallseed, Attenuo (no longer available), Steelwallet, Coldkeys S, Bitplate Domino
Stacking
Among the least common commercial offerings, and potentially the most undervalued formats, is stacking tiles and other ring components, like fender washers. This configuration is accessible for beginners with minimal technical expertise, as well as DIY aficionados. The arrangement and integrity of seed phrases are essential for recovery, hence this design must include reliable cotter-pins functioning as closure and retention clips, or should have each word numbered. Besides that, assembling these products generally requires no tools, except in DIY scenarios combining the “stacking” design with “stamping,” for example.
Vendor Assessments: Cryptosteel Capsule, Cryptosteel Seed12, SAFU Ninja DIY
Additional Considerations
Affordability
How much does a backup expense? The cost at which a bitcoin backup item is sold is a significant factor for numerous consumers. This holds true for hardware wallet manufacturers who might contemplate bundling their devices with backup tools. A price below $50 is seen as reasonable. Anything exceeding $100 is classified as high-end, while the most common pricing usually falls within the $50-100 range.
Erasability
Can mistakes be made and rectified without rendering the backup invalid? Very few backup formats allow for editing and erasing. This can be advantageous for correcting errors, reusing backups with new seed phrases, and for educational purposes. Additionally, it’s beneficial to dispose of a seed phrase backup discreetly without exposing sensitive data. Typically, the “stacking” model is the only format that can erase a backup.
Tamper-Evidence
Is it apparent if someone has viewed or duplicated a backup? Indicating that a backup has been accessed by a third party is a crucial feature for those concerned about the “evil maid attack.” Typically, tamper-evident seals are DIY and are not integrated into the backup design. Very few backups feature such seals as part of the core product, yet it serves as a valuable privacy and security enhancement.
Compactness
How small is a backup in size to facilitate easy concealment? The dimensions of a backup are significant for hiding it in a secure location while also considering durability. A small and compact backup is less susceptible to bending under excessive weight pressure.
Seed12 as a Suggested Backup
Based on the preceding discussion, our recommended bitcoin self-custody backup for December 2024 is the Seed12 by Cryptosteel. Assemble your backup by threading character tiles onto the core, encapsulating them in an optional protective capsule and a tamper-proof seal.
- Affordable: Priced at $30 for the Seed12 Core and $59 for the Seed12 Security Kit, they are competitively priced against other commercial backups. Naturally, DIY options remain more budget-friendly for those with tight finances.
- Durable: Constructed from high-quality stainless steel, the Seed12 offers exceptional resistance to impact, flooding, and heat.
- Compact: Packaged in a matchbox-sized container.
- No tools: This backup system requires no tools, such as hammers or sharp punches, making setup straightforward and safe.
- Erasable: As one of the most compact backup kits ever created, it is also erasable and reusable, designed with a modular tile system for effortless error correction.
- Flexible: Consumers can buy additional components and pay only for what they need, such as extra tiles, capsules, or tamper-proof seals.
The Right Conditions to Backup
Having discussed most facets and factors that contribute to a good bitcoin backup, let’s briefly review how and where to actually set it up. When configuring your bitcoin backup, ensure the following:
- Secure Environment: Select a private, distraction-free area to establish your backup free from the risk of being overheard or watched.
- Backup Location: Store in a secure, fire-resistant, and waterproof location, such as a home safe or a safety deposit box for added protection.
- Redundancy: Create multiple backups and place them in geographically diverse locations.
- Privacy Measures: Utilize tamper-evident seals or concealment strategies to detect or prevent unauthorized access.
- Documentation: Clearly label backups and draft a documented plan to aid yourself and trusted individuals in recovering your bitcoin with your backups.
- Regular Checks: Frequently verify the condition and accessibility of the backup while ensuring it remains private and easy to use for bitcoin recovery.
If you possess bitcoin in self-custody, a reliable backup is essential. Backing up your bitcoin is not merely a precaution—it’s crucial for safeguarding your holdings long-term. By utilizing appropriate materials like stainless steel or titanium, paired with meticulous attention to format, usability, and durability, you can ensure your backup endures life’s obstacles. Whether you choose sliding, stamping, punching, or stacking designs, focus on simplicity and reliability. By adhering to proper setup conditions and selecting high-quality products designed for longevity, you can secure your bitcoin for future generations without depending on third parties.
This is a guest post by Thibaud. The views expressed are solely theirs and do not necessarily represent those of BTC Inc or Bitcoin Magazine.
