As the fiat currency is getting replaced by digital money, the importance of mobile devices is increasing, and backup of all the data and transactions done gains a key position in the life of every crypto dealer/investor. Sometimes the device you are saving the data on might suffer from the technical issue and create an unwanted emergency. But, there is a solution to that.
If you own a bitcoin, it is essential to back up your key seed in order in order to restore the funds. Here is how you can transfer and store a bitcoin mobile phone wallet on a new device using a key seed phrase. Most of the crypto wallets make use of seed phrase to restore the secret key associated which is the private key which helps in preventing the wallet from getting damaged or lost or stolen.
A mnemonic seed which is also called as seed or key seed is nothing but a list of words which are if brought together in a specific order would disclose the private, secret key. Let us take an example of Bitcoin.com wallet! After activating the wallet and inserting some BCH, the user will notice that the wallet pops up a message suggesting he backup of the seed. The user can follow the link given in the message to complete the required procedure of backing up the seed. The wallet will display a 12 digit phrase which you have to write down and fill it manually in the given box. After confirming the seed phrase, the wallet will resolve the warning.
Now imagine that you have been using the wallet and holding BCH for a few weeks and have lost the phone on which it was installed. Now, as you keep funds in that, you will start worrying and finding ways to get the funds back. All you have to do is, find another mobile device which supports Bitcoin.com wallet and installs the wallet on the new mobile; then activate the same account on the new device, and you will be ready to start again.
Once you install the wallet on a new device, the wallet will ask whether you want to start a new account/wallet or import the existing one. Select the second option so that the wallet restores the data and funds of your existing already wallet. The wallet would ask for 12 digit seed before importing the data.
But, sometimes, the process might not work in the first attempt; in that case, there is a possibility that you have typed the ey phrase wrong. This process assures cryptocurrency holders that they can always restore their data and funds if the wallet service provider goes out of business or stops giving updates.
Crypto market is anyway volatile, plus the digital form of money comes with cybersecurity risks and hacks. Mobile devices get damaged or stolen; risks are many and hence having a backup not just in case of digital money but in case of every online transaction made is very crucial. Many times, people have lost their funds in similar accidents since the introduction of crypto money.
Chainalysis recently reported that 23 percent of BTC in the market is lost so far. However, though the warnings are not baseless, there is always a way to protect yourself and your funds from getting affected; and the mentioned way of taking a backup is one of them. Crypto holders have to play it smart and know the risks involved before taking any step.
As we all know, Bitcoin is the most sought-after crypto. As more countries are now adopting bitcoin & removing the crypto ban, the number of Bitcoin Wallet App increases in the market. Do your research and Choose among the Best Bitcoin Wallet while you are dealing with it.