Overview
A backup plan is a strategy for recovering a wallet if keys are lost, usually via seed phrases. It ensures funds are not permanently lost. Backups must be secure and accessible.
How It Works
The seed phrase is stored securely, often in multiple offline locations. Recovery involves importing the phrase into a compatible wallet. Plans may include multi-sig or social recovery.
Why It Matters
Without a backup, lost keys mean lost funds. A solid backup plan is essential for any meaningful holding. It balances security against accessibility.
Related Concepts
Backup plans relate to Seed Phrases, Hardware Wallets, and Recovery. They prevent Permanent loss.