How to use Bitcoin wallet backup?

Wallet Security and How I Manage My Bitcoin Wallets

By A Bitcoin Enthusiast

There are many ways to manage and protect your bitcoins but here is what works for me:

I basically have two wallets – one for everyday use and one for savings. My everyday wallet is more like a checking account. I only keep enough bitcoins in this wallet for my day-to-day needs. For this “checking account” I use (not available on iPhone unless you access it through the Safari browser).

Checking Account:

Here are the “checking account” setup steps I use for my wallet that will be accessible from my laptop/desktop and Android smart phone:

1. I navigate to and set up a new wallet on my laptop following the setup steps that it asks for.
2. Next I download a backup to my computer, disconnected the internet, and copy it to 2 new USB flash drives. I then proceed to delete the backup from my computer.
3. I then store one copy of my backup in a secure location in my home, and the other copy is stored off-site (this could be at a trusted friend’s home or another secure location). This protects me in case my home burns down or is burglarized. If I wanted a backup stored online somewhere I would encrypt the file using TrueCrypt using a strong password and then storing it with an encrypted cloud storage service.
4. Next I click on “account settings” and…
5. Under “account settings” I verify my email and enable “two-factor authentication” using my cell phone (SMS) as the second factor for verification. This is important since a criminal must compromise both my computer AND my phone in order to access my wallet.
6. I turn off “automatic backups by email” because chances are good that if a criminal compromises my computer he will also gain access to my email account (by using a keystroke logger to capture my passwords) and I don’t want him being able to take a copy of this backup and “brute forcing” the password.
7. I go back to “account settings” and “security” and I make sure “always keep browser backup” is NOT checked.
8. I enter my “secret phrase” as requested
9. I check the box that says “never remember two factor login” – I want it to ask me for it EVERY TIME I log in.
10. I check the box that says “Block TOR IP Addresses” because I rarely use TOR and many criminals use TOR to conceal their tracks when hacking accounts.
11. I do not “restrict to IP” because I want to be able to access my wallet when I travel.
12. Next I go to “account settings” and then “devices” and I follow the instructions to “pair my device”. This means I use my smart phone to scan the pairing QR code so I can access my wallet from my smart phone. First, I download the Blockchain.info app from the Google Play store. I also setup and use a password for my phone and I never disable it.
13. This process is now complete and I now have a highly secure everyday wallet that I can access from my desktop/laptop and smart phone.