Almost every bitcoin user out there with money in there bitcoin wallet will tell you the feeling they’ve had when they had that moment if they remembered to have a backup of their wallet in case of emergency.
The problem is that bitcoin users shouldn’t wait for an emergency to make sure you have backed up your wallet. Backing up your bitcoin wallet is the first and most important step to securing your funds.
One of the more popular bitcoin wallets is Blockchain.info, who recently upgraded their entire wallet platform to a Hierarchical Deterministic (HD) architecture. This design is much better than their legacy wallet as it doesn’t promote address re-use for better privacy and also, makes it super easy to backup your wallet. Simply by writing down your 12-word passphrase when you create your wallet, you can back up the wallet. The important part is to keep the passphrase some place safe.
In a blog post on the Blockchain blog, they illustrated why it’s important to backup your wallet, and how to do it using the new Blockchain HD wallet. Maybe you forget your password, or you lose your mobile device with 2-Step Verification enabled. The recovery phrase is designed to be your backup plan.