Crypto 101 · Security
Crypto Backups and Wallet Recovery: A Practical Guide
Abstract
With a non-custodial wallet the backup is the only safety net. We explain the layers available in Scrypt Wallet, a 12-word recovery phrase, individual coin keys, a passkey backup and a memory hint, how to test them, what recovery looks like when you lose a device, and the limits: nobody at Scrypt can recover keys you never saved.
Keywords: wallet recovery, backup, recovery phrase, lost phone, self-custody
1. The one rule
In a non-custodial wallet, the backup is the wallet. The phone is only a container. If the phone is lost, broken or wiped and you have no backup, the coins are unreachable for everyone, including the company that made the app. That is the price of nobody else being able to freeze your money [1].
2. The layers you can use
Table 1. Recovery options in Scrypt Wallet. Use more than one.
| Option | What it is | Good for |
|---|---|---|
| 12-word recovery phrase | One phrase that can restore every coin | The main offline backup |
| Individual coin keys | The key for a single coin, saved separately | Restoring one coin, or adding coins one by one |
| Passkey backup | A passkey-protected copy that can restore access | Recovering on a new device without typing a phrase |
| Memory hint | A short private reminder of where you stored the phrase | A nudge, never the phrase itself |
3. Go deeper: what a recovery phrase does
A phrase in the BIP-39 format encodes the randomness from which a wallet derives its keys, so restoring the phrase restores the keys, and therefore the coins [2, 3]. Coin keys work per coin: with the key for a coin you can restore that coin's wallet without needing the others.
4. A recovery drill
1. Write the recovery phrase on paper and store it offline. 2. Export and save the key for any coin holding meaningful value. 3. Install the app on a spare device and restore with a small balance. 4. Confirm the balance and address match, then wipe the spare device. 5. Repeat after any major change, such as adding a new coin.
5. If something goes wrong
- Lost phone: restore on a new device with your phrase, coin keys or passkey backup.
- Only some keys saved: you can restore those coins and create new addresses for the rest; funds at addresses whose keys you did not keep cannot be moved.
- Suspected exposure: move funds to a fresh wallet with a new phrase, then investigate.
- Someone offers to "recover" your wallet for a fee: this is a common scam [4].
6. In Scrypt Wallet
Open the Keys tab to view or export each key and your recovery phrase after unlocking, and to add keys you saved elsewhere. Pair it with a PIN and passkey for everyday protection.
References
- Bitcoin Project (2020). Wallets, Bitcoin Developer Guide. Explains that wallets store the private keys used to spend coins and how they are backed up. https://developer.bitcoin.org/devguide/wallets.html
- Palatinus, M., Rusnak, P., Voisine, A., & Bowe, S. (2013). BIP-39: Mnemonic code for generating deterministic keys. Bitcoin Improvement Proposal defining how a list of words encodes the entropy behind a wallet's keys. https://github.com/bitcoin/bips/blob/master/bip-0039.mediawiki
- Bitcoin Wiki contributors (2018). Seed phrase. Bitcoin Wiki: what a seed (recovery) phrase is and how it is used. https://en.bitcoin.it/wiki/Seed_phrase
- U.S. Federal Trade Commission (2023). What To Know About Cryptocurrency and Scams. Consumer guidance: only scammers demand payment in cryptocurrency or guarantee returns; crypto payments are typically not reversible. https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-scams
Common questions
What if I lose my phone?
Install the app on a new device and restore with your recovery phrase, your individual coin keys or a passkey backup. Without a saved backup, no one can recover your keys.
Can Scrypt recover my wallet for me?
No. Your keys are created and encrypted on your device, so Scrypt cannot recover keys you did not save.
General education, not financial, tax or legal advice. Figures are schematic. Protocol parameters are cited to primary sources and can change; verify against the linked source before relying on them.