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Backup Verification Guide

What You'll Do

In this guide, you will:

  • Understand why backup verification is critical
  • Learn safe methods to test your backup
  • Perform a complete recovery test
  • Verify your backup without risking funds

Time required: 30-60 minutes
Difficulty: Beginner
Estimated cost: Free
Prerequisites: A seed phrase backup to test

Why This Matters

Thousands of Bitcoin have been lost because people assumed their backup was correct without testing it. A single wrong word, a smudged letter, or a misread character can make your backup useless.

Test your backup BEFORE depositing significant funds.

The Problem​

Most people set up their wallet like this:

  1. ✅ Generate seed phrase
  2. ✅ Write down seed phrase
  3. ✅ Device confirms words are correct
  4. ❌ Assume backup works forever
  5. 💀 Years later, need to recover... backup doesn't work

What can go wrong:

  • Handwriting is illegible
  • A word was misspelled
  • Words are in wrong order
  • Paper degraded or got wet
  • Metal stamp is unclear
  • Wrong word list was used
  • Passphrase was forgotten

The Solution: Test Your Recovery​

The only way to know your backup works is to actually use it to recover your wallet. This guide shows you how to do this safely.

Method 1: Recovery Test on the Same Device​

The simplest method — reset your device and recover using your backup.

When to Use This Method​

  • You have a hardware wallet
  • You haven't deposited any funds yet
  • You want to verify before your first deposit

Step-by-Step Process​

1. Verify you have your seed backup ready

Before doing anything, confirm you have your written seed phrase in hand.

2. Check your wallet is empty

Make sure there are no funds in the wallet. If there are funds, use Method 2 instead.

3. Reset your device to factory settings

Each device has a different process:

DeviceHow to Reset
ColdcardSettings → Danger Zone → Seed Functions → Destroy Seed
TrezorSettings → Device → Factory Reset
LedgerSettings → Security → Reset Device
KeystoneSettings → Wallet → Delete All Data
BitBox02Device Settings → Reset Device

4. Recover using your seed backup

  • Start the device as if it were new
  • Choose "Recover wallet" or "Import existing wallet"
  • Enter your seed words exactly as written on your backup
  • If you used a passphrase, enter that too

5. Verify the recovery succeeded

Connect to your wallet software and verify:

  • The wallet loads correctly
  • The first receive address matches what you had before
Pro Tip

Before resetting, write down your first receive address. After recovery, verify this address matches exactly. If it matches, your backup is correct.

Method 2: Recovery Test on a Different Device​

More thorough — verify your backup works on independent hardware.

When to Use This Method​

  • You already have funds in your wallet
  • You want extra confidence
  • You have access to a second device

Step-by-Step Process​

1. Get a second device or use software wallet temporarily

Options:

  • A second hardware wallet (same or different brand)
  • A software wallet on an air-gapped device (for testing only)
  • Sparrow Wallet in watch-only mode + seed verification tool

2. Recover on the second device

Enter your seed phrase (and passphrase if applicable) on the second device.

3. Compare addresses

The recovered wallet should show the same addresses as your original:

VERIFICATION CHECK:
─────────────────────────────────────────────────────────
Original Wallet          Recovered Wallet
────────────────         ────────────────
First address:           First address:
bc1qxy2...abc     =?     bc1qxy2...abc

If they match → ✅ Backup is correct
If different → ❌ Something is wrong

4. Delete the test wallet

After verification, securely delete the recovered wallet from the second device:

  • Factory reset hardware wallet, or
  • Securely delete software wallet data

Method 3: Address Verification (No Recovery Needed)​

Verify your backup mathematically without fully recovering.

When to Use This Method​

  • You want to verify without entering your seed anywhere
  • You have technical comfort with command line
  • You want to verify periodically without a full recovery

Using Ian Coleman's BIP39 Tool (Offline)​

Security Warning

Only use this tool on an air-gapped computer that will never connect to the internet. Never enter your real seed phrase on an internet-connected device.

1. Download the tool

Download from: https://github.com/iancoleman/bip39

2. Transfer to air-gapped computer

Use a USB drive to move the HTML file to your offline computer.

3. Open in browser (offline)

Open the HTML file in a browser with NO internet connection.

4. Enter your seed phrase

Type your seed words into the tool.

5. Compare derived addresses

The tool shows addresses derived from your seed. Compare the first several with your actual wallet addresses.

If they match → Your seed backup is correct If they don't match → Check for errors in your seed, passphrase, or derivation path

Method 4: Using Sparrow Wallet's Verification​

Sparrow Wallet can verify your backup matches your wallet.

Step-by-Step Process​

1. Open Sparrow and connect your hardware wallet

2. Go to Settings → Keystore

3. Click "Test Backup..."

4. Enter your seed phrase

Sparrow will verify the seed matches the connected wallet without exposing your keys.

Verifying Passphrase Backups​

If you use a passphrase (25th word), you must verify that too:

The Challenge​

A passphrase creates a completely different wallet. Even a tiny difference (capitalization, extra space) generates different addresses.

Verification Process​

  1. Recover with seed phrase ONLY (no passphrase)
  2. Note the first address — this is the "decoy" wallet
  3. Now add your passphrase
  4. Note the first address — this is your real wallet
  5. Verify this matches your actual wallet
PASSPHRASE VERIFICATION:
─────────────────────────────────────────────────────────
Seed only:          seed + "MyPassphrase":
bc1q111...xxx       bc1q222...yyy
(decoy wallet)      (your real wallet)

Both should be derivable from your backup.

Common Passphrase Mistakes​

  • Forgetting capitalization: "Bitcoin" ≠ "bitcoin"
  • Extra spaces: "my phrase" ≠ "my phrase "
  • Similar characters: "0" (zero) ≠ "O" (letter)
  • Forgetting you used one at all

How Often to Verify​

SituationRecommended Action
New wallet setupVerify immediately before depositing
After creating metal backupVerify the metal backup specifically
Every 6-12 monthsQuick verification that backup is readable
Before major life changesFull recovery test
After any backup modificationFull verification

Signs Your Backup May Be Compromised​

Perform a full recovery test if:

  • Your backup was exposed to water, fire, or heat
  • Paper is yellowing or ink is fading
  • You can't read your handwriting clearly
  • Metal stamps are unclear or corroded
  • You found your backup wasn't stored securely
  • You suspect someone may have seen it

What If Verification Fails?​

If addresses don't match:​

1. Check for simple errors

  • Did you enter all words?
  • Are words spelled correctly?
  • Are words in the right order?
  • Did you use the correct passphrase?
  • Is the passphrase entered exactly right (caps, spaces)?

2. Check derivation path Different wallet software may use different paths:

  • BIP84 (bc1q...): m/84'/0'/0' — Most common for SegWit
  • BIP49 (3...): m/49'/0'/0' — Older SegWit
  • BIP44 (1...): m/44'/0'/0' — Legacy

3. Check word list Make sure you're using the English BIP39 word list. Other languages have different words.

If you find an error:​

1. Don't panic Your original wallet still works. The error is in your backup, not your wallet.

2. Create a new backup While your wallet is still accessible:

  • Display the seed phrase on your hardware wallet
  • Create a fresh, correct backup
  • Verify the new backup immediately

3. Consider creating a new wallet If your backup was wrong, it may have been compromised. Consider:

  • Generating a new seed
  • Moving funds to the new wallet
  • Properly backing up the new seed

Backup Verification Checklist​

Before trusting your backup with significant funds:

  • Seed phrase is readable and legible
  • All 12/24 words are present
  • Words are spelled correctly
  • Words are in correct order
  • Successfully recovered wallet on test device
  • First receive address matches original wallet
  • Passphrase verified (if applicable)
  • Backup stored securely after verification

Summary​

Verification is not optional — it's a critical part of self-custody.

The process is simple:

  1. Reset or use a second device
  2. Recover using only your backup
  3. Confirm addresses match
  4. Repeat periodically

Taking 30 minutes to verify your backup can save you from losing everything.

Next Steps​

Now that your backup is verified:

  1. Run Your Own Node — Maximum privacy and verification
  2. Learn UTXO Management — Manage your coins effectively
  3. Consider Multisig — Eliminate single points of failure