Hi
i was just reading this guide about storing XEM ( How to Store Your XEM Securely ) and have some questions about backups. Could you please help?
It says, “We recommend to do backups to a file AND to paper!” It recommends encrypting the file using a tool like Truecrypt, but that tool seems to be discontinued and only for PC. I’ve never used encription software before and i don’t understand why i would store the wallet backup on both file and paper. Wouldn’t storing it in just paper(s) be sufficient?
Why would i want to store the file on my computer(s) in addition? Doesn’t that make it easier to hack/steal than wriitng it on paper?
Or is there an important reason to backup on computer that i am just missing? If so, Does anybody know of a good encryption software for mac that is trustworthy to use for this?
Thank you
Edit:
I just realized that the guide recommends backing up the wallet file on the computer but only the private key on paper. Does this help explain why its recommended to backup both ways?
I think that i’m now understanding that this might be useful because it allows you to quickly restore wallets that have been purged from your system using easier to remember password(s), but still offers a decent amount of security because an attacker would need both to have the files (which should be kept on multiple local computer or hard drives) and know the password (in addiiton to a second password to decrypt the file, right?).
I still am not sure about it because it putting the files on computer could still mean that a theif/hacker could steal the funds from the computer if they got the passwords and the files on the computer, but i can imagine that it may also be more secure than solely using the paper wallet with the private key to frequently restore backups because it will allow me to store the private key in the safest place and be less likely to be lost/damaged/left out/etc because it is used less often.
Does this make sense? Am i thinking about it in the right way or is am i misunderstanding anything? Sorry for the long, just figuring this out as i go and sharing the thought process. Thanks for your help!