Backups are not needed if backups exist on the hardware, Electrum wallet

in wallet •  5 years ago 

Source: [https://www.thecryptomerchant.com/blogs/resources/how-hardware-wallets-work-and-why-they-are-secure](https://www.thecryptomerchant.com/blogs/resources/how-hardware-wallets-work-and-why-they-are-secure)
If you have a hardware device and an Electrum wallet and are wondering if you can delete your Electrum wallet files, then you have come to the right place. We will be explaining how the blockchain works naturally, and why it’s okay to delete your Electrum files assuming some information which we will clear up. If you have any questions, feel free to reach out to us, and we would be more than happy to assist you better.

Introduction

If you have any questions during this article, then comment on your issues below, and we will make sure to get back to you and better assist you. If you encounter any more Electrum problems, check out our library of stories as we have step by step guides for all common Electrum problems. This will save you a lot of time since you won’t need to contact support and wait long periods in high ticket liquidity times.
Today we will go through a scenario in which a user has a hardware wallet and Electrum wallet and wants to delete the Electrum wallet. We will discuss the factors that play in this scenario.

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Understanding the blockchain

The first thing to know about the blockchain is that private keys are the only verification of ownership to crypto. If you have your private keys, then you verifiability own the funds that are secured by the key. Wallets don’t hold any crypto but instead hold your private information and help you access your crypto that is secured on the blockchain. This is why you’re able to have the same private key on multiple wallets.

Hardware plus Electrum Wallet

If one day you decide you don’t want to use Electrum anymore and are using your Ledger or Trezor to access the wallet. Then, you can delete the Electrum wallet and not have to worry about a thing. This is possible because you have the private key associated with the Bitcoins you’re using on your hardware device. So by deleting your Electrum wallet, you’re able to maintain your crypto.

Conclusion

You’re freely able to delete crypto wallets as long as you own the private information. On Trezor or Ledger, you may never see your private key since it’s stored locally. However, you will have access to the recovery phrase, which will allow you to gain access to the crypto.
Whenever you’re using Electrum, you should remember to secure your recovery phrase safely. This phrase should be written down on a piece of paper and secured in a lockbox that is flameproof for maximum security. If your client or wallet ever crashes, you will use this sheet of paper to recover your assets. Without it, you could potentially lose all of your cryptocurrency since you own your private keys; it’s your responsibility to keep standard security.

Hardware wallets are recommended to use with Electrum because your device will store the private key information locally on the hardware. A device like Ledger can complete cryptographic hashing to verify the key without sending it over the internet.

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