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guide/case-studies/savings-account.md

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caption: Overview of the key setup process.
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- file: onboarding/key-1-intro
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alt:
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caption: Explanation of how Key 1 is set up. More on [automatic cloud backup](/guide/onboarding/backing-up-a-recovery-phrase/automatic-cloud-backup/).
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caption: Explanation of how Key 1 is set up. More on [automatic cloud backup](/guide/onboarding/backing-up-a-wallet/cloud-backup/).
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- file: onboarding/key-1-service
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alt:
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caption: Choice of cloud storage provider.

guide/designing-products/principles.md

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Self-custody often leaves the end-user responsible for the security of their private keys. They can only do a good job of that if we provide them with appropriate tools and awareness of best practices.
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Security is especially important when onboarding people who are new to Bitcoin. For example, new users are likely to start by only storing small amounts. After a while, they may become more comfortable with the idea of self-custody and begin to store larger amounts. The concept of progressive security is a good idea here, starting with [automatic cloud backups]({{'/guide/onboarding/backing-up-a-recovery-phrase/automatic-cloud-backup/' | relative_url}}). This would let a user upgrade their security and private key management scheme as their savings grow. Although common, recovery phrases that require [manual backup]({{'/guide/onboarding/backing-up-a-recovery-phrase/manual-backup/' | relative_url}}) might backfire for new users not yet familiar with safe backup practices.
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Security is especially important when onboarding people who are new to Bitcoin. For example, new users are likely to start by only storing small amounts. After a while, they may become more comfortable with the idea of self-custody and begin to store larger amounts. The concept of progressive security is a good idea here, starting with [automatic cloud backups]({{'/guide/onboarding/backing-up-a-wallet/cloud-backup/' | relative_url}}). This would let a user upgrade their security and private key management scheme as their savings grow. Although common, recovery phrases that require [manual backup]({{'/guide/onboarding/backing-up-a-wallet/manual-backup/' | relative_url}}) might backfire for new users not yet familiar with safe backup practices.
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Education and awareness are a big part of security, as they can protect users from bad actors and potentially their own security mistakes. It is unrealistic to expect beginners to take in all the knowledge acquired by advanced users in one go, for example, while [onboarding]({{ '/guide/onboarding/introduction/' | relative_url }}) to a Bitcoin product. We should therefore consider how to continuously educate and level up user awareness of best practices and risks.
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guide/onboarding/backing-up-a-recovery-phrase.md renamed to guide/onboarding/backing-up-a-wallet.md

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---
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layout: guide
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title: Backing up a recovery phrase
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title: Backing up a wallet
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description: Handling recovery phrases during onboarding.
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parent: Onboarding
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has_children: true
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nav_order: 2
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permalink: /guide/onboarding/backing-up-a-recovery-phrase/
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permalink: /guide/onboarding/backing-up-a-wallet/
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main_classes: -no-top-padding
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image: https://bitcoin.design/assets/images/guide/onboarding/backing-up-a-recovery-phrase/backing-up-a-recovery-phrase-preview.png
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---
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The next sections will look at some UI considerations for [cloud backups]({{ '/guide/onboarding/backing-up-a-recovery-phrase/automatic-cloud-backup' | relative_url }}) and [manual backups]({{ 'guide/onboarding/backing-up-a-recovery-phrase/manual-backup/' | relative_url }}).
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The next sections will look at some UI considerations for [cloud backups]({{ '/guide/onboarding/backing-up-a-wallet/cloud-backup' | relative_url }}) and [manual backups]({{ 'guide/onboarding/backing-up-a-wallet/manual-backup/' | relative_url }}).
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{% include next-previous.html
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previousUrl = "/guide/onboarding/first-use/"
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previousName = "First use"
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nextUrl = "/guide/onboarding/backing-up-a-recovery-phrase/automatic-cloud-backup/"
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nextUrl = "/guide/onboarding/backing-up-a-wallet/cloud-backup/"
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nextName = "Automatic cloud backups"
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%}

guide/onboarding/automatic-cloud-backup.md renamed to guide/onboarding/cloud-backup.md

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title: Cloud backup
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description: How to backup bitcoin wallet data via cloud storage service providers.
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grand_parent: Onboarding
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parent: Backing up a recovery phrase
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parent: Backing up a wallet
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nav_order: 1
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permalink: /guide/onboarding/backing-up-a-recovery-phrase/automatic-cloud-backup/
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permalink: /guide/onboarding/backing-up-a-wallet/cloud-backup/
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main_classes: -no-top-padding
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image: https://bitcoin.design/assets/images/guide/onboarding/backing-up-a-recovery-phrase/backing-up-a-recovery-phrase-preview.png
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---
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In the next section we will show different methods for [manual backups]({{ '/guide/onboarding/backing-up-a-recovery-phrase/manual-backup/' | relative_url }}).
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In the next section we will show different methods for [manual backups]({{ '/guide/onboarding/backing-up-a-wallet/manual-backup/' | relative_url }}).
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{% include next-previous.html
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previousUrl = "/guide/onboarding/backing-up-a-recovery-phrase/"
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previousUrl = "/guide/onboarding/backing-up-a-wallet/"
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previousName = "Backing up a recovery phrase"
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nextUrl = "/guide/onboarding/backing-up-a-recovery-phrase/manual-backup/"
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nextUrl = "/guide/onboarding/backing-up-a-wallet/manual-backup/"
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nextName = "Manual backups"
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%}

guide/onboarding/first-use.md

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- [Create a new wallet](/guide/onboarding/first-use/#creating-a-wallet), or
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- [Restore an existing wallet](/guide/onboarding/restoring-a-wallet/)
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- [Backup a wallet](/guide/onboarding/backing-up-a-recovery-phrase/)
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- [Backup a wallet](/guide/onboarding/backing-up-a-wallet/)
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- [Fund a wallet](/guide/onboarding/funding-a-wallet/)
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While the first two, creating or restoring a wallet, normally need to be tackled straight away, the last two can be designed to fit the flow and capability of your application.
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### Creating a wallet
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[Bitcoin wallets]({{ 'guide/glossary/#wallet' | relative_url }}) contain the private keys to a user’s bitcoin. Private keys let users access bitcoin associated with those keys. If the user does not have a Bitcoin wallet already that they want to restore, it is necessary to create a new one.
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[Bitcoin wallets]({{ 'guide/glossary/#wallet' | relative_url }}) contain the private keys to a user’s bitcoin. Private keys let users access bitcoin associated with those keys. If the user does not have a Bitcoin wallet already that they want to restore, it is necessary to create a new one.
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Like regular keys on a keychain, Bitcoin private keys can be copied. This makes [private key management]({{ '/guide/private-key-management/introduction' | relative_url }}) one of the most important considerations of any bitcoin owner. Bitcoin wallet applications should automatically generate the user’s private keys locally, meaning they are only generated and stored on the device and not by the wallet provider, during onboarding.
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Like regular keys on a keychain, Bitcoin private keys can be copied. This makes [private key management]({{ '/guide/private-key-management/introduction' | relative_url }}) one of the most important considerations of any bitcoin owner. Bitcoin wallet applications should automatically generate the user’s private keys locally, meaning they are only generated and stored on the device and not by the wallet provider, during onboarding.
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<div class="center" markdown="1">
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Ok, now let's look at [backing up a recovery phrase.]({{ '/guide/onboarding/backing-up-a-recovery-phrase/' | relative_url }})
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Ok, now let's look at [backing up a recovery phrase.]({{ '/guide/onboarding/backing-up-a-wallet/' | relative_url }})
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{% include next-previous.html
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previousUrl = "/guide/onboarding/introduction/"
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previousName = "Getting to know your users"
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nextUrl = "/guide/onboarding/backing-up-a-recovery-phrase/"
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nextUrl = "/guide/onboarding/backing-up-a-wallet/"
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nextName = "Backing up a recovery phrase"
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%}

guide/onboarding/introduction.md

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### [Backing up a recovery phrase]({{ 'guide/onboarding/backing-up-a-recovery-phrase' | relative_url }})
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### [Backing up a wallet]({{ 'guide/onboarding/backing-up-a-wallet' | relative_url }})
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An overview of the tradeoffs between using [manual backup]({{ 'guide/onboarding/backing-up-a-recovery-phrase/manual-backup' | relative_url }}) vs [automatic cloud backup]({{ 'guide/onboarding/backing-up-a-recovery-phrase/automatic-cloud-backup' | relative_url }}).
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An overview of the tradeoffs between using [manual backup]({{ 'guide/onboarding/backing-up-a-wallet/manual-backup' | relative_url }}) vs [automatic cloud backup]({{ 'guide/onboarding/backing-up-a-wallet/cloud-backup' | relative_url }}).
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guide/onboarding/manual-backup.md

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title: Manual backup
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description: How to manually back up the recovery phrase of a Bitcoin wallet.
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grand_parent: Onboarding
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parent: Backing up a recovery phrase
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parent: Backing up a wallet
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nav_order: 2
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permalink: /guide/onboarding/backing-up-a-recovery-phrase/manual-backup/
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permalink: /guide/onboarding/backing-up-a-wallet/manual-backup/
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image: https://bitcoin.design/assets/images/guide/onboarding/backing-up-a-recovery-phrase/backing-up-a-recovery-phrase-preview.png
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The next section will highlight some options for [restoring a wallet]({{ '/guide/onboarding/restoring-a-wallet/' | relative_url }}).
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{% include next-previous.html
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previousUrl = "/guide/onboarding/backing-up-a-recovery-phrase/automatic-cloud-backup/"
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previousUrl = "/guide/onboarding/backing-up-a-wallet/cloud-backup/"
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previousName = "Automatic cloud backups"
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nextUrl = "/guide/onboarding/restoring-a-wallet/"
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nextName = "Restoring a wallet"

guide/onboarding/restoring-a-wallet.md

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There are several reasons why a user might need to restore their Bitcoin wallet. They may have lost their device, be migrating from a different application or have deleted their wallet application. Regardless of why, it’s important that your wallet application has an easy way for users to recover their funds.
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There are several reasons why a user might need to restore their Bitcoin wallet. They may have lost their device, be migrating from a different application or have deleted their wallet application. Regardless of why, it’s important that your wallet application has an easy way for users to recover their funds.
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However, not all wallets from one application can be recovered in another, depending on what standards they support, as covered in the [wallet interoperability]({{ 'guide/designing-products/wallet-interoperability' | relative_url }}) section. Lack of interoperability and vendor dependance is an issue for wallets holding bitcoin on the Lightning network. Lightning network wallets can currently only be restored in the application originally used. It's also worth noting that restoring from a recovery phrase only restores the private keys, but no user data like transaction notes, contacts etc.
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However, not all wallets from one application can be recovered in another, depending on what standards they support, as covered in the [wallet interoperability]({{ 'guide/designing-products/wallet-interoperability' | relative_url }}) section. Lack of interoperability and vendor dependance is an issue for wallets holding bitcoin on the Lightning network. Lightning network wallets can currently only be restored in the application originally used. It's also worth noting that restoring from a recovery phrase only restores the private keys, but no user data like transaction notes, contacts etc.
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{% include picture.html
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As outlined earlier in the chapter, we consider an [automatic cloud backup](/guide/onboarding/backing-up-a-recovery-phrase/automatic-cloud-backup/) a good option, especially for beginners. One of the major UX benefits of this is a seamless recovery process. Assuming they are restoring in the same wallet application originally used, all the user needs to do to gain access to their funds again is to log in to their cloud storage account (typically iCloud or Google Drive).
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As outlined earlier in the chapter, we consider an [automatic cloud backup](/guide/onboarding/backing-up-a-wallet/cloud-backup/) a good option, especially for beginners. One of the major UX benefits of this is a seamless recovery process. Assuming they are restoring in the same wallet application originally used, all the user needs to do to gain access to their funds again is to log in to their cloud storage account (typically iCloud or Google Drive).
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### Restore manually with a recovery phrase
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Users may have created a wallet with another wallet application. In this case, they should be able to import that wallet into yours by entering their 12 or 24-word recovery phrase. There are several options for the UI when entering a recovery phase, as outlined earlier in the [manual backup]({{ 'guide/onboarding/backing-up-a-recovery-phrase/manual-backup/' | relative_url }}) section of this chapter.
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Users may have created a wallet with another wallet application. In this case, they should be able to import that wallet into yours by entering their 12 or 24-word recovery phrase. There are several options for the UI when entering a recovery phase, as outlined earlier in the [manual backup]({{ 'guide/onboarding/backing-up-a-wallet/manual-backup/' | relative_url }}) section of this chapter.
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### Restore from an encrypted QR code backup
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Some applications also provide an option for users to scan an encrypted proprietary QR code version of their recovery phrase. For a more detailed explanation of this recovery technique, check out this [blog post](https://blog.keys.casa/product-update-transaction-memos-encrypted-backups/) by Casa.
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### Restore a wallet with funds on the Lightning network
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To fully restore a wallet with funds on the [Lightning network](/guide/glossary/#lightning-network), the state and history of the payment channels are needed in addition to the recovery phrase. As there are no standards for this yet, wallet applications need to have their own format for backing this up, and subsequently restoring. Due to the amount of information, a QR code of the encrypted data, like in the previous example, can be appropriate.
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To fully restore a wallet with funds on the [Lightning network](/guide/glossary/#lightning-network), the state and history of the payment channels are needed in addition to the recovery phrase. As there are no standards for this yet, wallet applications need to have their own format for backing this up, and subsequently restoring. Due to the amount of information, a QR code of the encrypted data, like in the previous example, can be appropriate.
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{% include tip/recommendation.html %}
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Be clear to users what you support and what wallet specifications they can expect to restore in your application. Most bitcoin products should support restoring from a recovery phrase at a minimum. Capability to restore an HD wallet implemented according to BIP32, 39, 43, 44, 49, 84 and 380 would be a good starting point.
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Be clear to users what you support and what wallet specifications they can expect to restore in your application. Most bitcoin products should support restoring from a recovery phrase at a minimum. Capability to restore an HD wallet implemented according to BIP32, 39, 43, 44, 49, 84 and 380 would be a good starting point.
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{% include tip/close.html %}
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{% include next-previous.html
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previousUrl = "/guide/onboarding/backing-up-a-recovery-phrase/manual-backup/"
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previousUrl = "/guide/onboarding/backing-up-a-wallet/manual-backup/"
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previousName = "Manual backups"
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nextUrl = "/guide/onboarding/protecting-a-wallet/"
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nextName = "Protecting a wallet"

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