Mycelium implements a robust disaster recovery system centered around its BIP39-compliant mnemonic seed phrase, which serves as a master backup for the entire wallet. This 12 or 24-word phrase can restore all generated addresses and transaction history on any compatible wallet software. The mycelium wallet encourages users to write down this seed phrase on durable materials and store it in secure locations, with some users opting for specialized metal backup solutions that protect against physical damage from fire or water. Beyond the seed phrase, the wallet includes additional backup verification features that help users ensure their backup is correct and complete before it’s needed in an emergency. The application’s design allows for complete wallet restoration from scratch using only the seed phrase, with all transaction history rebuilt directly from the blockchain during the synchronization process. For advanced users, Mycelium supports multi-signature setups that can distribute recovery responsibility across multiple parties or locations, reducing single points of failure. These comprehensive backup and recovery mechanisms provide users with confidence that their Bitcoin holdings are protected against device loss, damage, or failure, ensuring that access to funds can be restored in virtually any scenario while maintaining the security principles of self-custody that are fundamental to Bitcoin and essential for long-term asset protection.
