The seed phrase has been the standard way to back up a self-custody wallet for over a decade. Write down 12 or 24 words. Store them somewhere safe. Never lose them. In theory, it works. In practice, it scares people away from self-custody entirely.
The questions are always the same. What if I lose the paper? What if someone finds it? What if I write a word down wrong? What if my house floods? For many users, the seed phrase is not a security feature. It is a reason to keep their funds on an exchange.
Internal demand testing confirmed this. When given the choice between cloud backup and seed phrase backup, 30% of users preferred cloud backup. Only 10% preferred the seed phrase. The remaining users wanted both. Cloud backup gives those users what they already trust. Back up your wallet the same way you back up your passwords and your sensitive messages.
How cloud backup works
Cloud backup is available to all mobile wallet users on iOS and Android. Here is the setup process.
Step 1: Choose cloud backup. During wallet setup, select iCloud backup (iOS) or Google Drive backup (Android) as your backup method. You can also enable it later from your wallet settings.
Step 2: Create an encryption password. The app asks you to create a password. This password encrypts your wallet data before it leaves your device. Use letters, numbers, characters, and capitals. Make it strong.
Step 3: The app encrypts and uploads. Your wallet data is encrypted on your device using the password you created. The encrypted file is then uploaded to your iCloud or Google Drive account.
How to restore from cloud backup
Restoration is .
Open the Tangem app on a new or reset device. The restore option appears automatically if a cloud backup exists in your iCloud or Google Drive. Enter your encryption password. Your wallet is restored.
From Wallet settings. Go to Add Wallet in the app settings. Select the option to restore from cloud backup. Enter your password.
If multiple backups exist (for example, if you deleted a wallet and created a new one), the app shows you which wallet you want to restore. You select the one you need.
The security model
Cloud backup introduces a security architecture built on three principles: on-device encryption, zero-knowledge design, and layered protection.
On-device encryption
Your wallet data is encrypted on your phone before it uploads to the cloud. The encryption uses the password you created during setup. The encrypted file stored in your iCloud or Google Drive is unreadable without your password. If someone gained access to your cloud storage account, they would find an encrypted file that they could not open.
Zero-knowledge design
Tangem operates on a zero-knowledge model for cloud backup. This means:
Tangem never receives your password. Your password is created on your device, used on your device, and stays on your device. It is not transmitted to Tangem servers, not stored in Tangem databases, and not recoverable by Tangem support.
Tangem never receives your unencrypted wallet data. The raw wallet data exists only on your device. What reaches the cloud is already encrypted.
Tangem cannot access, read, decrypt, or recover your deleted backup. There is no backdoor, no master key, no admin override. If you lose your password, Tangem cannot help you decrypt the backup.
Cloud platform security as a second layer
Your encrypted backup file is stored in your personal iCloud or Google Drive account. The security of that account adds a second layer of protection on top of the encryption itself.
iCloud (iOS). If you have two-factor authentication enabled on your Apple ID (which Apple strongly encourages), accessing your iCloud account requires both your Apple ID password and a verification code from a trusted device. An attacker would need your Apple credentials, access to your trusted device, and your Tangem encryption password to decrypt the backup.
Google Drive (Android). Google accounts support two-factor authentication, security keys, and advanced protection programs. The same principle applies: accessing the encrypted file requires your Google credentials and passing your 2FA, and decrypting it requires your Tangem encryption password on top of that. Think of it as two locks on two separate doors. Your cloud account protects the file. Your encryption password protects the contents.
How cloud backup compares to seed phrase security
A seed phrase is secured by physical storage. Wherever you put the paper (or metal plate or safe deposit box) is your security. Anyone who can see or photograph those words has full access to your wallet. There is no second factor. There is no encryption layer. Possession equals access.
Cloud backup is secured by encryption and account access controls. The backup file is useless without the password. The password is useless without the file. Even if one layer is compromised, the other still protects you.
Neither method is objectively better in all situations. A seed phrase stored in a bank vault is extremely secure against remote attacks. A cloud backup with a strong password and a 2FA-protected cloud account is extremely secure against physical theft. They protect against different threat models.
What happens if I forget my password
There is no password recovery. Tangem does not store your password and cannot reset it. If you forget your encryption password, you cannot restore from the cloud backup. You will need to use your seed phrase to recover your wallet. This is the most important reason to set up both backup methods.
Can I use both cloud backup and a seed phrase?
Yes. You can enable cloud backup and seed phrase backup at the same time.
Cloud backup is your convenient, everyday recovery method. The seed phrase is your fallback if you ever lose access to your cloud account or forget your encryption password. Both active at once gives you maximum flexibility.
Can I delete my cloud backup?
Yes. You can remove your cloud backup at any time from the backup settings screen in the app. Deleting the backup removes the encrypted file from your iCloud or Google Drive.
What about switching between iOS and Android?
Cloud backup works within the same platform. An iCloud backup restores on iOS devices. Google Drive backups restore on Android devices. If you need to switch from iOS to Android, or vice versa, use your seed phrase to transfer your wallet. This is the one scenario where the seed phrase is essential for cloud backup users.
For some users, a seed phrase is the right choice and always will be. For many others, cloud backup is the option that finally makes self-custody feel manageable. Tangem App 6.3 gives you both. Choose the one that fits your lifestyle, or use both.
Ask AI whether Tangem is a good fit for your needs
Research Tangem wallet with AI to learn whether our security and usability fits your unique use cases
