diff --git a/core/src/main/java/bisq/core/btc/setup/WalletConfig.java b/core/src/main/java/bisq/core/btc/setup/WalletConfig.java
index 6bf36d82b4..b7042e1c74 100644
--- a/core/src/main/java/bisq/core/btc/setup/WalletConfig.java
+++ b/core/src/main/java/bisq/core/btc/setup/WalletConfig.java
@@ -22,6 +22,7 @@ import bisq.core.btc.nodes.ProxySocketFactory;
 import bisq.core.btc.wallet.BisqRiskAnalysis;
 
 import bisq.common.config.Config;
+import bisq.common.file.FileUtil;
 
 import com.google.common.io.Closeables;
 import com.google.common.util.concurrent.*;
@@ -510,6 +511,14 @@ public class WalletConfig extends AbstractIdleService {
                 // wait for the aesKey to be set and this method to be invoked again.
                 return;
             }
+            // Do a backup of the wallet
+            File backup = new File(directory, WalletsSetup.PRE_SEGWIT_WALLET_BACKUP);
+            try {
+                FileUtil.copyFile(new File(directory, "bisq_BTC.wallet"), backup);
+            } catch (IOException e) {
+                log.error(e.toString(), e);
+            }
+
             // Btc wallet does not have a native segwit keychain, we should add one.
             DeterministicSeed seed = wallet.getKeyChainSeed();
             if (aesKey != null) {
diff --git a/core/src/main/java/bisq/core/btc/setup/WalletsSetup.java b/core/src/main/java/bisq/core/btc/setup/WalletsSetup.java
index 650f929785..9b1ce93418 100644
--- a/core/src/main/java/bisq/core/btc/setup/WalletsSetup.java
+++ b/core/src/main/java/bisq/core/btc/setup/WalletsSetup.java
@@ -109,6 +109,8 @@ import static com.google.common.base.Preconditions.checkNotNull;
 @Slf4j
 public class WalletsSetup {
 
+    public static final String PRE_SEGWIT_WALLET_BACKUP = "pre_segwit_bisq_BTC.wallet.backup";
+
     @Getter
     public final BooleanProperty walletsSetupFailed = new SimpleBooleanProperty();
 
@@ -421,6 +423,13 @@ public class WalletsSetup {
             log.error("Could not delete directory " + e.getMessage());
             e.printStackTrace();
         }
+
+        File segwitBackup = new File(walletDir, PRE_SEGWIT_WALLET_BACKUP);
+        try {
+            FileUtil.deleteFileIfExists(segwitBackup);
+        } catch (IOException e) {
+            log.error(e.toString(), e);
+        }
     }