I used this method for the unencrypted means to backup the file. But what about if I backup the wallet encrypted and my laptop is damaged and I want to recover through encrypted backup file. Is it possible to buy another laptop, recover the private keys from the encrypted file backup if I download electrum on the new electrum wallet downloaded on new laptop?
Though I will have my seed phrase too in case that does not work.
A corrupted file is a corrupted file, regardless of whether it's encrypted or not. Sure they're may be some readable text in an unencrypted file that might give you most of the private key(s), but that's just a roll of the dice. Regardless of whether the file is encrypted or not, you'll want to make regular backups and keep them secure. An encrypted wallet file can be opened on any machine with Electrum installed, all that's needed is the password.
I would be more comfortable with using the seed as a backup method. It would definitely work and there is no reason why backing up the file would be better than it, unless you need the labels and stuff like that. I would probably avoid exposing the seed so much as well.
Of course the seed phrase should be your primary backup, but it's nice to save labels and contacts. That is, in fact all that backing up the wallet file will buy you.
