With iCloud Photo Library, all the photos and videos from photo library ar stored in iCloud. It is useful to access them from any iOS devices, Mac or iCloud.com. Even if you use iCloud Photo Library, it is important to backup your library anywhere else. To do so, you can manually copy your library to an external device or use Time Machine. To manually copy your library to an external storage device, drag the 'Photos' library to your storage device to create a copy. By default, you will see 'Photos' library in the 'Pictures' folder on your Mac.
If you want to use Time Machine, you need to set up Time Machine on your Mac. Once you have set up, it automatically backs up the files on your Mac. If you ever lose the files in your 'Photos' library, you can restore them from the Time Machine backup.
If you have more than one photo library, make sure that you have backed up them all. The image files which are stored outside your photo library, those files are known as "Referenced files". The Referenced files are not backed up when you back up your library. You need to backup those files separately. If you want to backup all your photos or image files at a time, then you can consolidate Referenced files into your library.
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