What Is Seed Phrase?
Also known as: Recovery Phrase, Secret Recovery Phrase, Mnemonic Phrase, Backup Phrase, Recovery Seed
In short
A seed phrase is a master backup, usually 12 or 24 words, generated when a cryptocurrency wallet is created, that is enough to recreate all of the wallet's private keys; anyone who obtains the phrase can access the funds.
Most modern wallets use the BIP-39 standard. The wallet generates a random number and converts it into words chosen from a standard list of 2048 words; this turns a long, meaningless number into a word sequence that is easy to write down and read. The master key derived from this phrase can produce many addresses and private keys on different blockchains thanks to the hierarchical deterministic (HD) wallet structure. The order of the words is also part of the phrase.
When a device is lost or damaged, or the wallet app is deleted, all accounts can be restored by entering the seed phrase into another compatible wallet. Some wallets allow an optional passphrase to be added on top of the phrase; this creates an additional layer of protection against the phrase being obtained on its own.
A seed phrase should never be shared with anyone under any circumstances and should not be stored in digital forms such as photos, cloud notes or email. A legitimate wallet, exchange or support team will never ask for this phrase; websites and messages that ask for it are phishing attempts. Writing the phrase on paper or a metal plate and keeping it in several secure places is a common practice.
Last updated: · This content is for information purposes only and is not investment advice.