Understanding Seed Phrases
A seed phrase, also known as a seed recovery phrase, backup seed phrase, or mnemonic phrase, is a generated list of 12 to 24 words used by crypto wallet users to regain access and control of their funds on the blockchain.
It is a backup to restore the wallet’s private key and associated addresses.
Key to Wallet Security
The seed phrase is typically a randomly-generated sequence of words derived from the wallet’s private key.
It consists of 12, 18, or 24 words chosen from a predefined list of 2,048 English words known as the BIP39 Wordlist.
These words are arranged in a specific order. The seed phrase can also be converted into a corresponding series of numbers that provide access to the wallet’s public-private key pair.
Protecting Your Crypto Assets
The software generates the seed phrase when using a crypto wallet, and users must keep it safe.
If the hardware wallet is lost, stolen, or malfunctions, the seed phrase can be used to restore access to the wallet and its assets.
Keeping a copy of the seed phrase offline is recommended to minimize the risk of hacking.
Storing seed phrases on devices connected to the internet is considered unsafe and not recommended.
Best Practices for Crypto Asset Protection
The best practice for storing a seed phrase is to write it down and keep it in a secure location such as a vault or safe box.
It’s important not to leave a copy of the seed phrase in any digital format, including print files or photos.
Hardware wallets, also known as cold wallets, can securely store private keys, providing an additional layer of security.
However, ensuring that the method used to hide the recovery seed is equally secure is essential.