The seed phrase (also known as the recovery phrase, backup seed phrase, or mnemonic phrase) refers to a list of 12–24 words generated in a specific order, used by cryptocurrency wallet users to restore access and control over their funds on the network. This also means that any third party who knows your recovery key can potentially transfer your funds to another wallet address.
The mnemonic phrase is a randomly generated string of words, cryptographically derived from the wallet’s private key and linked to 12, 18, or 24 words (at the user’s discretion) from a list of 2048 English words called the BIP39 Wordlist. This sequence can also be converted into a corresponding series of mapped numbers, granting the user access to their wallet and its public and private key pair.
Cryptocurrency wallet software is designed to generate these phrases, which must then be saved by users. This ensures that even if the hardware fails, is lost, or stolen, they will always be able to reload the wallet software and use the seed phrases to restore access to their assets.
It is recommended to store a copy of the seed phrase offline, as this makes it immune to hacking. Seed phrases stored on internet-connected devices are considered unsafe and are not recommended.
The recommended way to store a copy of the seed phrase is to write it down and keep it in a secure location, such as a vault or safe. Do not leave a copy of your seed phrase in any format, even as a printed file or photo.
Hardware (cold) wallets can securely store private keys without the security risks associated with online wallets. However, the security of your wallet depends on the method you use to hide the initial recovery number.
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