FUNDAMENTALS OF CRYPTO
Seed Phrase
What is a Seed Phrase?
A seed phrase (also known as a recovery phrase or mnemonic phrase) is a collection of 12-24 random words generated by your crypto wallet when you first set it up.
This phrase is essentially the master key to your wallet. It allows you to recover all your assets stored within that wallet, even if your device is lost, stolen, or damaged.
Every private key, address, and asset inside your wallet can be recreated from this one phrase. That’s why your seed phrase is the single most important piece of information in your entire crypto setup.
Note: Whilst your private key is also extremely important, it can be recovered if you ever forgot/misplaced it by using your seed phrase.
Unlike usernames or passwords, there’s no reset button for a seed phrase. If you lose it, you lose access to your funds permanently.
Your seed phrase = your self-custodial ownership.
How do I use my seed phrase?
You’ll typically use your seed phrase when:
- Setting up a new wallet on a new device.
- Recovering an existing wallet that was deleted or lost.
- Migrating wallets between devices or apps.
When you first create a wallet, you’ll be shown your seed phrase and asked to write it down. Never skip this step. You won’t be able to personalise your 12-24 words in any way. They’re randomly generated at the creation of your wallet, and can never be changed.
Later, if you ever need to restore your wallet, simply select “Import Wallet” (or “Recover Wallet”) in your chosen wallet app and enter your seed phrase in the exact word order it was given to you.
That’s all it takes to recover full access to your funds and history.
How to Safely Store a Seed Phrase?
This is where most people go wrong.
Your seed phrase must be stored in a way that’s both offline and secure from theft, loss, or damage.
Here are the best practices to follow:
✅ Write it down on paper
Store the paper in a fireproof/waterproof safe or somewhere no one else can access.
✅ Use a metal backup
Engraving or stamping your seed phrase onto a metal plate protects it from fire, water, and decay.
✅ Store in multiple locations
Keep two separate copies in different secure places (for example, a home safe and a safety deposit box).
🚫 Never store it digitally
Avoid screenshots, photos, notes apps, cloud drives, or email. Hackers and malware can easily access these.
🚫 Never share it
No one legitimate will ever ask for your seed phrase. Anyone who does is trying to steal your assets.
What happens if I lose my seed phrase?
If you lose your seed phrase, you lose access to your crypto forever.
The wallet provider cannot help you recover it, because they don’t store your phrase or keys… only you do. That’s the trade-off of decentralisation; you get full control, but also full responsibility.
Alternatively, If someone else gains access to your seed phrase, they can instantly drain your wallet from anywhere in the world. This highlights the immense importance of storing your seed phrase in a secure place.
What should & shouldn’t I do with my seed phrase?
DO:
- Write it down on paper clearly, double-check all spelling.
- Store it offline, in multiple secure locations.
DON’T:
- Store it on your phone, computer, or online storage.
- Share it with anyone, ever.
- Enter it on any unknown website or app.
- Take photos or screenshots of it.
Your seed phrase is the foundation of self-custody.
It gives you absolute control over your digital assets, but only if you treat it with the respect it deserves.
In crypto, ownership equals security, and your seed phrase is the ultimate key to both.
Now that you know what a Seed Phrase is, it’s time to move on to our next lesson topic, “What is a Crypto Wallet”.
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