Seed Phrase Meaning

Dec 16, 2022 | Updated Oct 4, 2024

A seed phrase is a collection of randomly generated words that represent all private keys associated with a given crypto wallet; the phrase enables the contents of a crypto wallet to be restored, even if access to the wallet itself is lost.

What is a Seed Phrase?

A seed phrase, also known as a recovery phrase, backup phrase, or mnemonic phrase, is a collection of randomized words that forms a type of password Usually consisting of either 12 or 24 words, seed phrases are generated when a user first sets up their wallet. The phrase is used to access or recover assets in a cryptocurrency wallet.

The words are generated from a list of 2048 words. Here’s an example of what a seed phrase looks like.

ability, acoustic, disease, magnet,
snow, agile, dish, tube,
turkey, football, border, cake.

Note that seed phrases are not case-sensitive.

How Does it Work?

It works as a master key, giving users access to their private keys. The private keys verify that the person in question owns the funds that are stored in a blockchain address, which is reflected in the wallet.

If you lose access to your wallet, your funds will remain intact on the blockchain. A seed phrase will allow you to regain access to your wallet. However, if you lose it you will not be able to regain your funds.

How to Store the Seed Phrase Securely

Your seed phrase is vital in protecting your funds and should be properly secured. If anyone besides you has access to it, they can recover your entire crypto wallet remotely and access the funds you’re storing on the blockchain.

Storing it electronically via self-sent emails or chats leaves it open to compromise if your account is hacked. Memorizing is the best possible way to keep it secure, but it can be challenging. If you forget one of the words or arrange them incorrectly, you will lose access to your funds.

There are several ways to properly secure your seed phrase, including:

Storing it offline.
Engraving the phrase into metal plates like Cryptotag, and Billfodl or metal medium like Cryptosteel.
Securing it in a safety deposit box, vault, or any other safe location.
If you generated your seed phrase on a hardware device to begin with, you can seed this same phrase into another hardware device to be used as a backup of your crypto wallet.