A recovery phrase (also known as a seed phrase, wallet seed phrase, recovery phrase, or recovery key) is a sequence of 12 or 24 simple, randomly generated words that gives you complete access and control over your cryptocurrency stored in a digital wallet. Think of it as a master key to all your digital assets.
How does the wallet seed phrase work?
When you create a cryptocurrency wallet (whether it’s a hardware wallet, software wallet, or a mobile app), the wallet generates this recovery phrase. From this seed phrase (wallet seed phrase) are derived all the private keys associated with your public addresses in that wallet. This means that even if you lose access to the device on which you have your wallet (phone, computer, hardware wallet), you can always retrieve your funds by importing the seed phrase into another compatible wallet. For added security for your funds, we invite you to explore the Ledger wallet, a leading cryptocurrency storage solution, detailed and recommended in our blog post:“Cryptocurrency wallet: Ledger, the perfect solution for investors“.
Why the recovery phrase is so important
- Funds recovery: it’s the only way to get your cryptocurrency back in case you lose, damage or have the device you have your wallet on stolen. Without it, your funds are unrecoverable.
- Total Control: Whoever owns the seed phrase has complete control over your funds. There is no “password recovery” like with a bank account or email. If someone gets your seed phrase, they can transfer all the cryptocurrency in your wallet.
- Decentralized security: Unlike a bank account where your bank manages your funds, in the crypto world you are your own banker. Fra Fra Fra Fra recovery is the tool that gives you this freedom and, by extension, this responsibility.
Essential tips for keeping your wallet seed phrase safe
- Write it on paper: The safest method is to write it on a piece of paper (or several) and store it in a secure, offline location. Avoid storing it digitally (on your computer, phone, email, cloud) as these mediums are vulnerable to hackers and cyber attacks.
- Don’t photograph it: never take a photo of your recovery phrase with your phone or any other internet-connected device.
- Don’t share it with anyone: Do not, under any circumstances, share your recovery phrase with anyone, no matter who they claim to be (tech support, a new project, a friend, etc.). Anyone asking for your seed phrase is trying to scam you.
- Spell check: Make sure you spell every word correctly. One mistake can make the sentence unusable.
- Protect it from disasters: Think about protecting against fire, flood or other disasters. You can use metal plates or other sturdy storage solutions.
In conclusion, the recovery phrase (wallet seed phrase) is the most important element for the security of your crypto funds.
Are you an investor looking to buy or sell cryptocurrencies? On our website you can find a dedicated page, the Cryptocurrency Price List, where you can see the up-to-date exchange rates! In addition to this, you also have a profit calculator specially designed for cryptocurrencies. If you’re looking to invest, you can use it to quickly and effortlessly calculate your profit or loss based on the buying price, selling price and amount invested.