Arecovery phrase, also known as a seed phrase, recovery key or mnemonic phrase, is a series of words (usually 12 or 24) generated by a cryptocurrency wallet when you first create it. These words are essentially the master key to all your cryptocurrencies stored in that wallet.
Wallet seed phrase : How it works
Think of the recovery seed phrase as the “ultimate password” or “security key” to your crypto wallet. Here’s why it’s so important:
- Private key generation : The recovery phrase is not a password in the traditional sense. In reality, it acts like a seed from a tree: from it are algorithmically derived all the private keys associated with your cryptocurrency addresses in that wallet. If you lose access to your original wallet (for example, your phone breaks down, you steal your laptop, or you simply want to use a different device or wallet app), you can use this recovery phrase to restore access to your funds on any other compatible wallet.
- Device/app independence: This phrase frees you from dependency on a particular device or wallet app. As long as you have the recovery phrase, you can access your funds even if the original hardware or software no longer exists.
- Standardization: Most modern wallets follow standards such as BIP39 ( Bitcoin Improvement Proposal 39), which means that a recovery phrase generated in a Ledger wallet, for example, can be used to restore your funds in a Trezor or Trust Wallet (and vice versa), as long as they support the same coins and the same standard.
Why is the security of a recovery phrase important?
- Total control, total responsibility: Unlike a bank account where the bank can reset your password, in the crypto world you are solely responsible for the security of your funds. If you lose your recovery phrase and have no other backups, you will permanently lose access to your cryptocurrency. No one can help you recover it.
- Gateway to any hacker: Anyone who has access to your recovery phrase has full and immediate access to all the funds in your wallet. There are no two-factor authentication or other security measures to protect you if an attacker has your passphrase. Funds can be moved in seconds, irreversibly.
Essential tips for recovery passphrase security
- Write your recovery phrase on paper: This is the most recommended method. Write the words carefully, in the correct order, on a sturdy piece of paper.
- Do not use digital formats: NEVER store your recovery phrase on your computer, phone, in email, on Google Drive, in the cloud, in note apps, or in messages. Any digital format is vulnerable to hackers, viruses or device failure.
- Multiple copies, secure locations: Make at least two or three physical copies of your recovery phrase and store them in different, secure and hidden locations that are not exposed to flood, fire or theft. Consider a safe, a safe deposit box, or a secret place at home.
- No photos: Never take pictures of your recovery phrase. Every digital image, whether stored on your phone, in the cloud, or sent to someone else, exponentially increases the risk of it falling into the wrong hands and losing all your funds.
- Never share it: Absolutely no one, ever, needs your recovery phrase. Any request to share it is a scam.
In conclusion, the recovery phrase is the pillar of your security in the crypto world. Treat it with utmost seriousness and protect it better than you would protect gold or cash!
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