Seed Phrase

What is a Seed Phrase?

A seed phrase (also called recovery phrase or mnemonic) is a human-readable backup of your entire cryptocurrency wallet. It’s typically 12 or 24 words that can regenerate all private keys and accounts in your wallet.

Example Seed Phrase

apple banana cherry dog elephant fish grape honey igloo jacket king lemon

This is just an example - never use a seed phrase from the internet!

How Seed Phrases Work

Generation

1. Wallet creates random entropy (128-256 bits)
2. Converts to mnemonic words (BIP-39 standard)
3. Words derive master private key
4. Master key derives all wallet addresses

Recovery

1. Enter 12/24 words in correct order
2. Wallet recalculates master key
3. All accounts automatically restored
4. Works on any compatible wallet

Why Seed Phrases Matter

One Phrase, Many Keys

• Controls entire wallet
• All cryptocurrencies within
• All addresses (past and future)

Hardware Independent

• Phone breaks? Recover with phrase
• Computer crashes? Recover with phrase
• Ledger stolen? New device + phrase

Permanent Backup

• No expiration
• No server needed
• Works forever

Seed Phrase Security

NEVER Do This

• Store digitally (photos, notes apps, cloud)
• Share with anyone
• Enter on websites
• Send via email/message
• Store in plain sight

Best Practices

• Write on paper immediately
• Store in secure location (safe, safety deposit box)
• Multiple backups in different locations
• Consider metal backup (fire/water resistant)
• Memorize if possible (optional extra layer)

12 vs 24 Words

Feature	12 Words	24 Words
Entropy	128 bits	256 bits
Security	Very high	Extremely high
Ease of backup	Easier	Harder
Common use	Mobile wallets	Hardware wallets

Both are secure - 12 words is 2^128 possibilities.

What If Seed Phrase is Compromised?

Immediate Actions

1. Transfer funds to new wallet immediately
2. Generate new seed phrase
3. Never use compromised phrase again
4. Investigate how it was exposed

Prevention

• Never enter online
• Verify URLs carefully
• Beware of phishing

Seed Phrase Scams

Common Attacks

• Phishing sites asking for phrase
• Fake support requesting recovery phrase
• Malware capturing clipboard/keystrokes
• Physical theft of written phrase

Remember

• No legitimate service ever needs your seed phrase
• Support will never ask for it
• If someone asks, it’s a scam

Storage Solutions

Paper Backup

• Pro: Simple, offline
• Con: Can burn, get wet, fade

Metal Backup

• Pro: Fire/water resistant
• Con: More expensive, visible

Split Storage

• Pro: No single point of failure
• Con: Complex to recover

Memory

• Pro: Can’t be stolen
• Con: Can forget, can’t pass to heirs

Testing Your Backup

1. Write down seed phrase
2. Delete wallet from device
3. Restore using seed phrase
4. Verify all accounts recovered
5. Done! Backup confirmed working