Glossary
Security

Seed Phrase (Recovery Phrase)

A sequence of 12 or 24 random words that serves as the master backup key for a cryptocurrency wallet, capable of restoring all associated private keys and funds.

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A seed phrase (also called recovery phrase, mnemonic phrase, or secret recovery phrase) is a sequence of 12 or 24 randomly generated words that acts as the master key to a cryptocurrency wallet. From these words, all private keys and wallet addresses are mathematically derived using the BIP-39 standard. The seed phrase is the single most critical piece of information in crypto self-custody: anyone who possesses the seed phrase has complete and irreversible control over all funds in that wallet. Conversely, losing the seed phrase means permanently losing access to the funds if the wallet device is lost, broken, or becomes inaccessible — there is no password reset, no customer support, and no recovery process. Security best practices: write the seed phrase on paper or stamp it into metal (steel backup plate), store at least two copies in separate physical locations (home safe and bank safe deposit box), and never photograph it, type it into any device, store it on any cloud service, or share it with anyone. Any request for your seed phrase — from anyone, for any reason — is always a scam. In 2026, the seed phrase remains both the greatest strength and greatest vulnerability of crypto self-custody.