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What’s a Seed Recovery Phrase? How Do They Work?

By Evan Joneslast Monday at 2:57 PM

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If you’re new to the cryptocurrency sector, or have recently set up a crypto wallet, then you may have encountered something called a seed recovery phrase, or secret phrase. These phrases are crucial to the security of your crypto wallet and are extremely valuable pieces of information that you need to keep safe. 

In this guide, we’re going to explain what seed recovery phrases are, how they work, tips to keep them safe, and more. Let’s jump in.

Secret Phrases and Seed Recovery Phrases

A seed recovery phrase, or secret phrase, is a sequence of 12 or 24 words randomly generated and shown to you when you set up a new crypto wallet. The library of words it chooses from is 2,048 simple words, creating a situation where it is almost impossible to guess someone else’s phrase or have two of the same sequence occur seeing as it has to be entered in the exact same order. 

Regardless of whether you’re setting up a hardware or software wallet you’ll have to note this phrase. 

The seed recovery phrase’s only purpose is to recover your wallet in case you lost your device or it was stolen, or simply because you got a new device. The recovery phrase makes it so that you’re essentially able to import your wallet onto any new device and gain access to your funds on it by using your recovery phrase. That last point is why it is incredibly important to keep your phrase safe.

How Recovery Phrases Work

Basically, when you set up a crypto wallet for the first time, whether for Bitcoin, Ethereum, or just about any other blockchain network, you’ll be shown a set of 12 or 24 words in a specific, numbered sequence. 

You’re then supposed to write this phrase down, in that numbered order, whether on a piece of paper, or something more permanent (more on this later, but avoid taking a screenshot or something else digitally accessible). 

The wallet setup process will then ask you to either re-enter the entire phrase in order, or some combination of the words noted by number, in order to prove that you have in fact written down the phrase.

Now, you may also have noticed when you set up that crypto wallet, that there was an option to import an existing wallet. This is what the recovery phrase is for. So, if you had a MetaMask wallet on your old laptop and just got a new one, then all you do is redownload the MetaMask browser extension, and then choose to import an existing wallet rather than create a new one. 

You’ll then simply have to enter the recovery phrase you wrote down when you set up the wallet on your old laptop, and your crypto wallet will now be on your new laptop. It’s also still on your old laptop, which is why it’s important to wipe the device properly if you’re selling it or throwing it away.

Tips for Keeping Your Recovery Phrase Safe

Since your entire crypto wallet can be recovered using your recovery phrase, it’s obviously important to keep it safe. If someone gets a hold of it, they can simply import your wallet on a device they control and move your digital assets as they see fit.

This is why it’s not recommended to take a screenshot, picture, or create a document or some sort of digital file that contains your seed recovery phrase. It’s simply too easy for someone to gain access to something stored digitally for it to be safe that way.

Generally, hardware wallet companies will include some sort of pamphlet to note your phrase down in, and this is perfectly acceptable. You can also just write it down on a piece of paper, or in more extreme cases of security, using a metal engraving option. Any of these above options work for when you’re setting up a software wallet as well.

As long as you keep whatever you wrote the phrase on in a safe place, then you’re good to go. Some extreme options also include writing your phrase in separate sections and keeping all those sections in different locations.

Also, there is no one other than you that will ever need your seed phrase. If someone is asking for it for any reason, it is a scam.

Seed Recovery Phrase vs Private Keys

Your seed recovery phrase is basically an encoded version of your private keys. Private keys prove ownership over a wallet and give permission to send funds. Private keys are extremely long strings of alphanumeric characters though, which makes them quite difficult to learn and memorize, or even write down accurately. This is why recovery phrases became popular, as you can simply write down 12-24 words to get the same effect. 

Recovery phrases didn’t always exist in crypto though, meaning there was a time where you couldn’t recover anything if you lost your device and didn’t know your private key information. This is why there are many lost Bitcoins from the early years of development.

Closing Thoughts

Seed recovery phrases are one of the better developments that ever happened in the cryptocurrency space. But because they’re so important and valuable in the sense that they can give access to an entire crypto wallet, they need to be treated with an abundance of caution when it comes to security. If you own any substantial amount of crypto, then losing your recovery phrase could be akin to losing all your money, and that doesn’t sound fun.

Article tags

Beginner
guide
Wallets
Evan Jones

Author

Evan entered the crypto scene in 2017, attracted to the many disruptive possibilities that blockchain could have on current world systems. He has a keen interest in decentralized services, payment processing, and viable NFT use cases such as event ticketing. He spends his days writing with his dog Kobe under his feet, if not on his lap.

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