What is a seed phrase?
Definition
A seed phrase is a collection of 12-24 words that can be used to access or restore your cryptocurrency wallet.
What is a Seed Phrase (for a crypto wallet)
A seed phrase (aka seed recovery phrase, backup seed phrase or mnemonic phrase) refers to a randomly generated list of 12 to 24 words (in a specific order) that can be used to access your private keys and thus your crypto wallet.
Note: All Digital Surge customers are provided with a free, personal wallet to safely store their crypto. Digital Surge manages your seed phrase & private keys for you – seed phrases are for those who have their own personal, external hardware wallets (e.g. a Trezor, Nano Ledger or software/desktop wallets managed by you).
Your seed phrase is given to you when you first set up your crypto wallet. It allows you to:
- Gain access to your wallet’s private keys (the code that allows you to send or spend your crypto – more on this below).
- Restore your wallet on another device should you lose access to your initial wallet.
What is a private key?
A private key can be thought of like an ATM PIN to your bank account. Your bank account has a unique PIN, which allows you to access your funds from an ATM. Similarly, your private key proves to the Blockchain that you are indeed the owner of your crypto, allowing you to send or spend it.
A private key is essentially a very long, randomly generated string of letters & numbers that looks like this:
E9873D79C6D87DC0FB6A5778633389F4453213303DA61F20BD67FC233AA33262
However, remembering and entering in such a long, complex number like this every time you want to send or spend your crypto isn’t practical so developers created ‘seed phrases’ in a more human-readable format.
These seed phrases are a representation of your private key and can be thus used to derive your private key & easily access your crypto, or restore your wallet if you need to.
Additionally, a seed phrase can generate not just one, but a huge number of private and public keys (the address where you can receive crypto), allowing users to avoid address reuse and needing to save multiple private and public keys for each crypto in their wallet. Instead, a single seed phrase can be backed up and used to access them all!
How do I keep my seed phrase safe?
Your seed phrase is the password and the backup to ALL your private keys (and thus all the cryptocurrency in a given wallet). Be sure to copy down your seed phrase EXACTLY as it is presented, and remember:
DO NOT tell anyone your seed phrase (unless you want them to have access to all your crypto).
DO NOT save your seed phrase on a computer, phone or any device that connects to the internet – not even a print file or photo!
Consider writing down your seed phrase on paper or stamping it into metal before storing it in a very safe location.
Having more than one copy of your seed phrase stored in a highly secure location is recommended.
One seed phrase, many keys
A crypto wallet can contain many cryptocurrencies and many private and public keys. Seed phrases are not cryptocurrency-specific. A single seed phrase can be used to access thousands of cryptocurrencies, meaning all you need to remember is your seed phrase in order to recover an entire wallet/portfolio of different coins.
If you’re using a hardware wallet and you happen to lose it, you can use your seed phrase (which you should’ve backed up when setting the wallet up) to restore your wallet on a different device. If there is one thing you need to safeguard and be on top of, it’s your seed phrase!
Key Takeaways
- Your seed phrase is like a master key which gives you access to all the private keys & cryptocurrency in a wallet
- Your seed phrase can be used to derive your private & public keys. With the private key, you can spend & send your crypto
- If you lose your seed phrase, you lose access to your funds
- If you lose your hardware wallet, you can import your seed phrase into a new wallet & restore your funds
- Seed phrases are derived from your wallet’s private keys but are a lot easier to remember & backup
Did this answer your question?
Digital Surge is the easiest way for Australians to buy, sell & store over 250+ cryptocurrencies. With extremely low fees, a uniquely user-friendly interface and a customer-support team you can rely on, getting involved in crypto has never been easier. Sign up today and enjoy safe, stress-free trading.
Crypto-curious? The time you spend here will be the best investment you ever make.
Tell me more...
What are other names that a seed phrase can go by?
The following terms are interchangeable but all refer to the same thing.
- Recovery phrase
- Mnemonic phrase
- Mnemonic code words
- Mnemonic seed
- Seed words
- Backup seed
- BIP39 seed phrase
How are seed phrases generated?
A seed phrase is simply a representation of a random number in the form of a string of words. This randomly-generated string of words is cryptographically derived from a wallet’s private key and paired with 12,18 or 24 words from a list of 2,048 English words called the BIP39 Wordlist.
Where can I find my seed phrase?
Usually, you’re asked to back up a copy of your seed phrase when you first set up your wallet. If you have already set up your wallet but don’t have your seed phrase, there is usually a way to find or export your seed phrase through your wallet.
What happens if I lose my seed phrase?
If you have lost your seed phrase but are able to log into your wallet with your password, you can find/export your seed phrase through the wallet. However, if you are unable to get into your wallet and no longer have your seed phrase, you will not be able to access your wallet – which is why keeping your seed phrase backed up in multiple locations is crucial!
What are some extra precautions to keep my seed phrase safe?
While most people opt to write their seed phrase down on a piece of paper, some prefer to engrave the phrase on a titanium or metal plate in case their house burns down. You can never be too careful with your money.
Another technique is to split your seed phrase into a few different parts and store each part in a different location, which is another common way of adding an extra level of security to your crypto stash. Learn more about staying safe with crypto here.
Should I give my seed phrase to anyone?
NEVER give your seed phrase to anyone unless you want them to have access to your crypto. Keep in mind that if you do tell someone, they could also have it stolen from them, resulting in the loss of YOUR funds.
Also be vigilant of online scams – there are impostors and scammers online that will ask you for your password, seed phrase or private keys in some get-rich-quick-scheme but you should NEVER disclose this information to anyone – especially someone online that you don’t know!
What should you do if your seed phrase is compromised?
If you think your seed phrase has been stolen or compromised, we recommend immediately withdrawing all your cryptocurrency to a different wallet. The seed phrase lets anyone access and move all your funds, so it is best to move them as soon as you realise your seed phrase has been compromised.
How to import a seed phrase into a hardware wallet?
You can access your crypto through a hardware wallet by importing your seed phrase. Here’s a quick guide on how to do that for the two most popular hardware wallets.
How to Import Your Seed Phrase on Ledger: https://support.ledger.com/hc/en-us/articles/360005434914-Restore-from-recovery-phrase
How to Import Your Seed Phrase on Trezor: https://wiki.trezor.io/User_manual:Recovery
Did this answer your question?
Digital Surge is the easiest way for Australians to buy, sell & store over 250+ cryptocurrencies. With extremely low fees, a uniquely user-friendly interface and a customer-support team you can rely on, getting involved in crypto has never been easier. Sign up today and enjoy safe, stress-free trading.
Crypto-curious? The time you spend here will be the best investment you ever make.
Enjoy effortless trading today
- ACN 620 473 109
- © 2021 Copyright Digital Surge
- ACN 620 473 109
- © 2021 Copyright Digital Surge
