A seed phrase, also known as a 12 word phrase blockchain recovery method, is your ultimate fallback for accessing your crypto keys. If you ever lose access to your crypto wallet, the blockchain recovery phrase can help you regain entry.
However, if the seed phrase is lost, your crypto assets are gone too. Therefore, safeguarding your seed phrases is a vital part of managing your crypto securely in a self-custody system.
In this guide, we’ll explain what a seed phrase is and share best practices for handling it.
What is a Blockchain recovery phrase?
Whenever someone creates a crypto wallet, a series of numbers, known as a seed, is generated. From this seed, the wallet software produces a 12 word phrase blockchain or a 24-word equivalent, with each word linked to a specific number in the seed.
This blockchain recovery phrase serves as a crucial tool for wallet access and recovery. A seed phrase might appear like this:
1 house 2 stadium 3 pantry
4 cable 5 tires 6 waffle
7 brick 8 shoe 9 remote
10 sword 11 magic 12 offenseNever share your seed phrase with anyone. If someone asks for it, consider it a scam attempt.
What happens if I lose my recovery phrase?
Losing your seed phrase means losing access to your wallet and the crypto associated with those keys.
This is a risk inherent in any self-custody setup. However, with self-custody, you are not dependent on a third-party custodian to manage your funds or grant you access when needed.
The blockchain recovery phrase acts as a critical layer of security. It cannot be bypassed, ensuring that no one can access your wallet without it. Although the risk of losing your 12 word phrase blockchain is real, there are many methods to protect and secure your seed phrases effectively.
Recovery phrase vs. private key
Although both a private key and a seed phrase are crucial components of your crypto wallet, they serve different purposes.
A private key is a string of numbers and letters that enables users to sign transactions digitally, it might look something like this:
a3c1f847aabf9472e6b0340c6e7abf7c5a22e84a8b6e37c53f4b7f85f779fa78In contrast, the blockchain recovery phrase, commonly known as the 12 word phrase blockchain, links your crypto to a specific wallet on the blockchain.
It’s vital to keep both your private key and seed phrases secure. If someone gains access to your seed phrase, they can enter your wallet, and with your private key, they could withdraw any funds stored there.
Keep your phrase secure
Each time you create a wallet, you’ll receive a seed phrase unique to that wallet. If you have multiple wallets, you’ll end up with multiple seed phrases. Many crypto users commonly spread their assets across various wallets to minimize the risk of losing everything if one wallet is compromised.
However, there are some key methods you should avoid when storing your 12 word phrase blockchain or any blockchain recovery phrase to ensure they remain secure.
In your memory. People often forget things, and if you have multiple wallets, recalling your blockchain recovery phrase in the correct order for each one can become overwhelming.
On any device. Whether it’s the notes section of your phone, a file on your computer, or even a USB drive—none of these are safe places to store your seed phrase. If a device is internet-connected, the information stored on it is vulnerable to theft.
On the cloud. While it’s possible to store your 12 word phrase blockchain on the cloud, it’s not advisable. Storing sensitive data on the cloud exposes it to attacks from a wide range of malicious actors. Since cloud data is connected to the internet, it is more susceptible to cybercriminals targeting it.
Physical storage methods are the most reliable, and the simplest approach is to write down your phrase as soon as it’s created. While writing your blockchain recovery phrase down is the bare minimum, here are some additional effective methods to securely store your 12 word phrase blockchain:
Lockbox or safe. Once you’ve written down your seed phrase, make sure to store it in a secure place—like a safe. You can find lockable file boxes or small safes in many retail stores or online, with many of them offering waterproof and fire-resistant features.
Safe Deposit Box. A safe deposit box at a bank can be an excellent choice for storing your blockchain recovery phrase. However, it does come with a recurring cost. This option is especially useful if you plan to leave crypto in a will, as you can provide the safe deposit box details in the legal documents instead of the actual 12 word phrase blockchain.
Durable materials. Several services allow you to engrave or etch your seed phrases onto durable materials like stainless steel. Since paper can be damaged by water, fire, or pests, using a more resilient material ensures that your phrase remains intact through difficult conditions.
FAQs
What is a seed phrase?
A seed phrase is a series of words generated by your cryptocurrency wallet, which serves as a backup to recover your funds in case your wallet is lost or corrupted. It acts as the master key to access your blockchain assets.
What is a blockchain recovery phrase?
A blockchain recovery phrase is essentially another term for a seed phrase. It allows you to recover your wallet and access your blockchain assets, even if your original wallet or device is lost, stolen, or damaged. It’s crucial to store this phrase securely.
What is the significance of a 12-word phrase in blockchain?
A 12-word phrase blockchain refers to a standard recovery method where your wallet’s private keys are represented by a 12-word sequence. These 12 words are generated using a cryptographically secure algorithm and are essential for restoring access to your wallet.
How do I use my seed phrase to recover my wallet?
To recover your wallet, you simply input your seed phrase into a compatible wallet application. This will regenerate your private keys, allowing you to access your blockchain assets.
How should I store my 12-word phrase?
Your 12-word phrase should be stored in a secure and private location. Avoid saving it digitally on your devices or online, as this could expose it to hackers. Consider writing it down and keeping it in a safe, offline location.
