crypto
Seed Phrase
A seed phrase is a list of 12 or 24 common words that encodes a crypto wallet's master private key. Anyone holding the phrase controls the funds; losing it (with the wallet) means the funds are gone permanently.
Example
A 24-word phrase has 256 bits of entropy — guessing one is computationally impossible.
Seed phrases (BIP-39 standard) let you restore an entire wallet on any compatible device. They are the single point of failure in self-custody: write the words on paper or steel, store them securely offline, and never photograph them, type them into a website, or share them — every "support agent" who asks for a seed phrase is a thief.
Related terms
- Cold Storage
- Cold storage keeps cryptocurrency private keys on a device that never touches the internet — typically a hardware wallet — making remote theft practically impossible. It's the standard for securing long-term holdings.
- Self-Custody
- Self-custody means holding your own cryptocurrency private keys rather than leaving coins on an exchange. You gain immunity from exchange failures, at the cost of being solely responsible for security and backups.
Frequently asked questions
What is Seed Phrase?
A seed phrase is a list of 12 or 24 common words that encodes a crypto wallet's master private key. Anyone holding the phrase controls the funds; losing it (with the wallet) means the funds are gone permanently.