What is a seed phrase

We can define it as a series of randomly generated words, acting as a kind of “master password” that will allow you to restore or access your digital wallet.

This phrase is unique for each wallet.

So, understanding how it works is essential to protect your digital assets.

Why is it important?

Imagine you lost access to your wallet due to a variety of relatively common factors such as a technical error, theft or simply forgetting it.

In any of these scenarios, you will need the seed phrase in order to recover your cryptocurrencies.

Why?

Well, keep in mind that, in this world, cryptos are not controlled by any central entity.

There is no customer service or any institution that can help you.

The phrase works as a single backup.

How does it work?

When creating a wallet at the software level or on a physical device, the system automatically generates a seed phrase.

The extension has a range of 12, 18 and 24 words chosen randomly from a predefined set, known as BIP 39 (Bitcoin Improvement Proposal).

These words are selected from a list spanning 2048 standard words, ensuring that their generation is unrepeatable.

Apart from access to funds... If you lose or damage the device where it was stored, when you enter the words in a new device or compatible wallet, you will recover the total of your assets.

How to protect it?

There are many protection alternatives, one more efficient than the other, but we are only going to mention them, we will not go into details.

Physical storage

This involves writing down the phrase on a piece of paper or writing it on a base plate and then storing it in a place that is considered “safe” for the user.

Safes are a good option.

Mobile devices and computers are also considered as physical storage; however, you should keep in mind that they can be hacked.

Use of cold storage devices

Cold storage devices are among the most secure methods, as they do not require connecting to the internet to function, significantly reducing the risk of theft by cybercriminals.

As a seed phrase protector, cold devices are the most widely used by users due to their efficiency, functionalities and high level of security.

Redundant backups

It is advisable to make backups in different locations.

However, you should not have too many copies to prevent someone with access to them from getting the key to your capital.

Encryption

Use outstanding encryption tools and never store the seed phrase on platforms without encryption.