A Seed Phrase is a series of 12 or 24 random words that provide the information needed to recover a lost or damaged cryptocurrency hardware wallet. It is also called a mnemonic phrase and is best understood as a security measure for crypto that is stored in private key. These seed phrases are often stored on a so-called seed phrase backup these days.
For recovery, both 'hot' and 'cold' Hardware Wallets can use a Seed Phrase. Ellipal , Keystone , Trezor and Tangem are Wallets that we sell at Cryptoken and they all use Seed Phrases for recovery.
The seed phrase corresponds to the master password. A hardware wallet can be compared to a password manager for crypto. It gives access to all cryptocurrencies associated with the hardware wallet that generated the seed phrase, even if the wallet is deleted or lost, as long as the seed phrase is accessible.
What does a Seed Phrase look like?
A Seed Phrase is a long string composed of a collection of random terms. The generated words come from a catalog of 2048 words. The words in a Seed Phrase are simplified so that the user can remember them, unlike if the phrase consisted of long numbers or special characters.
The seed phrase consists of 12 to 24 words , such as vitality, road, or open. To avoid errors, these randomly generated words do not contain “man” and “men” in the same source phrase. In 2013, the Bitcoin Development Proposal-39 introduced these terms and established a standard for deterministic wallets. Here is a fictional 12-word Seed Phrase : Cry, planet, loose, typical, humanity, child, anxiety, difficult, never, alternative, regret..
All Private Keys associated with a deterministic hardware wallet are controlled by the Seed Phrase . The BIP-39 proposal makes major wallets interoperable, allowing users to transfer their recovery phrase to a new BIP-39 compliant hardware wallet if they lose their hardware wallet or want to switch hardware wallets.
Seed phrase vs. Private Key
Although they are related, the seed phrase and private key are different. Both are used to secure cryptocurrency hardware wallets. A seed phrase is a recovery password for a crypto hardware wallet. The seed phrase is used to recover a cryptocurrency hardware wallet in case the owner forgets his password. On the other hand, a private key is used to point to a blockchain address and secure transactions with it. A private key is used to prove ownership when making cryptocurrency transactions.
A seed phrase is essentially the master key for all crypto accounts controlled by the user. These words give access to any Private Key stored in the original hardware wallet. The goal is to have complete control over crypto. This phrase allows users to access blockchain crypto even if a physical hardware device is lost or damaged.
What is the importance of a Seed Phrase?
Protection against loss and theft:
Seed Phrases provide a fail-safe mechanism to restore access to crypto in the event of device loss, damage, or theft. By securely storing the Seed Phrase , users can restore their wallets on new devices, ensuring continuity and reducing the risk of irreversible losses.
Easy-to-use backup solution:
With the rise of user-friendly cryptocurrency wallets, Seed Phrases have become a convenient backup solution for users. By relying on human-readable words instead of complex cryptographic keys, these phrases simplify the process of securing and recovering access to wallets. This accessibility allows users to take control of their crypto without relying too much on technical expertise.
Robust encryption:
Seed Phrases use advanced cryptographic algorithms, allowing users to securely encrypt and decrypt their data. The strength of this encryption, combined with the randomness of the words used in the Seed Phrase, provides an additional layer of protection against brute-force attacks and other malicious activity.
How do you keep your Seed Phrase safe?
It is crucial to keep your Seed Phrase safe by purchasing a titanium variant, for example, so that you are assured that your Seed Phrase will not be lost due to fire or fading. Below are the Cryptoken seed phrase backups highlighted:
The Cryptotag kit includes everything you need to immortalize your titanium plate, including a high-quality center punch, matches, earplugs, a detailed installation guide, and a BIP39 glossary. The installation process is simple and straightforward, allowing you to have your plate ready in just a few steps.
The Ellipal Seed Phrase Steel is the new and steel variant of the Mnemonic Metal . This backup is the perfect seed phrase backup for your Ellipal Titan or Ellipal Titan mini .
The Keystone Tablet is durably constructed from stainless steel and is resistant to heat, water damage, and corrosion. Manage your crypto portfolio safely and easily with the Keystone Tablet Backup.
