What is a seed phrase?
If you own cryptocurrencies or want to store them in a wallet, you will inevitably come across the term seed phrase. This sequence of words forms the key to your digital assets. Without these words, access to your cryptocurrencies is impossible. That is why it is crucial to understand what a seed phrase is, how it works, and how to store it securely. A seed phrase is literally your access to your crypto wallet. Anyone who knows the words can restore your wallet and gain access to all stored coins. That is why it is essential to store your seed phrase carefully, offline and out of reach of others.In short
- A seed phrase is a series of 12 to 24 words that gives access to your crypto wallet.
- It is also called a recovery phrase, because it allows you to restore your wallet.
- The words are randomly generated using the BIP39 standard, making every seed phrase unique.
- Anyone who knows your seed phrase has access to your cryptocurrencies.
- It is important to store your seed phrase offline and securely.
- Coinmerce emphasizes security and helps users understand how to protect their seed phrase properly.
What is a seed phrase?
A seed phrase (also called a recovery phrase) is a sequence of 12, 18, or 24 words that you receive when creating a crypto wallet. These words are generated in a specific order and serve as a backup for your private keys. The seed phrase is the only way to restore your wallet if you lose your phone, computer, or password. Without these words, you cannot recover your cryptocurrencies—there is no “forgot password” option like with traditional accounts. In other words: your seed phrase is the ultimate key to your crypto.Understanding seed phrases
What a seed phrase is and is not
A seed phrase is not the same as a password or PIN. A password protects access to an account with a specific service, while a seed phrase represents cryptographic access to your digital assets themselves. What it is:- The source of all private keys used by your wallet.
- A universal code that allows you to restore your wallet on any device.
- Independent of a single provider—you can use the same seed phrase in different wallets that support the same standard.
- A login method you share with others.
- A code you should enter online or store in email.
- Something your provider (such as Coinmerce) stores for you.
Difference between a seed phrase and a private key
A private key is a long string of numbers and letters linked to a specific cryptocurrency address. It is used to sign transactions and prove ownership. A seed phrase is a user-friendly representation of these keys. Instead of dozens of random characters, you receive a list of words that are easier to write down. The seed phrase can then regenerate all your private keys through a mathematical algorithm. You can think of it like a tree: the seed phrase is the seed from which all branches (private keys) grow.The BIP39 standard
What is BIP39?
BIP39 stands for Bitcoin Improvement Proposal 39. Introduced in 2013, it defines a universal way to convert private keys into words. Thanks to BIP39, most modern wallets use the same method to generate seed phrases. BIP39 uses a fixed list of 2,048 words. Through a combination of randomness and cryptographic hashing, your seed phrase is created from 12 to 24 words selected from this list. This results in a system that is:- Easy to write down;
- Not dependent on a specific wallet provider;
- Still cryptographically secure.
Why almost all wallets use this standard
Because BIP39 is universal, you can restore your wallet with the same seed phrase in almost any other wallet that supports this standard. This means you are not locked into a single app or provider. Whether you use a hardware wallet, mobile wallet, or software wallet—as long as it supports BIP39, you can use your seed phrase to recover your crypto.Generating a seed phrase
How the words are randomly generated
When you create a new wallet, the system generates a random sequence of bits—a kind of digital fingerprint. These bits are then translated into words using the BIP39 word list. Because the combination of 12 to 24 words has billions of possible outcomes, it is practically impossible for two people to receive the same seed phrase. This randomness ensures security: no one can guess or duplicate your wallet.Why every seed phrase is unique
Each seed phrase represents a unique cryptographic key. Even a single different word results in a completely different wallet. That is why it is crucial to write down the words in the exact correct order. A misspelled word or incorrect order can mean losing access to your crypto.When do you use a seed phrase?
A seed phrase is not something you use daily. You only need it in specific situations, such as:Restoring a wallet
If your device is lost, stolen, or damaged, you can use your seed phrase to restore your wallet on a new device. This ensures continued access to the same addresses and balances.Importing a wallet on a new device
Want to access your crypto wallet on another device, such as your laptop instead of your phone? You can enter the seed phrase into the same or a compatible wallet.Loss of login credentials
If you lose access to your wallet app, for example due to a forgotten PIN, the seed phrase is the only way to recover your crypto.Storing your seed phrase securely
The most important rule: your seed phrase should never be online. Anyone who obtains these words has full access to your cryptocurrencies. Secure storage is therefore essential.Offline storage
Write your seed phrase down on paper and store it in a safe, dry place. Avoid photos, screenshots, or digital documents. Hackers can access files on your computer or cloud, even if they are protected. For extra security, you can use a metal backup plate that is resistant to fire and water damage.Physical backups
Consider making two physical copies of your seed phrase and storing them in separate locations, such as a safe or a fireproof box. This reduces the risk of total loss due to fire or theft.What you should never do
- Never share your seed phrase with anyone, including customer support or via email.
- Never enter your seed phrase on unknown websites or apps.
- Never store the words in screenshots, notes, or cloud storage.
What to do if your seed phrase is lost or stolen
When recovery is still possible
If you still have access to your wallet (for example via your app or hardware wallet), you can create a new wallet and transfer your crypto. This prevents anyone with your old seed phrase from gaining access.When crypto is permanently lost
If you have no backup and have completely lost your seed phrase, recovery is unfortunately impossible. Because blockchain transactions are decentralized, there is no central authority that can restore access. That is why prevention is critical: write down your seed phrase carefully and, if possible, test whether you have stored the words correctly.Frequently asked questions
What is a seed phrase?
A seed phrase is a sequence of 12 to 24 words that gives access to your crypto wallet. It serves as a backup that allows you to restore your wallet if your device is lost or stops working.How does a seed phrase work?
The seed phrase contains all the information needed to regenerate your private keys. When you enter the words into a compatible wallet, your wallet is fully restored, including addresses and balances.What is an example of a seed phrase?
An example (do not use!) is:apple ladder tuna beach metal cherry window peace rocket hill butter moonEvery seed phrase is randomly generated and unique to your wallet.
