What Is a Seed Phrase? How to Secure Your Recovery Phrase
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What Is a Seed Phrase? How to Secure Your Bitcoin Recovery Phrase
Self-custody is one of the fundamental principles of Bitcoin, and the seed phrase is its core component. Losing a seed phrase can result in permanent loss of your bitcoin.
In this guide, we’ll explain what a seed phrase is, how it works, why it is key to self-custody, how to store your seed phrases, and how you use them to recover your bitcoin.
TL;DR
- A Bitcoin seed phrase is a list of 12 to 24 words that gives you full access to your Bitcoin wallet.
- It’s important to keep your Bitcoin seed phrase safe and offline to protect your assets from security threats.
- You should never share your Bitcoin wallet seed phrase with anyone.
What Is a Bitcoin Seed Phrase?
A Bitcoin seed phrase, also known as a mnemonic phrase or recovery phrase, is a list of 12 to 24 words that Bitcoin wallets generate during the setup process.
You need to store your Bitcoin wallet’s seed phrase securely so that you can use it to regain control of your BTC in the event the wallet is damaged or lost.
A generator randomly picks words from a list and creates a unique recovery phrase, which you can use to securely back up and restore your Bitcoin wallet as your master key.
While a 12-word Bitcoin seed phrase is common and offers sufficient security for most users, a 24-word Bitcoin wallet seed phrase provides enhanced security, especially for those holding large amounts of BTC.
Most self-custody Bitcoin wallets require you to write down your secret recovery phrases and store them securely offline. Remember, anyone who knows or has access to your seed phrase can access your bitcoin.
“Securely storing your seed phrase is more than just good practice. It is what empowers true bitcoin self-custody. Taking responsibility for your seed eliminates any dependency on third parties and allows you to take and have full control of your digital assets,” says Tony Yazbeck, co-founder at The Bitcoin Way.
How Does a Seed Phrase Work?
Self-custody Bitcoin wallets typically generate a recovery phrase for users during setup. Once generated, the seed phrase is shown to the user with instructions to write it down and store it securely.
Bitcoin seed phrases are human-readable forms of a binary seed created using the BIP-39 standard.
BIP39-compliant seed phrases follow a standard that works across multiple wallets, allowing users to restore their Bitcoin on any compatible wallet. This provides greater flexibility and makes switching or recovering wallets much easier.
A Bitcoin recovery seed phrase usually consists of 12 or 24 words, randomly chosen from a fixed list of 2,048 English words. This seed phrase serves as the master password for your BTC wallet. Each Bitcoin wallet has one seed phrase, which is used to generate a unique set of private keys, which in turn you can use to sign transactions.
The order of the words is important as swapping just one or two words creates an entirely different seed, leading to a different wallet.
Moreover, because the words are selected from a list of 2,048 words, the randomness of the phrase is what makes it secure, as it’s nearly impossible to guess a random list of 12 words. This protects your Bitcoin wallet from brute force attacks.
For example, here’s a list of 12-word seed phrases that we’d like to use to restore access to a BTC wallet: celery, canyon, truck, cave, drift, blue, chip, plant, plateau, block, window, custom.
To recover your Bitcoin wallet using a seed phrase, simply download and install the wallet on your new device, then select the option to restore an existing wallet. Next, you enter the 12-word seed phrase in the exact order. This will automatically restore access to your BTC wallet, giving you access to your Bitcoin.
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Your Seed Phrase Is the Key to Bitcoin Self-Custody
With Bitcoin self-custody, you, and only you, control your bitcoin.
Your recovery phrase is the master key that unlocks access to your private keys, allowing access to your digital assets. That means that there’s no third party involved, and you are responsible for your own funds.
Moreover, your seed phrase is the only way you can recover your BTC if your Bitcoin wallet is damaged or lost. As such, you have to store it securely.
However, while your Bitcoin wallet seed phrase enables self-custody, that control is both a strength and a risk.
On one hand, it gives you full control of your funds, but on the other hand, if you lose your recovery phrase and don’t have a backup, you can permanently lose your bitcoin.
Nonetheless, using a seed phrase is safer than keeping your Bitcoin on a centralized exchange, because it means you fully own and control your funds. When you store your digital assets on an exchange, the platform, not you, holds the keys to your bitcoin. If the exchange is hacked or shuts down, you risk losing access to your BTC.
How to Recover Bitcoin With a Seed Phrase
If you lose access to your Bitcoin wallet, you can restore the wallet using your recovery phrase. Here’s how:
Install a wallet application
Download and install a Bitcoin wallet that supports BIP39 recovery phrases
Choose ‘Import Wallet’ or ‘Restore Wallet’
During the setup process, select the option to import or restore an existing wallet.
Enter your seed phrase
Carefully type in your 12, 18, or 24-word Bitcoin wallet recovery phrase in the exact order you wrote it down. Entering even one incorrect word or using the wrong order will prevent you from recovering your wallet.
Set a new password or PIN
Depending on the wallet, you might be prompted to set a new password or PIN for added security.
Access your digital assets
Once recovered, your Bitcoin wallet will restore your private keys, addresses, and your BTC will be displayed as long as it is still in those addresses.
5 Best Practices For Securing Your Seed Phrase
Now, let’s take a look at the most important seed phrase management best practices you should follow to make sure your Bitcoin security is rock-solid.
- Back up your seed phrase: Always back up your Bitcoin seed phrase to ensure you don’t lose access to your BTC wallet.
- Consider offline storage: The best way to store your seed phrase is offline using a Bitcoin seed phrase metal plate that is both fireproof and waterproof. Keeping your recovery phrase offline protects it against common security threats.
- Make multiple copies: Consider making two to three copies of your Bitcoin seed phrase metal plate and storing them in separate locations, e.g., a safe deposit or a home safe, etc., as a single copy can get damaged, lost, or stolen.
- Never share your seed phrase: Never share your Bitcoin wallet seed phrase with anyone.
- Never save your seed phrase digitally: Never save your recovery phrase in any digital format, such as on a computer, cloud storage, email, on your phone, or even as a screenshot, as these are susceptible to online threats.
Common Seed Phrase Mistakes You Should Avoid
Securing your Bitcoin wallet seed phrase is only half the battle. Avoiding common mistakes associated with seed phrases is just as important.
Simple mistakes, such as saving it digitally or storing it in an insecure manner, can result in the permanent loss of your digital assets. Understanding these common seed phrase mistakes will help you keep your BTC safe.
Let’s look at three common Bitcoin seed phrase mistakes to avoid.
Failing to back up your seed phrase correctly
Perhaps the most common seed phrase mistake people make is failing to back up their seed phrase properly. This means failing to do so during setup or writing down the seed phrase incorrectly, leaving you unable to recover your Bitcoin wallet.
Not verifying the accuracy of your seed phrase
Not verifying your Bitcoin seed phrase can have serious consequences. Always double-check each word when you first create or receive your seed to ensure it’s accurate and in the correct order.
Storing your seed phrase digitally
Another big mistake is failing to store your seed phrase offline. A seed phrase is critical to accessing your Bitcoin wallet and should never be stored digitally. Saving it on your cloud storage, computer, or phone exposes it to certain security threats.
Get Your Self-Custody Setup Right With The Bitcoin Way
If you want to securely store and recover your Bitcoin wallet seed phrase, it’s best to consult professionals who have built the capacity over time. This will help you avoid common mistakes and oversights.
The Bitcoin Way offers personalized guidance on how to properly back up and securely store your Bitcoin seed phrase.
FAQs
What is the difference between a seed phrase and a private key?
A seed phrase is the master key required to create, back up, and recover an entire Bitcoin wallet, including multiple private keys. On the other hand, a private key is akin to a digital signature that permits you to manage or send your BTC and is linked to a single wallet address.
How do I get a seed phrase?
A Bitcoin seed phrase is usually generated by creating a new Bitcoin wallet using a hardware or software wallet application. The wallet will generate a unique 12 to 24-word seed phrase from a selection of 2,048 predefined words that you must carefully write down and store offline.
What happens if someone gets my seed phrase?
If someone gets your Bitcoin seed phrase, they can take full control of your wallet and funds. This means they can access all your digital assets, transfer your funds without your permission, and empty your wallet.
How long is a Bitcoin seed phrase?
A Bitcoin seed phrase is a sequence of 12 or 24 words randomly generated from a list of 2,048 predefined words that serve as a backup to your Bitcoin wallet’s private keys. The words are based on the BIP39 standard, with each option providing a good balance between ease of use and security.
Can I use my seed phrase on any wallet?
Bitcoin wallet seed phrases are usually compatible across wallets that adhere to the BIP39 standard. This means you can use only your seed phrase on a Bitcoin wallet that is compatible with the BIP39 standard.
Can I change my seed phrase?
No, you can’t change your seed phrase once it has been generated. Bitcoin seed phrases are immutable, meaning they can’t be modified or changed once created. However, you can generate a new Bitcoin wallet seed phrase by creating a new Bitcoin wallet and transferring your funds to the new BTC wallet.