What Is a Seed Phrase? A Guide to Wallet Recovery

What Is a Seed Phrase? A Guide to Wallet Recovery

Updated

A seed phrase is an ordered set of words used to back up a compatible cryptocurrency wallet. You may also see it called a recovery phrase or wallet backup. Understanding what those words do makes it easier to protect them without confusing the backup with the wallet itself.

Your wallet, your recovery words and your backup

  • The wallet manages the keys used to authorize transactions. It may be a hardware device or software.
  • The recovery phrase is recovery information generated during the wallet’s setup. A compatible recovery process uses it to recreate access to the associated wallet.
  • The physical backup is the paper, metal or other medium on which you record those words.

Crypto Seed Bank® belongs in the third category. It is a set of steel cards for recording your recovery words. It does not generate a wallet, sign transactions or connect to a blockchain. For more on the underlying terminology, see Ledger’s explanation of recovery phrases.

Why the words and their order matter

BIP39 is one widely used recovery standard. It defines phrases of 12, 15, 18, 21 or 24 words, selected from a defined word list. The words encode information generated by the wallet; they are not a sentence you should invent yourself. Changing their order or translating them can produce a different result or an invalid phrase. See the BIP39 specification.

Keep the exact words your wallet gives you, in the exact order. A translated website or instruction guide does not mean you should translate your recovery words.

Does every wallet use the same format?

No. Some wallets use different recovery standards. For example, Trezor documents both BIP39 and SLIP39 backups; a 20-word SLIP39 share is not simply a shorter BIP39 phrase. Check the format used by your particular wallet instead of assuming that any list of words works with any device. Trezor explains these formats here.

Crypto Seed Bank® has room for up to 24 recovery words per card and is designed around the English BIP39 word list. Check the word format and layout before engraving.

Is a recovery phrase the same as a PIN?

No. A device PIN controls access to that device. Recovery words serve a different purpose and need their own protection. If your wallet uses an additional passphrase, restoring the corresponding wallet also requires the correct passphrase. Keep a recovery plan for that information too; the words alone may not be enough.

Where a steel backup helps

With Crypto Seed Bank®, you place one card over the other and trace the integrated letter stencils using the included tungsten tipped pen. The words are scratched into the steel rather than written in ink. You then swap the cards to make a second copy.

Steel is a storage medium, not an access control. Someone who can read your recovery information may be able to use it. A durable card still needs private, secure storage.

Next, read our paper versus metal comparison or follow the seed phrase storage checklist. Before using the kit, watch the engraving instructions.

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