Whether you are new to cryptocurrency or you have been in the system for a while, you must have heard about the term seed phrase. Seed phrases as the name suggests are phrases that you can use to recover blockchain wallets. If for example, you forgot your crypto wallet’s password, your seed phrase could come in handy in recovering your wallet. Or if you use a hardware wallet and it gets damaged, or it gets stolen, a seed phrase will come in handy during the recovery phase. In this article, you’d get to learn more about seed phrases, how they work, and how to store them safely.
What is a seed phrase?
The seed phrase also known as a mnemonic phrase or seed key is a phrase given to you during registration for a crypto wallet. The essence of a seed phrase is to give users something like a way to back up their crypto wallet. So, in case your computer breaks, or your hard drives become corrupted, you can use a seed phrase to recover blockchain wallets. A seed phrase is often a group of 12 to 24 words depending on the type of crypto wallet. These words are often random and have nothing related to you. As such, it is advisable to store these unique phrases safely as if acquired by a cyber-criminal he/she could steal your cryptocurrency.
How does the seed phrase keep blockchain wallets safe?
The way the seed phrase works is somewhat complex, however, we will try to simplify it here. When you register for a new crypto wallet, the wallet software creates a list of randomly selected words from a dictionary. And when you think about it, a Standard English dictionary has 2048 words. If 12 words are selected from it randomly, that means you can have 2048^12, which is a lot of possible combinations. In addition to this, the phrase is generated with the phrase with BIP39 which has a 132 bit of security. And with each word assigned a number, if you were to twist the second seed phrase for the first seed phrase, it would read an error. This leaves the seed phrase completely impractical to guess, thus keeping your blockchain wallets safe.
How to safely store your seed phrase?
So far, we have been talking about how great seed phrases are and how they can keep your crypto wallet safe. And in the case, you ever need to recover blockchain wallets, the seed phrase will come in handy. However, if you lose your seed phrase it could leave you completely vulnerable. For this reason, we advise users to take proper caution when storing their seed phrases. Here are three safe ideas of how you can save your seed phrase.
Write it down on a piece of paper
The first thing on our list is to write the seed phrase on a piece of paper and store it safely. By writing it on a piece of paper, cybercriminals would not be able to steal it since it is not online.
Split the seed phrase
Another trick you can do is to split your seed phrase into multiple locations. You could save the first six seed phrases in one location and the last six in another location. This reduces the risk that if someone finds where you are storing your seed phrase you wouldn’t be left completely vulnerable.
Store it in a safe
Lastly, whether you decide to store your seed phrase in a piece of paper or a pen drive, you can store it in a safe along with your other valuables.
How to use a seed phrase to recover a blockchain wallet?
Before we get into the details of how you can use a seed phrase to recover blockchain wallets, there are a few things you should know. It doesn’t matter whether you are using a hardware wallet or an online wallet, you can use your seed phrase to recover blockchain wallets. So, let’s get into the details:
Step 1: Install the software or open the website
If you are using a hardware wallet and it either got stolen or damaged, that will mean you need to buy a new one. After purchasing it, you need to install the software to begin. And if you use an online crypto wallet, simply open the wallet website to proceed.
Step 2: Navigate to restore within the password interface
After installation is complete, or you have opened the website, navigate to the page that says restore within the password interface. This will allow you to gain access to your crypto wallet through the back door.
Step 3: Input the seed phrase
On the next page, you will be prompted to input your seed phrase accordingly. Take your time to input the seed phrase in the other in which you wrote them down.
Step 4: That’s all to recover blockchain wallets
Lastly, after confirming your crypto wallet password, you are all done. Your fund should be available to you to access.
Image Source: BigStockPhoto.com (Licensed)
Disclaimer
Cryptocurrency products are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
The information on this website is provided for educational, informational, and entertainment purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose.
The information contained in or provided from or through this website and related social media posts is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice.
The information on this website and provided from or through this website is general in nature and is not specific to you the user or anyone else. You should not make any decision, financial, investment, trading, or otherwise, based on any of the information presented on this website without undertaking independent due diligence and consultation with a professional broker or financial advisory.
You understand that you are using any and all Information available on or through this website at your own risk.
The trading of Bitcoins, alternative cryptocurrencies has potential rewards, and it also has potential risks involved. Trading may not be suitable for all people. Anyone wishing to invest should seek his or her own independent financial or professional advice.
Site Disclaimer
The Content in this post and on this site is for informational and entertainment purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by HII or any third party service provider to buy or sell any securities or other financial instruments.
Nothing in this post or on this site constitutes professional and/or financial advice. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this post or on this site.
You recognize that when making investments, an investor may get back less than the amount invested. Information on past performance, where given, is not necessarily a guide to future performance.
Related Categories: Cryptocurrency, Money, Reviews
