December 25, 2021 -

Seed Phrase in the World of Cryptocurrency

Seed Phrase in the World of Cryptocurrency

A seed phrase is closely related to cryptocurrency wallets. When you create a mentioned wallet, the seed phrase is auto-generated for you. This component consists of random characters and is utilized by the wallet to generate private keys.

As you know, private keys are mandatory to confirm various financial operations on your e-wallet. Only this way you could make use of your digital coins on things that you need. Meaning, seed phrase is a key component of the e-wallet that lets you use your money the way you choose.

After acknowledging this detail, you can make an assumption that this component allows other users to steal your money. It is crucial to never share seed phrases with any other person. To discover more about this topic, study this article. You may unravel a few ways of securing your crypto savings. The world of crypto is as exciting as it is sometimes dangerous.

Seed Phrase in the World of Cryptocurrency

Describing the Seed Phrase

A secret recovery phrase, or seed phrase, is a combination of words. Not numbers, but words. Usually, the system generates from 12 to 24 words. This technique is used both by hardware and software wallets as a security measure.

A simple example of a secret recovery password is:

“crude poem knot cake mouth blow nerve essay flood award mine fame copy whole”

As you see, it consists of random short words rather than numbers. When creating this technology, one fact was taken into consideration. People are better at keeping in mind words rather than numbers. The human brain can make various associations, so even random words are better in this case.

However, this fact may be a bit misleading if you decide to memorize the secret recovery password. Do not rely solely on your memory otherwise, you will get in trouble. Forgetting a seed phrase means losing access to your digital funds.

Blockchain is a completely decentralized system. When it comes to losing access to your bank account, which is governed by a central authority, you can still recover your account by proving it belongs to you. It doesn’t work like that in the crypto world, and if you lose access to crypto, it’s gone without sight.

The Principle of Work of Seed Phrase

The system uses random words from the dictionary to generate a list of random words. The idea behind the principle of works is that it is nearly impossible to figure out someone else’s seed phrase when hundreds of words from a dictionary are used to choose only 12 to 24 words. Such a method enables more security.

It is possible to create a secret recovery password on your own, but don’t do it. The human brain isn’t good at creating truly random words. If you create a phrase because you want to memorize it with more ease, it’s already not random. Hackers have malicious software-seeking phrases not created randomly. You can easily lose your crypto. Instead, just use the phrase generated by e-wallet.

Safe Ways of Storing Secret Recovery Password

The first thing to note is that you have to store the seed phrase. It shouldn’t be your computer or anything connected to the Internet. Anyone can hack into your computer, phone, or tablet and steal the secret recovery phrase. Here are some ideas to store a secret password safely:

  • Writing it down on paper and storing it safely.
  • Creating several copies and storing them in different places.
  • Creating one copy and cutting it to store in different safe spots.

The most reasonable idea is to write it down on paper as soon as it’s generated. You probably already have some documents that aren’t digitized. Write down the seed phrase and keep it safely with other important documents.