Glossary

Seed Phrase

A seed phrase is a list of ordinary words, usually 12 or 24, that encodes the master secret from which a wallet derives all of its private keys and addresses. Anyone who has the phrase can recreate the entire wallet, so it functions as both the ultimate backup and the ultimate vulnerability.

Most wallets follow the BIP-39 standard, which draws the words from a fixed list of 2048 English words. For example, a new hardware wallet might display 24 words such as ladder, ocean, canyon and so on; you write them down in order, and if the device later breaks, entering those same words into a new compatible device restores access to every coin and token, because the funds themselves live on the blockchain, not in the device.

The cardinal rules follow directly from this power. Never type the phrase into a website, app, or form, because no legitimate service ever asks for it; requests for a seed phrase are the signature move of scammers. Store it offline, on paper or metal, in a safe place, and never as a photo or cloud note. A common misconception is that a seed phrase is like a password that can be changed; it cannot, so if it leaks the only remedy is moving funds to a brand-new wallet.