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Trading Glossary

Seed Phrase

Basics

What it means

A series of 12 or 24 human-readable words that can regenerate your entire cryptocurrency wallet and all its private keys. Also called a "recovery phrase" or "mnemonic phrase".

Example

A sample seed phrase: "abandon ability able about above absent absorb abstract absurd abuse access accident". This single phrase can restore all your wallet accounts.

Mistake beginners make

Beginners often type their seed phrases into websites, take photos of them, or store them in cloud documents. These are easily stolen by hackers. Store your seed phrase offline, on paper or metal, in a secure location.

Related terms

  • Wallet — A tool (software or hardware) that stores your cryptocurrency private keys, allowing you t…
  • Private Key — A secret cryptographic key that allows you to spend or transfer cryptocurrency from your w…

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