A seed phrase is a list of words, usually twelve or twenty-four, that backs up and controls a self-custody wallet. It is the single most important thing to protect, because anyone who has it can move your funds, and no one can recover it for you if it is lost.
Why it is so important
With self-custody there is no company holding your account and no password reset. The seed phrase is the master key. That is powerful, because no one can freeze your funds, and it is unforgiving, because no one can restore them if you lose the phrase.
The seed phrase is the money. Write it on paper, store it offline where only you can reach it, and never type it into a website or take a photo of it.
If you use a processor
Custodial processors manage keys for you, so you may never handle a seed phrase. In that case, protect your account login instead, with a strong password and two-factor authentication.
Common misconceptions
- That a seed phrase is like a password you can reset. It cannot be reset or recovered.
- That storing it in a photo or note app is fine. That exposes it to anyone who reaches your device or cloud.
Things to avoid
- Typing your seed phrase into any website. Legitimate tools never ask for it.