Seed Phrase
A seed phrase is a list of 12 or 24 words that can restore a wallet and all its keys — anyone who sees it can take the funds, so it must never be shared.
When you create a self-custody crypto wallet, it shows you a list of words once. That list is the master backup of every key in the wallet. Lose it and a broken phone can mean lost funds; leak it and a stranger can empty the wallet from anywhere in the world.
- Category
- Cryptocurrency and Blockchain
- Reading time
- 4 min
- Also called
- Recovery phrase, Secret recovery phrase, Mnemonic phrase
- Updated
A seed phrase in plain words
The seed phrase is a human-readable backup of your wallet’s keys. Type it into a compatible wallet and the same keys, and the same funds, come back.
Most wallets show a seed phrase when you set them up, and keeping a safe written copy is usually the only way to get the wallet back.1
Because it controls the wallet, a legitimate company will not ask for it: Kraken, for example, lists sharing your seed phrase among the things it will never ask you to do.2
The provider usually cannot see, recover or replace it for you, so the backup is your job alone.3 See Counterparty Risk for the trade-off with custodial accounts.
How to protect a seed phrase, step by step
Create it privately
Set up the wallet where nobody can see your screen.
Write it down in order
Copy every word in the exact order shown and check the spelling.
Keep it offline
Store the phrase somewhere private and offline — not in screenshots, email or messages.3
Store a second copy
Keep a backup in a separate safe place, such as paper or metal.
Never type it into websites
Only enter it into the wallet itself when restoring.
Treat requests as scams
Anyone asking for your phrase — even ‘support’ — is trying to steal from you.2
Worked examples
Example 1 — Restoring after a lost phone
Funds restoredYour phone with a $1,500 wallet breaks. You have the phrase written down.
| Before | $1,500 on the old phone |
| After restore | $1,500 in the new app |
The funds were never on the phone — the phrase recreated the keys that control them.
Example 2 — A fake support chat
Up to −$3,000Someone posing as support asks for your 24 words to ‘fix’ a $3,000 wallet.
| Shared phrase | Wallet can be copied by the scammer |
| Funds at risk | $3,000 |
A real company will not ask for your seed phrase, so the request itself is the warning sign.2
Example 3 — Two copies, one lost
Access keptYou keep 2 paper copies in different places. A flood destroys 1.
| Copies left | 2 − 1 = 1 |
| Access | Kept |
Offline copies in separate places protect you from both hackers and accidents.3
Seed phrase vs. password
| Aspect | Seed phrase | Password |
|---|---|---|
| What it controls | All keys in the wallet | One account login |
| Can it be reset? | No | Usually yes |
| Who can recover it | Only you | Often the provider |
| If leaked | Funds can be taken | Account can be secured again |
When the seed phrase matters
New device
Restoring a wallet on a new phone or computer.
Lost hardware wallet
Recreating keys on a replacement device.
Switching apps
Importing the same wallet into another compatible app.
Estate planning
Making sure trusted people can reach funds if something happens to you.
Advantages and disadvantages
Advantages
- Restores the whole wallet from one backup.
- Works across compatible wallet apps.
- Keeps you independent of a single provider.
Disadvantages
- Anyone who sees it can take the funds.
- It cannot be reset if lost.
- Physical copies can be damaged or found.
- Scammers target it constantly.
Going deeper
Read as far as you need. Each level builds on the one before it.
One backup for everything
Beginner
The phrase recreates the wallet’s keys, so it must be stored as carefully as the funds themselves.3
Where to store it
Intermediate
Keep it offline and private.3 Digital copies — photos, notes, cloud files — can be stolen by malware or account hacks.
Phishing is the main threat
Advanced
Most seed-phrase losses come from people being tricked into revealing it through fake support, fake apps or ‘wallet verification’ sites.2
Common mistakes
Taking a screenshot
Photos sync to the cloud and can be stolen.
Typing it into a website
No legitimate site needs it.
Keeping one copy only
A single fire or flood can lock you out.
Mixing up word order
The words only work in the exact order.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A seed phrase restores all of a wallet’s keys.
- Anyone who has it can take the funds.
- Store it offline, in order, in more than one safe place.
- Never share it or type it into websites.
- Providers usually cannot recover it for you.
Frequently asked questions
Is a seed phrase the same as a private key?
Can I change my seed phrase?
Do exchange accounts have a seed phrase?
Further learning
- Counterparty Risk
Self-custody vs. trusting a platform.
- Exchange
Custodial accounts that do not need a phrase.
- Stablecoin
A common asset held in self-custody wallets.
- Spot Trading
Buying crypto before moving it to a wallet.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- ethereum.org. Ethereum wallets (opens in a new tab) Checked .
- Kraken Support. Protect yourself from crypto scams (opens in a new tab) Checked .
- Kraken Support. Create a wallet on Kraken Wallet (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.