If you are new to this vast universe of cryptos or simply have an interest in learning more about how digital wallets work and how to protect your investment.
You should definitely understand what is a crypto seed phrase, how it works and why it is so important.
Read on!
What is seed phrase in crypto?
The seed phrase is a sequence of random words that serves as a cryptocurrency wallet access key, instead of relying on complex passwords or lengthy numbers.
The design of the phrase is intended to make it extremely difficult for third parties to guess.
That said, you must write it down or store it jealously without anyone knowing its location or existence.
This is the only way to recover your funds in case you lose access to your digital wallet.
Literally, it could be your life insurance if the device is damaged, lost or you forget the password.
And how is it generated? Basically, using a standard list of words that come from the BIP39 (Bitcoin Improvement Proposal 39) protocol, which defines how seed phrases are created and managed.
How does a seed phrase work?
It works as a sort of “master key”, a single phrase can generate multiple wallet addresses, this is due to a process known as determinism.
Generation of the seed phrase
When you create a wallet, it is generated randomly and becomes a sequence of words that represent a very large number (almost infinite).
To give you an idea, if you could write all possible combinations of a 12-word seed phrase, it would take more atoms than exist in the universe to do so.

The phrase is chosen from a predefined dictionary of 2048 words. The BIP39 protocol establishes these words and their sequence to ensure that the combinations are completely random and therefore secure.
Wallet recovery
When you enter the phrase into the device or wallet, the system recreates the same wallet with all its associated cryptocurrency addresses.
So, when your wallet software is lost or damaged, you only need the passphrase to restore everything without external intervention.
The importance of the seed phrase
First of all, we cannot think of it as a traditional password, which can be changed or recovered by other methods.
When it is lost, it is impossible to regain access to your wallet.
That is why we consider it to be a super-valuable asset, the one who has the phrase, has access to all the funds.
The safety of your investment depends entirely on how you handle it.
The most consistent would be to have the support of a device that does not depend on internet connection to generate or encrypt your phrase like the Cuvex device.
Consequences of a lost or exposed seed phrase
Many media have published real cases of people who, through theft or loss, have lost millions of dollars.
All because of a lack of foresight in their storage.
Now that you know what is a seed phrase crypto, we invite you to read an article in which we talk about how to store it.
This is only a small portion of all what we can tell you! So keep reading our blog 😉.
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