A seed phrase or recovery phrase is a backup copy of a crypto wallet . In case of losing access to it, the recovery phrase will help restore access to all your crypto assets . It is generated randomly during the first setup of a web or cold crypto wallet .
Now let's analyze in more detail on the example of cold wallets .
When the cold crypto wallet is first connected , the device generates a seed phrase, which usually consists of 24 words (less often 12 or 18). 24 words for 2023 is the most common recovery phrase format, which consists of 2048 Latin words recorded in a special dictionary of the BIP39 format. All words are recorded in a certain sequence that cannot be broken.
a seed phrase yourself, because it's actually not just random words, it's a numerical code converted into words for ease of use and writing. Moreover, the 24th word is a mathematical calculation that depends on the first 23 words. Therefore, it is impossible to guess the seed phrase simply by choosing words.
Depending on the cryptowallet manufacturer , the seed phrase may be displayed only once during setup, and may be stored on the device or copied to a medium (flash drive). But if you lose your wallet, it will be impossible to recover the passphrase, even if such an opportunity existed . No technical support has access to this data.
What is important to know?
A cold wallet protects your crypto-assets at the time of use, making your transactions safe, isolated from the Internet and, accordingly, from viruses and hackers , you can break it or lose it, and the money will not go anywhere. Because the most important thing you always have is a recovery phrase. That is, it is the only key to your safe with money. But if someone knows your passphrase , they can open your balance on a separate device and withdraw money.
For advanced users.
Some cold wallets ( Ledger , Trezor ) have an additional function - 25 words.
This is a word that you make up yourself, it can be up to 100 characters long. Thanks to it, you can create a wallet within a wallet, so to speak, a hidden balance to which you can transfer most of your funds. You can open this balance using a recovery phrase of 24 words and enter the 25th word separately.
That is, if an attacker cracks your seed phrase, he will be able to see only zeros or some small amounts, but much of the rest will be protected by this 25 word.
What conclusions can be drawn from this?
First of all, you need to record the passphrase in private, and not in public places (so that there is no video surveillance).
Second, the recovery phrase must be written so that it does not get lost, and it must be stored securely in places inaccessible to others.
Frequently asked questions.
Can anyone guess my passphrase ?
- No, today it is impossible.
I lost my seed . What shall I do?
- Create a new wallet immediately and transfer all your funds there if you have access to them.
Is it possible to recover a lost seed phrase?
- No, the backup is kept only by you.
What is the best way to store a seed phrase?
- On metal. We will tell in more detail in the next article.
Can someone open my balance if it's already open on a hardware wallet?
- Yes, thanks to the seed phrase, you can open access to the crypt on many wallets at the same time.
What if someone copied my recovery phrase?
- Immediately create a new wallet and transfer all your funds there.
Can the transaction be canceled if the attacker transferred my funds earlier?
- No Unfortunately.
