Want to learn crypto fundamentals? Welcome to Block by Block. This issue answers: What is a seed phrase?
What is a seed phrase?
A seed phrase, also known as a recovery phrase or a secret private key recovery, is a sequence of 12-24 words you can use to restore a private key wallet.
Why is a seed phrase important?
Because it’s the only way to backup a crypto wallet. If you lose the phone, computer, or hardware device you use to access your crypto, you will need to enter your seed phrase elsewhere to restore your private key wallet and its contents.
What happens if I lose my seed phrase?
Initially, nothing. After all, you don’t need your seed phrase to access your funds; it’s a backup method to restore your funds. So, if you lose your physical device and your seed phrase, that’s when you can panic.
Does exchanges and wallets know my seed phrase?
No, most exchanges and wallets do not keep a record of your seed and cannot recover it for you. This is desirable because this means you and you alone have ownership over that wallet and the cryptocurrencies in it, because it’s "your keys, your crypto".
Someone asked me for my Secret Private Key Phrase. Should I give it to them?
No. Not unless you are comfortable giving them all your crypto. Scammer alert! If anyone on Twitter, Reddit, or anywhere else claims to be a support person for a crypto or an exchange like Binance or any other, or even just offers to help you, but then asks you for your seed phrase and/or private key, they are MOST LIKELY a scammer trying to steal your crypto. You should stop messaging them.
