Hello, dear listeners of our podcast. In this episode we want to discuss the topic of security of cryptocurrency assets, and for this purpose we need to tell you what Seed phrase is and why it is needed. Imagine: you lost your phone where your cryptocurrency wallet is installed, or your computer crashed. What to do? How do you regain access to your digital assets? The answer is Seed phrase.
A Seed phrase (also known as a mnemonic phrase or recovery phrase) is a set of 12, sometimes 18 and 24 words generated by your cryptocurrency wallet when you create it. This phrase is your personal key to regaining access to all of your cryptocurrencies in that wallet. It is essentially a backup of your private keys in a human-friendly format. You can write the Seed key on a piece of paper, copy the contents of the piece of paper, put it in a vault, engrave the words in stone, or use memorization techniques and store the words in your head. It doesn't matter exactly how you do it. If you were able to keep the key so that no one but you can read it, you will have the ability to recover the lost coins. The sequence of words is all you need to know.
How does it work? Seed phrase is created based on the BIP39 (Bitcoin Improvement Proposal 39) standard. This standard defines a list of 2048 words (the full list can be found here: https://bip39-phrase.com/ ). Your wallet uses cryptographic algorithms to generate a unique combination of words from this list. It is this combination that is your Seed phrase.
Why is the Seed phrase so important? Because it is the only way to regain access to your funds if you lose your device or access to your wallet. Without a Seed phrase, your assets will be lost forever.
When your hard drive crashes or your smartphone gets hit by a skating rink, how do you regain access to your coins with a Seed key? If you need to regain access to your wallet, you simply enter your Seed phrase into a new or reinstalled wallet that supports the BIP39 standard. The wallet uses this passphrase to recover your private keys and therefore access to your cryptocurrencies.
Remember: Seed phrase is the access to your cryptocurrency wallet. Keep it secret and guard it like the apple of your eye. Never share it with anyone, not even your wallet's support representatives. Anyone who knows your Seed phrase has complete control over your assets. In future episodes, we'll go into more detail about the most secure methods of storing your Seed phrase. Thanks for being with us, and see you in the next episode!
