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Seed Phrase And Private Keys | What You Need To Know
What are Seed Phrase (12 words) and Private Keys? And why they are so important?
“12-word seed phrase” – also called as recovery phrase, mnemonic seed, backup phrase, or 12-word password. It is a randomly generated unique set of twelve words, which is given to the users when they create a wallet. The recovery phrase is used to generate all the private keys that are directly encrypted on your device. Each of your assets (Bitcoin, Ethereum, Tron, etc), has a different private key but a 12-word phrase has control over all of them. This phrase allows users to access their wallets anytime and from any corner of the world.
A Recovery Phrase or Mnemonic Seed is used to enhance security and make the management of multiple wallets or assets convenient. The Recovery Phrase derives the Private Key for every coin and token that is supported by the wallet. You will get your 12-word Recovery Phrase at the time when you create the wallet. This is the only method to restore your wallet anytime you want, so make sure you back it up in a secure place.
Both Private and Public Keys are derived from the Recovery Phrase as mentioned above. It is a code paired with the public key to set off algorithms for text encryption and decryption. It provides you complete control over your public address, meaning you can send crypto or sign transactions with it. Basically, it proves the ownership of the asset.
Anyone who has access to the phrase gets permanent access to the wallet and of course the funds inside. Since the phrase can be generated only once i.e., when a user creates the wallet, it cannot be changed later on and can result in a huge loss. Therefore, it is the most important thing to take care of.
How to secure your Recovery Phrase or Private Key?
The best way to secure your Phrase or Key is to write it down on a piece of paper and attach them to the most important documents kept at your home. Electronic media are always prone to hacking and theft that's why it is not advisable to store such information in any digital format. The offline world is the most trustable option when it comes to security.
NOTE: Please make sure you note down the words or letters in the proper sequence and avoid spelling errors.
What to do if your wallet gets compromised?
If you give out your phrase or private keys to an unknown person, it means that you are giving them the ownership of your wallet. Remember, the phrases and keys once generated cannot be changed further. So think twice before giving out your phrase and key to anyone because if your wallet gets compromised there is no way to get it back.
Moreover, the phrases and keys are generated by the system and there are no backups unless you create one i.e., for your own safety. Thus they only belong to you and no one else. Meaning that if you forget your phrase and lose your wallet there is no other way to recover it.
In the end, I would like to say that store your Phrase and Private Keys in such a place where only you can get access to so that you can recover your wallet anytime on any device. Also, DO NOT share them with anyone else under any circumstances.