Seed Phrase

Definition ∞ A seed phrase is a sequence of words that grants access to a cryptocurrency wallet and its associated digital assets. This mnemonic phrase, typically 12 or 24 words, serves as a human-readable backup for the private keys that control the funds within a wallet. It is crucial for recovering a wallet if the device is lost or damaged. Protecting one’s seed phrase is paramount, as anyone possessing it can access and spend the wallet’s contents.
Context ∞ The security of seed phrases is a constant topic in digital asset education, with warnings against storing them insecurely or sharing them. Discussions often revolve around best practices for offline storage and the risks associated with digital backups. Future developments might include alternative recovery methods or hardware-level protections. News frequently reports on asset losses due to compromised or lost seed phrases.