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Seed Phrase
A seed phrase, also known as a recovery phrase or mnemonic phrase, is a sequence of 12, 18, or 24 random words generated by a cryptocurrency wallet. The seed phrase is used to back up and recover the wallet if the user loses access to their device or private keys. It is the most important piece of information for securing a wallet since anyone with access to the seed phrase can control the associated funds. It is essential to store the seed phrase securely, preferably offline, to avoid theft or accidental loss. Example: A user who loses their hardware wallet can recover their funds on a new wallet by entering the 24-word seed phrase.
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