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Term 849 of 1030
1 min readTwo voicesInvesting

Seed phrase.

A seed phrase is a list of simple words that backs up a crypto wallet; anyone who has it can restore the wallet and take the funds.
Verified July 2026 · Source: SEC (Investor.gov)
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Seed phrase
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In plain English

A seed phrase, also called a recovery phrase, is usually 12 or 24 ordinary words that a wallet gives you when you set it up. Those words encode every private key in the wallet, so they can rebuild the whole wallet on a new device if your phone breaks or is lost. That power cuts both ways: anyone who sees the phrase can recreate your wallet and drain it. Legitimate apps and support staff never ask for it. Writing it on paper and storing it offline, away from cameras and the internet, is the standard way to keep it safe.

Most useful ages
18 to 70

01Why it matters

The seed phrase is the ultimate backup and the ultimate vulnerability, so how you store it often decides whether your crypto survives a lost phone or a scam.

02The math, step by step

A fake support agent asks for your 12-word phrase to fix an issue. If you type it in, they restore your wallet on their own device and take everything. A real wallet provider would never need those words.

03What this is NOT

Do not confuse with A password you can reset

A seed phrase is NOT a resettable password. It cannot be changed if exposed, and no company can recover your funds if you lose it, so it must be backed up and kept secret.

04Receipts

Every figure on this page is sourced to a primary document. Tap to open the original.

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Last reviewed July 13, 2026 · Reviewer Joseph Citizen, Founder