Wallets, Security & Custody

What is a seed phrase and why does it matter?

A seed phrase is a sequence of typically 12 or 24 words that encodes the master key to a crypto wallet and can fully restore access to its funds. It matters because anyone who holds the phrase controls the wallet, and losing it usually means losing the assets permanently with no recovery path. For example, if a hardware wallet is damaged, the seed phrase lets you regenerate the same wallet on a new device. For this reason it should be stored offline, never photographed, and never shared with anyone.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.