Seed phrase: why do you need a mnemonic phrase in cryptocurrency?

A mnemonic phrase is a set of 12-24 words and is used to restore access to a cryptocurrency wallet.

SEED phrase, SEED phrase, mnemonic code, secret phrase is a set of words that can be used to access your cryptocurrency wallet. Other names for this concept include "recovery phrase" and "backup phrase". Sometimes people use this as a synonym for "private key", although this is not entirely correct.

Seed keys, introduced in Bitcoin with BIP39, provide users with an easier way to back up their wallets. If you've used a wallet before, you've probably been asked to write down 12-24 random words, such as the following:

joke shoe boring faculty brief sick glance lazy wheel term hold faint actual matrix local phone define toast gallery town shine poet state thrive

Example 2:

figure absorb there excite turtle board item idle tilt silly unique first cover afford finger perfect resemble ranch warm honey rack across fiscal

Example 3:

divide emotion stove marine wreck notice proud suggest cannon satisfy engine symptom resource hold license term tape forward zoo appear monitor snack skirt symptom

Example 4 (for Ethereum): attitude lava welcome idea tray race trophy wife cost churn domain flush place mobile bulb chicken ugly naive rapid build answer occur flock early

How to recover Monero wallet from seed

Seed phrase wallet: introduction

So, you have decided in which wallet you will store your cryptocurrency. It doesn’t matter whether it’s a hardware wallet (for example, Trezor or Ledger) or a software one, when you launch it, it will give you a phrase of 12 or 24 words, which will be a mnemonic phrase.

It is even possible that the wallet will inform you to write down the generated seed-phrase and save the record in a safe place. In case of loss, breakage, destruction, damage, or theft of a crypto wallet, the seed phrase is practically the only thing that can restore it.

And remember that not only the words themselves are important, but also their order.

Mnemonic phrases are convenient: they are easy to remember, protect and store, and they are easy to read by human eyes.

SEED phrase and private key

Mnemonic phrases - unlike private keys - leave less room for human error when it comes to backups since they are easier to record and transmit.

Moreover, LED phrases are capable of generating not one, but a colossal number of keys from the master key. This allows users to avoid reusing addresses, since with a single SEED they can create a seemingly infinite number of receiving addresses.

Read: Review of programs for recovering lost Bitcoins

The seed phrase is not tied to a specific currency. It can be used in hundreds of cryptocurrencies, so one LED can effectively be used to recover an entire portfolio of coins and tokens.

Most leading wallets allow the user to get their funds back using the seed phrase if they have written it down correctly.

Bitcoin mnemonic phrase

The seed phrase will work in any wallet that supports the “same type” of seed phrase as the one that generated it.

This does not mean the same number of words, but the standards that the wallet used to create the seed phrase.

The standards for mnemonic phrases for wallets that support Bitcoin are described in the Bitcoin Improvement Proposal (BIP) in BIP 39. Specifically, it describes the method by which a crypto wallet creates a seed phrase - a group of easy-to-remember words that is a link to access coins.

The format includes a special list of 2048 words, known as the BIP 39 word list, from which the words for generation are taken.

Many cryptocurrency wallets use BIP 39 to generate seed phrases, and any of them can be used to regain access to lost coins.

Each wallet has its own recovery instructions, but generally you need to enter the seed phrase words in a specific order to regenerate the wallet on a new device/software.

You cannot use a random seed phrase from the words you want.

The last word of the recovery phrase is called the "checksum". The crypto wallet software uses it to check if the remaining words follow the “rules”.

An example of a Bitcoin seed phrase: “unveil hover gas credit boss salute language million prevent rare muffin method.”

Is it possible to restore if I lose access?

If you ever lose access to your wallet, it can be loaded into any wallet such as Electrum's BIP32 compliant wallet to recover your funds.

There are 2048 words in the BIP39 list, which means a 12 word string would have 128 bits of protection. This means that an attacker would need to perform 2,128 operations to guess the 12-word seed.

Read: How many total Bitcoins have been lost? Is it possible to restore them?

This may seem like a small number, but it definitely isn't. Hacking this sequence is (for now) almost impossible even for the most powerful cybercriminals. The longer the key, the more reliable it is.

The principle of generating phrases for Bitcoin wallets

The seed phrase used in hierarchically determined wallets is based on a random sequence.

The principle of creating a 12-word mnemonic phrase according to the BIP39 standard:

1. A random 128-bit sequence (entropy) is generated. A bit is a unit of information that takes only two values ​​- 1 or 0.
2. A random sequence checksum is generated. The first four bits of its SHA256 function hash are used. These four bits are added to the end of the original random sequence.
3. The resulting random sequence is divided into sections of 11 bits.
4. Each section is converted from binary to base 2048 (2048 is 211).
5. The indexing result is a mnemonic phrase of 12 words.

How NOT to store the seed phrase?

• On electronic media, even if it is offline most of the time;
• In the form of a photograph;
• By email;
• In the password manager;
• In Google documents and cloud services;
• Send via text messages;
• Print on a printer;
• Send by fax;
• Some people use USB flash drives to store phrases, but even this can be compromised in certain situations. Why take the risk?
• You should not carry a mnemonic phrase with you, as you can lose it.

Create a Bitcoin seed phrase: seed phrase generator

You can use Electrum or other hardware wallets - they almost all use the same method for generating seed phrases.

Or use a special converter/generator. One of the most popular - https://iancoleman.io/bip39

This is a completely open source phrase generation tool. You can even use this site offline: right click and save the page as BIP39 - Mnemonic Code.html. Then turn off the internet and generate the seed phrase offline.

BIP39 generation occurs randomly. Select the required number of words and click “Create”.

If you want to generate a mnemonic phrase without a computer, use hardware wallets. They generate seeds/keys completely offline on your device.

Bitcoin is the currency of the future, which requires only a brain to store

If you trust third parties to hold your funds, then you don't need Bitcoin. It’s better to trust a bank than some unknown server on which your Bitcoin wallet is stored.

The cryptography on which Bitcoin works allows you to create backup copies of wallets without any outside help. In fact, if there's one reason to get excited about Bitcoin, it's this: Anyone can have complete control over their money.

. True, it’s not you who need to worry, but the censors, totalitarian states and, first of all, huge banking corporations, all of whose activities can be replaced by a dozen smart contracts.

How to secure a mnemonic phrase for a wallet from loss

Anyone who finds your seed phrase will have access to all your funds. Therefore, keep it a secret from everyone.

Where to save the seed phrase:

• on paper - write it down on a piece of paper, hide it in a dark place with constant temperature and humidity.
• on metal - on special steel plates. Using the engraving method, the first 4 unique letters of each word are applied to them.
• in a hardware crypto wallet. But there is a risk of device failure.
• on an encrypted USB drive.

Don't store your phrase on platforms that can be easily hacked, such as Google Drive or Yandex.Disk.

Why does a cryptocurrency wallet need a mnemonic seed phrase?

What is a seed phrase

If you have made yourself a cryptocurrency wallet and decided to use it to the fullest, then you are definitely concerned about the issue of its security

. Because, like any wallet in which money is kept, a cryptocurrency wallet has a high probability of its being stolen: after all, not every person will be able to avoid falling into the network of scammers. And precisely for greater security, all wallets contain a so-called seed phrase.

What is it? This is a sequence of words from a list of 2048 terms, which is unique for each wallet and which allows you to restore the wallet if it is lost.

What is a private key

A cryptocurrency wallet has a so-called private key

, a key that only you know.
What is it? This is a pin code for accessing your cryptocurrency account, it allows you to send cryptocurrency to any other person around the world. The theft of such an account is the biggest misfortune of any owner of bitcoins or any other cryptocurrency. In addition to private keys, there are also public ones
- they are needed to receive cryptocurrency to your account.

By the way, people have been losing their private keys for years, resulting in very large losses.

. For example, a certain James Howells once lost the keys to a Bitcoin wallet containing 7,500 Bitcoins, and this is the nightmare that haunts many Bitcoin owners.

Just for protection

private key and a seed phrase is created, with which you can restore access to it.

Principle of operation

As already mentioned, a seed phrase is a sequence of terms

, there are usually 12, 18 or 24 of them, which give access to your private key and therefore to your cryptocurrency wallet.

Example seed phrase

For generation, a hierarchical deterministic key generation process is used to obtain an infinite number of them.

Generating Random Numbers

When the user creates his crypto wallet, automatically

the initial phrase is generated, this must be done if you don’t want to lose everything one day. This phrase is a long string of random numbers, and the wallet uses it to generate private keys that allow you to send or spend crypto money.

Random number generators create a unique sequence

, and pseudorandom numbers are calculated using a fixed deterministic algorithm.

In case of loss of access to the wallet, it is the seed phrase that makes it possible to completely restore it.

Seed phrase example

Translating numbers into words

Each user receives a set of 2048 words, from which sequences of 12 to 24 words are extracted (you can also set the number yourself). These words are numbered in order. The mnemonic phrase turns

into a number and on this basis all key pairs for this wallet are generated.

For example, mnemonic phrase: witch road tab

Numbers: witch = 1, road = 2, tab = 5

Sid = 1 + 2 + 5 = 8.

The phrase is generated exactly during setup

your wallet and therefore it is extremely important
not to skip
this step. Once you have access to this sequence of words, you need to write it down - on paper, since this option is one of the safest ways to store a seed phrase (other methods will be described at the end of the article). Storing it on your smartphone, in the cloud, or directly on your PC is not a secure option, since anyone with a mnemonic phrase has full access to your cryptocurrency wallet.

A mnemonic phrase is created from the code

The seed phrase is implemented using the BIP-39 standard

– he proposes a method for generating private keys using mnemonic words. The standard selects words at random and creates a long sentence from them.

The image shows how many words can be used to generate a seed phrase and how secure it will be. The more words, the higher the security

.
For example, a string of 4 words will have 128 bits of protection, and given 12 words, an attacker will need to perform 2128 operations: cracking even this sequence is still impossible
even for the most powerful systems. In general, the longer the key, the more reliable it is.

How to recover if lost

If you have a full-fledged seed phrase, you can restore

access to the wallet in case of its loss. The recovery will be shown using the Coinomi wallet as an example. This all happens quite simply.

So you're lost

private key, but you have a seed phrase saved on any medium, and you are
confident
in its
security
. You simply go to your wallet, select Restore Wallet and enter the entire phrase on the next screen. That's all: the wallet has been restored.

You can use any BIP39 compatible wallet to recover your funds.

How to secure a mnemonic phrase for a wallet from loss

As mentioned above, a reliable way to store a seed phrase is simply a sheet of paper (which can even be laminated

).
Of course, paper can fade, it can be burned or drowned, where it will fall apart - and therefore there are several other ways
, and some of them are even more reliable.

For example, a phrase can be engraved

on steel (or other metal) plates, and metals are more durable than paper wallets.

The third method is hardware

wallet, it is a regular USB flash drive (for example, Ledger or Trezor), they store the phrase safely offline. Attackers will not be able to access it without having physical contact with the device and without knowing the access PIN code for it. This method cannot be called 100% reliable, since such a wallet may be broken or lost.

Unpopular

option – storing the phrase in
divided
form. The initial phrase is generated from 100 words, and then the algorithm breaks it into 5 parts. In this case, the seed phrase can be restored using partial information - but only if at least three parts are combined.

You can also create additional copies of the phrase (in any form) and store it on an encrypted medium, which can be called a special case of a hardware wallet.

What is better not to do with the seed phrase

There are also places where it is better not to store a mnemonic phrase ever. And the first unreliable storage method is in your email or messenger

, sending the phrase there from a certain account.

The second undesirable storage method is on a “hot” wallet

, that is, on the wallet that stores the phrase on your smartphone or tablet. This is already a more secure method than the previous one, but it is still worse than even a simple hardware or paper wallet.

And finally, the most unsafe way to store the seed phrase is on an online wallet

. They store your data on servers on the Internet, and there are enough cases of hacking of such servers to recognize this storage method as the most dangerous.

FAQ

How reliable is the generation of a seed phrase by a computer or phone?

It is quite reliable, the phrase is never repeated, and you can easily generate it on both an iPhone and a PC.

Can I come up with a seed phrase myself?

Yes, but it's better not to do this - this is possible in some hardware wallets. The seed phrase is obtained using complex mathematical encryption, where the last word (for example, the 24th) depends on the previous words.

Can I record a phrase on my phone or computer?

Yes, theoretically it is possible, but this method of storing the seed phrase is considered very unreliable. If you really want to store it this way, it’s better to at least store it in the form of a picture.

Can someone guess my mnemonic phrase?

No, today this is impossible in principle.

Can I remember the seed phrase and not use any physical storage methods?

You can try, but it's better not to trust your memory. It is enough to forget just one word - and all your money in crypto wallets will be irretrievably lost.

Selecting a safe 25th word

The BIP39 standard supports an additional passphrase, which is used to encrypt the original 24-word seed phrase. This is optional, but this feature improves security and flexibility. This feature is supported by all hardware wallets such as Ledger, Trezor, Keepkey, etc.

The passphrase you set (the 25th word) can be completely random and does not have to be words from the BIP39 English word list.

But remember that each possible passphrase deterministically defines a new set of public/private key pairs. So be sure to write down the passphrase you use for the wallet that has the funds.

If you lose your passphrase but have a 24 word seed phrase, you will not be able to get your funds back. You will definitely need a 24 word seed phrase and an additional passphrase together.

Also remember that the passphrase is case sensitive and even a space is a valid character. So make a backup/write down the exact passphrase without any mistakes. Also keep a backup copy somewhere separate from the 24-word seed phrase. For example, you can store them in password managers.

Now, before you start generating your own seed phrase, here are a few things you need to know about the seed phrase and passphrase.

How to change the seed phrase?

It is not edited. But you can create as many new ones as you like and use them for different needs. To do this, in the wallet settings, find the option to log in to another account and enter the second seed. Or delete the application, install it again and create a new one. The old one will never be deleted.

It is noteworthy that the seed phrase cannot be deleted, because you did not even create it. Imagine a huge beach with an endless number of shells. And you, like a crab, climb into one of them and start using it. All these shells have always existed. Then you can stop using them, but not delete them.

Seed division

Split seed phrase is a backup method that generates a 100-word seed phrase and splits it into 5 parts, which are then distributed among a group of 5 different storage nodes.

In this case, the seed phrase can only be recovered if at least 3 parts are combined.

This method is more secure than a regular seed phrase. This is a good compromise to reduce the risk of theft and the risk of seed loss/destruction.

Be careful and take care of your cryptocurrencies properly!

Three steps to remembering your seed phrase

Step 1. Invent

Let's try to do this using the example of a phrase generated by Mnemonic Code Converter. You can go back and choose any other sequence to practice after reading this article.

So, the set of random words we received turned out like this:

• house;
• picturesque;
• pigeon;
• white;
• fashion;
• list;
• O;
• hat;
• brand;
• open;
• cake;
• reprehensible.

Your goal is to come up with a memorable story, skit, sketch, history - call it what you want. It’s not scary if the situation described is absurd, the main thing is that the word order is preserved. Visualize each of the words in your imagination or look for pictures on the Internet - perhaps this will help. Every time you repeat a phrase, visual images should appear in front of you, this will make the memorization process easier.

This is the story we learned from us: “The old house

located in
picturesque
location on the outskirts of the city.
pigeons with white
right from the window .
She is reading the Fashion
, where on the first page there is
a list
of the most stylish celebrities, on the second there is an article
on
how to choose
a hat
to match your handbag.
On my grandmother’s forehead there is a stamp
with the image of Columbus, who
discovered
America.
scones
for lunch , and the pigeons look at this and
reprehensible
thoughts arise in their heads.

Step 2: Separate

If you can't remember the whole list at once, try breaking it down into logical parts according to the content of your story. For example:

• house, picturesque, dove, white;
• fashion, list, oh, hat;
• brand, open, flatbread, reprehensible.

At the same time, you should imagine what the characters and objects in this story look like - a house, a grandmother, a dove, etc.

Vivid, emotionally charged associations help you remember the seed phrase faster

Step 3: Conquer

Devote at least three days to memorizing the mnemonic phrase.

Day one - remember the first 4 words using visual associations.

Day two - repeat the first words and remember the next 4.

Day three - repeat 8 words and remember the last 4.

Spend 10-15 minutes daily on exercise. Start each session by repeating the story, then say the chain of words out loud. From time to time throughout the day, repeat in your mind or in a whisper the part of the phrase you remember and the part that you have already memorized before.

Desktop wallets BIP39

The table below lists software wallets (desktop):

A few more tips

Perhaps the automatically generated phrase will seem complicated to you and you will want to simplify it. Should not be doing that. Experience shows that it is much easier to rely on the brain's ability to correlate individual pieces of information than to try to select random sequences of words yourself.

And most importantly: memorization should not be a replacement for a physical copy of your seed phrase from the wallet where bitcoins, ethers or monero are stored, it is just a safety net in case it is destroyed or lost access. What is more reliable: human memory or a fireproof safe? The question is complex. It's good that in this case we have the opportunity to use both of them.

BIP39 hardware wallets

Watch the video from our YouTube channel: “hardware wallets - which is better, vulnerabilities, security?”

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Mobile wallets (Android/IOS) BIP39

Mobile wallets for BIP39 for Android and IOS operating systems:

Related associations

The technique of remembering a random sequence of words is known as the method of linked associations and mnemonic linking. It was originally invented to remember shopping lists, but it’s also great for private keys.

The technique is based on the creation of a consistent logical chain of images from disparate words. The easiest way to do this is to try to visualize the words and make a story out of them.

Using the method of linked associations, Cicero could deliver brilliant speeches lasting many hours

Those who have a good memory are quite capable of remembering 12-15 words at once with the help of related associations. For others, we offer a step-by-step formula that is much more effective.