Definition
A seed phrase is a sequence of words, usually 12 to 24, that encodes the core secret used to generate a cryptocurrency wallet and its private keys. It serves as a master backup that can recreate the same wallet on compatible software or hardware. The phrase is derived from a large random number and follows standardized word lists so it is easier for humans to read and write. Anyone with the seed phrase can gain full control over the wallet and its funds.
Seed phrases are used across many types of wallets, including hot wallets, cold wallets, and general-purpose wallet applications. Instead of storing many separate private keys, the wallet can derive them deterministically from a single seed phrase. This makes backup and recovery simpler while concentrating security around one critical piece of information. Because of this, the seed phrase is treated as highly sensitive and is typically kept offline and private.
In Simple Terms
A seed phrase is like a master secret sentence that represents a crypto wallet. If the device or app is lost, the same wallet can be brought back by entering this phrase into a compatible wallet. The phrase directly links to the wallet’s private key information, so it effectively controls all assets stored in that wallet.
In practice, a wallet will show this phrase once and ask the user to store it safely. Whether the wallet is a hot wallet connected to the internet or a cold wallet kept offline, the seed phrase remains the ultimate key. Losing it usually means losing access permanently, while sharing it gives others complete control over the wallet.