Cryptocurrencies, unlike traditional currencies, are not backed by any central government or financial entity, but instead rely on a decentralized network of nodes that verify and validate transactions.
Therefore, since they are not backed by any entity, a lot of emphasis needs to be placed on security. Therefore, one of the key features of cryptocurrencies is security, and one way to achieve this is through the use of seed phrases.
If you want to know more about seed phrases, in this text we will delve into them and explain how they work in the context of cryptocurrencies.
What is the seed phrase
A seed phrase is a set of words that is used as a secret key to access a cryptocurrency wallet.
Cryptocurrency wallets are apps that allow users to send and receive cryptocurrencies, such as Bitcoin or Ethereum.
The seed phrase is a way to authenticate the user’s identity and protect their access to the wallet.
Seed phrases are typically a sequence of 12, 18, or 24 words that are randomly generated and presented to the user during the wallet setup process.
It is important that the user writes down the seed phrase in a safe place and does not share it with anyone, as anyone who has access to the seed phrase can access the wallet and the cryptocurrencies stored in it.
It is also important to note that seed phrases are a very secure way to protect your wallet, but they are also a weak point if not properly maintained. If the seed phrase is lost or if someone else has access to it, the user could permanently lose access to their cryptocurrencies. Therefore, it is important to take additional measures to protect the seed phrase, such as storing it in a safe place and making backup copies.
How is the seed phrase made?
The seed phrase is generated by a randomization process using a word dictionary specially designed for this purpose. Each word in the seed phrase is unique and is randomly selected from a predetermined list.
The set of words that make up that phrase is used to generate the wallet’s private key, which is a random number used to protect access to the wallet and the cryptocurrencies stored in it. The private key is a number 128 to 256 bits long that is generated from the seed phrase using a special algorithm called hash functions. Once you have the private key, you can use it to generate the public address of the wallet, which is the number used to send and receive cryptocurrency.
Can I create my own seed phrase?
While it is true that it is possible to create your own seed phrase, this is not entirely recommended, as the seed phrases are randomly generated using a word dictionary specially designed for this purpose, and each word in the seed phrase has a specific meaning within the sequence. This therefore makes the seed phrase very difficult to guess and very unlikely that two people would have the same seed phrase.
If a user decides to create their own seed phrase, it is most likely less secure than a randomly generated seed phrase. You are more likely to use common words or words that can be guessed by others, increasing the risk of someone accessing your wallet and cryptocurrencies without your authorization.
It is important, therefore, to keep in mind that the security of our wallet and its cryptocurrencies is essential, so it is better to use a randomly generated seed phrase instead of trying to create one on our own. If we use a cryptocurrency wallet supported by a trusted company, the seed phrase will be randomly and securely generated to protect your access to the wallet.
Why is it so secure?
As we have discussed before, the seed phrase is very secure because it is generated randomly using a word dictionary designed for this purpose, which makes the seed phrase extremely difficult to guess.
Private key and seed phrase is it the same?
Although both concepts are similar in certain aspects, the reality is that the private key and the seed phrase are two completely different elements. Therefore, it is important to understand the differences between the two.
On the one hand, the private key is a string of numbers and letters that is used to access a cryptocurrency account or a digital wallet. This is very important information and must be kept secret, as anyone with access to it could use it to gain access to your account and make unauthorized transactions.
What happens if I lose my seed phrase?
If we lose our seed phrase, we may not be able to access our wallet, so it is important to note that the seed phrase is the only way to access a wallet if the private key is lost or the password is forgotten. of access.
That said, losing the seed phrase would mean that we could also lose all the cryptocurrencies in our portfolio. For this reason, it is very important to keep the seed phrase in a safe place and make sure you don’t lose it.
If despite all our efforts we cannot remember our seed phrase, the next thing we should do is try to contact the customer service of the platform or digital wallet that we are using, since some platforms offer account recovery services for cases like these.
Where should I put the seed phrase?
It is important to note that even if we keep the seed phrase in a safe place, there is always a risk that someone else might have access to it. For this reason, it is important to be careful when sharing the seed phrase with others.
Bitcoin material and its wallet with seed phrase
By now, you know that at Material Bitcoin, we offer our users the safest way to store their cryptocurrencies with our physical wallet.
The best way to store our coins is to use the most secure wallet in the world: the Material Bitcoin/Ether wallet, which is designed to be resistant to fire, flood, shock or hacker attacks.
At Material Bitcoin, we now have our indestructible plate to store seed phrases.
If you already have a wallet, or a hardware wallet, you can record the backup phrase of your device or your wallet on the plate so as not to lose access to your funds even if you lose access to your wallet or your device breaks down or is lost hardware wallet.
If you still do not have any type of wallet, what you will be able to do is create a reliable wallet in which you will be able to store funds with total security and sovereignty, without depending on third parties or intermediaries. This way you can withdraw your funds from the exchange so that they are not at risk.
In conclusion, seed phrases are an essential tool to protect the security of our wallets, but we must remember that all the responsibility falls on us, so it is important to keep the seed phrase in a safe place and make sure not to lose it, since that, otherwise, it is likely that it will not be possible to recover the wallet in which we store our coins.