Multi-level protection of a crypto wallet: seed phrase

Securing a crypto wallet consists of using a seed phrase. It is randomly selected, and hacking is impossible. It is worth paying attention to the recommendation to write the code expression on a piece of paper. Sometimes this can save not only the account funds but also your time.

Understanding seed phrases

The seed phrase is known under different names. The following options are often encountered:

• seed phrase;
• seed recovery phrase;
• original phrase;
• backup seed phrase;
• mnemonic phrase.

The essence of the seed phrase is to protect the crypto wallet. The words are randomly selected, which guarantees security. Use a seed phrase to restore access to your wallet after reinstalling the system and restarting.

BIP39 Standard

The BIP39 protocol is used to generate random seed phrases. Thanks to the use of technology, the expression is converted into a binary code. This is a selection of keys for secure access and use of the account. In other words, the protocol guarantees the uniqueness of the user who owns the code phrase.

Creating an initial phrase

When setting up a crypto wallet, you can choose the option of creating a code expression. In the first case, the phrase is generated randomly. The procedure is purely mechanical but provides the required protection.

Sometimes special calculators are used to generate a phrase. Programs use their protocol to select a unique access code. The conversion of words into a binary system occurs automatically.

The importance of initial phrases

The role of initial phrases is difficult to overestimate. Thanks to their generation, you can restore access to a lost crypto wallet. In addition, the code allows you to re-enter the lost wallet. Initial phrases are used as a way to ensure protection for assets that the holder stores independently.

Code expressions are created to access the wallet, and closed codes are intended for transactions. Despite the similar origin, the purposes of use are different.

Keeping the seed phrase safe

Storing seed phrases will affect the safety of your funds. Knowing the phrase for restoring access, you can log in from any device, and then withdraw cryptocurrency to a third-party account. Considering that your financial status depends on the safety of the seed phrase, the information should be inaccessible to outsiders.

What is a private key?

A private key is a code expression that allows you to approve transactions. The combination consists of letters and numbers and is used only by the owner. The public key is an email address that can be shared with outsiders to make payments.

What is a hardware wallet?

Using a hardware wallet is attractive due to its autonomy. A physical data carrier is not so easy to hack or lose. At the same time, access to the data will not bring results: the cryptocurrency is stored in the form of access codes, and without a wallet - just a set of keys.

What is a wallet address?

Interaction with blockchain networks is possible thanks to the presence of a wallet address. Sometimes it is called a public key. This is because your wallet address is generated from unique and non-repeating data.

Conclusion

Multi-layered protection of cryptocurrencies ensures that only the owner gets access. Private keys are used to verify transactions, and public keys are needed to send or receive funds.