Home Crypto What is a Crypto Seed Phrase? (Are They Necessary?)

What is a Crypto Seed Phrase? (Are They Necessary?)

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Seed Phrases recover lost or broken wallets in the crypto industry. However, a lot of crypto users are unaware of them. In the world of increasing crypto scams, we should know about all the potential security solutions. Safeguarding your digital assets should be your priority regarding your crypto portfolio.

After the FTX scam and many Bitcoins going dormant, you need to learn what crypto Seed Phrase is and why it is important. So, in this blog, we will cover everything you need to know about Seedh Phrases and whether or not they’re important.

What is a Crypto Seed Phrase? Explained

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A crypto Seed Phrase contains random words sequence that stores all the important data about your crypto on Blockchain or Crypto Wallet. Whenever you want to access your cryptocurrency, you need some data that gives you access to your digital assets. Well, that exact data is stored in a sequence of random numbers to protect them from theft.

Most crypto wallet platforms provide the Seed Phrase technology and encourage the users to note the sequence down on paper if their account encounters a threat. Crypto Seed Phrase is important when a hacking attempt occurs and comes in handy when there’s a hardware breakdown or a file corruption issue.

Whenever there’s some technical error, users can simply reinstall the wallet software and regain access to their cryptocurrencies using the data in the same sequence they have noted earlier. Seed Phrases come with multiple names, like Backup Seed Phrases, Mnemonic Phrases, and Seed Recovery Phrases.

Regarding technicalities, the crypto Seed Phrases work with the BIP39 standard. So what is BIP39, and how does this protocol help generate a Seed Phrase?

What is the BIP39 Protocol?

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The BIP39 protocol lets the crypto wallet generate a random string of words to create an encrypted sentence for you. Moreover, the wallet converts the words into binary seeds, making a set of encrypted and decrypted keys for the users.

The decryption key unlocks the encryption, giving users complete access to their assets without anyone interfering. The BIP39 protocol contains a mnemonic sentence and binary seed as the main components.

The simple job of the BIP39 protocol is to convert the mnemonic sentence into a binary seed. Now, let’s talk about how you can, as a crypt investor, generate a seed phrase for your crypto assets.

Generating Your Own Seed Phrase

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Generating seed phrases depend on the type of service you’re using. So here are some of the methods that are used to generate a seed phrase.

For Crypto Wallets

Crypto wallets automatically generate a Seed Phrase when setting your wallet up. It’s usually an automated feature that a wallet provider will do itself, so you won’t have to go through the extensive process of generating one.

Once a Seed Phrase is created, you can’t change it, and it remains with you all the time you’re using that crypto wallet. So, all in all, crypto wallets automatically generate the Seed Phrase for you.


Many encrypted vaults help you create a seed phrase that generates it and lets you keep the sequence in a secured vault. All your data will be safe in a third-party vault. However, it is less safe than keeping it offline as a hardware key.

One of the most popular vault apps is Vault12 which performs regular audits and takes backups.


Dice is an offline method of storing the Seed Phrase. It incorporates papers, pens, dice, and a BIP39 word list. You can use multiple dice, and by rolling the dice, you can write down random results on a piece of paper, which ultimately become your seed phrase. It’s a pretty secure method of generating a Seed Phrase.

Do We Need Crypto Seed Phrase?

The crypto world is complex, and security still needs to improve. While new technology is being developed to replace Seed Phrases, we still need Seed Phrases more than ever. In 2022, many big crypto exchanges closed down due to security issues.

Moreover, many big companies like FTX alerted investors that no matter how big an exchange is, it can still be corrupted by money. So at the end of the day, Seed Phrase has its benefit and con, and if you want your digital assets to be unbreakable, you should use this technology.

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