Mnemonic Phrase
A mnemonic phrase, also known as a “seed phrase” or “recovery phrase”, is a list of words that store all the information needed to recover a cryptocurrency wallet. The phrases are usually 12-24 words long and consist of random common English words that can be easily remembered. It is important to note that these phrases must be kept safe and secure because they provide access to funds stored in the wallet if lost or stolen.
Mnemonic phrases are used by many different types of wallets including software wallets, hardware wallets, and paper wallets. When setting up your wallet, it will prompt you for a mnemonic phrase which you should write down on paper and securely store somewhere safe such as an offline vault or safety deposit box (not online). This ensures that even if you lose your device or forget your password, you can still access your funds using the mnemonic phrase alone.
It is very important to back up your mnemonic phrase because if it is lost then so are any funds stored in the associated wallet(s). Therefore it’s advisable not to share this information with anyone and keep it secure at all times. If someone else gains access to this information they could potentially steal all of the coins associated with those addresses. Make sure not only to store them securely but also create multiple backups in case one gets damaged/lost/stolen etc; just like when backing up any other valuable data such as photos or documents from our computer hard drives!
