Recovery seed, also known as mnemonic phrase, is a set of words used to access and restore funds stored on a cryptocurrency wallet. The recovery seed serves as the master key for accessing funds in case the user loses or forgets their wallet information.
A recovery seed consists of 12–24 randomly generated words from an approved list. Each word corresponds to a number (from 0-2047) which can be used to generate private keys that are linked with your cryptocurrency address and balance in the blockchain network. It is important to note that these words cannot be calculated from data available within the blockchain network, making it impossible for anyone but you to access your funds without this information.
When setting up a new cryptocurrency wallet, users should make sure they write down their recovery seed on paper or store them securely in another form such as an encrypted USB drive or hardware storage device like Trezor or Ledger devices – never store them electronically online. This ensures that nobody else will have access to it if your computer gets hacked into or compromised by malware/viruses and prevents hackers from stealing any coins associated with your account via social engineering attacks where they try obtaining sensitive information such as passwords etc through malicious means.
It is also recommended that you keep multiple copies of this backup phrase and store them separately so if one copy gets lost then there’s still another way of retrieving access back into your account without having to start over again completely from scratch!
Finally, when creating a new wallet always remember: “Not Your Keys Not Your Coins” meaning even with knowledge of the recovery seed someone could still get control over those coins unless they have physical possession of both private keys associated with each individual address connected with said accounts too; so consider security measures such extra layers authentication methods just like 2FA (Two Factor Authentication) alongside storing backups safely away offline at all times whenever possible!
