How Wallets Work
Key generation, balance tracking, and what happens when you click send.
How to Store Bitcoin
Recovery Phrases Explained
What a seed phrase is, how to back it up, and why it must stay private.
Overview
A seed phrase is a ordered list of words that generates all your wallet's private keys. Anyone with the phrase can spend your Bitcoin. Write it on paper or metal, store copies in separate secure locations, and never photograph or email it.
Test recovery on a spare device before you depend on a wallet for large balances. Losing the phrase without a backup means permanent loss of access—no institution can restore it.
Structure and purpose
A typical seed phrase is 12 or 24 words from a standardized list. Ordering matters—two swapped words produce a different wallet.
From the phrase, wallets derive all future private keys deterministically, enabling restoration years later.
Backup best practices
Write seeds on paper or metal for fire and water resistance. Store copies in separate physical locations.
Never store phrases in cloud notes or email drafts unless you fully understand the threat model—and most users should avoid it.
Optional passphrase layer
Many wallets support an additional passphrase that modifies derived keys, acting like an extra word.
Losing the passphrase loses that wallet even if the seed is intact. Document whether you use one for heirs.
