What is a seed phrase? The words that unlock a crypto wallet
By SendPay Business · · 2 min read
A seed phrase, also called a recovery phrase, is a list of usually 12 or 24 words created when you set up a self-custody crypto wallet. Those words can rebuild the wallet's private keys on any compatible app, so they are the master key to the funds.
What it does
The words are a human-readable backup of the wallet's keys. If a phone is lost or broken, typing the seed phrase into a new wallet app restores access to the same addresses and funds.
Why it must stay secret
Anyone who has the seed phrase can move the funds, and crypto transfers generally can't be reversed. No genuine support team will ever ask for it, so a request for it is a sign of a scam.
How people keep it safe
- Write it down on paper or metal, in order, and check each word.
- Store it somewhere private and safe from fire and water, not in photos, email or cloud notes.
- Never type it into a website or share it with anyone.
Custodial vs self-custody
With a custodial service, the provider holds the keys for you and there's usually no seed phrase to manage. SendPay crypto platforms let your customers buy, sell and hold crypto, with assets held with regulated partners.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.