Wallet, private key and recovery phrase
Learn how to choose a wallet and protect your recovery phrase without mistakes.
The essentials
Platform, hot wallet or hardware wallet?
| Option | Who controls the keys? | Typical use | Main risk |
|---|---|---|---|
| Account on a custodial platform | The platform | Simple buying and selling | Dependence on the provider, freezes or incidents |
| Personal hot wallet, connected to the internet | You | Small amounts, apps, transfers | Phishing, compromised device, misleading signature |
| Hardware wallet, key kept on a dedicated device | You | Storage and controlled signing | Bad backup, approving a dangerous operation |
A hardware wallet reduces the key's exposure to your computer, but it doesn't fix a wrong address or a malicious contract that you approve. "Cold" doesn't mean invulnerable. To choose, see Hot wallet vs cold wallet and our wallet comparison.
Public address, private key, seed phrase
The address is like a mailbox: people can send you assets there. The private key lets you sign. The recovery phrase is a backup provided by many wallets; it can restore access after you lose the device. Not all wallets use the same mechanism: some are smart accounts, multi-key setups or custodial accounts. Read the recovery method for your specific product.
Never type your phrase into a site to "sync", "verify" or "receive an airdrop". No legitimate support team needs to know it. Don't send it by DM; don't keep it in screenshots, cloud notes or chats. Keep an offline backup in a safe place and consider a second, independent copy if the amount justifies it. Don't photograph the phrase to copy it later.
How a seed phrase works
Most wallets follow a standard called BIP39. Your phrase has 12 or 24 words taken from an official list of 2,048 English words. The last word contains a checksum: a random sequence of words is therefore almost never valid, which helps catch a copying mistake.
From this phrase, the wallet derives all your private keys and all your addresses, across several networks if the app supports them. That's why a single phrase can restore dozens of accounts, and why revealing it gives access to all of them at once. The word order matters: the same list in a different order gives a different wallet, or an invalid phrase.
Thanks to this standard, a BIP39 phrase can usually be restored in another compatible wallet if the original app disappears. There are a few exceptions: Monero uses its own phrases, and some newer wallets replace the phrase with a passkey or several keys. To add extra protection, see BIP39 passphrase (25th word).
Where to store your recovery phrase
| Method | Advantage | Limit |
|---|---|---|
| Paper kept at home | Simple, free, offline | Vulnerable to water, fire and forgetting where it is |
| Engraved or stamped metal plate | Resists fire and water | Cost, be careful who sees you prepare it |
| Two copies in two different places | Protects against a single disaster | Two places to secure |
| Photo, cloud note, email | Convenient | Strongly discouraged: one hacked account is enough to drain the wallet |
For large amounts, there are setups where no single copy gives full access: multi-signature wallets (see Multisig and Safe) or splitting the backup into several shares. Also think about inheritance: without information, your loved ones won't be able to recover anything. See Passing on your crypto.
Setting up a wallet with a simple routine
- Go to the official site by typing its address yourself or through a reliable source; check the app's publisher.
- Install the app and create a new wallet on an up-to-date device.
- Write down the recovery phrase in the right order, offline, without sharing it. Check each word and any restore procedure before depositing a significant amount.
- Turn on the device and wallet lock. It protects local access, but doesn't replace the backup.
- Send a small test amount, then check that you know how to find the right address and the right network.
Check your backup before putting money in
A backup you've never tested is one you can't be sure of. Most hardware wallets offer a phrase check directly on the device: use it after setup. Some mobile apps ask you to re-enter a few words in the right order. Do this check while the wallet is empty or nearly empty: a copying error discovered later can cost the entire balance.
What happens if I lose my phone?
With a valid backup and a compatible procedure, you can usually restore access on a new device. Without one, recovering a personal wallet may be impossible. If someone has seen your phrase, consider it compromised: create a new wallet with a new phrase and move your funds to it as soon as possible, taking fees into account.
The most costly mistakes
- Photographing the phrase "just long enough to copy it".
- Typing it into a form presented as support, a sync or an airdrop.
- Buying a second-hand hardware wallet, or one delivered with a phrase already filled in inside the box.
- Keeping a single copy, in the same place as the device.
- Using the same wallet to hold your savings and to test unknown apps.
Frequently asked questions
What is a seed phrase?
The seed phrase, or recovery phrase, is a sequence of words (often 12 or 24) generated by your wallet. It lets you restore all the wallet's keys on another device. Anyone who knows it can drain your funds: never type it into a website and never share it with anyone.
Where should I store my recovery phrase?
Offline: on paper or a metal plate, kept in a safe place, possibly with a second copy somewhere else. Avoid photos, cloud notes, emails and messaging apps.
What's the difference between a private key and a seed phrase?
A private key authorizes spending from an address. The seed phrase is a backup from which the wallet regenerates all its private keys. Losing either one can make the funds inaccessible; revealing it hands over control of the funds.
Do I need a hardware wallet (Ledger, Trezor…)?
It isn't essential for small amounts, but it's recommended as soon as the amount matters to you: the key stays on a dedicated device, out of reach of a compromised computer. See Hot wallet vs cold wallet and our wallet comparison.