Recovery phrase
A recovery phrase is a series of words that lets you access your crypto wallet again. These words provide access to the crypto in that wallet.
What is a recovery phrase?
A recovery phrase usually consists of 12 to 24 randomly selected English words. The order of the words matters. A different order won't work.
You get these words when you set up a new crypto wallet. With a non-custodial wallet, where you manage access yourself, you can use the words if your device is lost or broken. You can also use them to restore a wallet on another device.
Anyone who has your recovery phrase can access your wallet and funds. So never share the words, even with someone pretending to be a support agent. Store them safely and offline, for example, on paper in a safe.
An example of a recovery phrase
Suppose your phone with a crypto wallet breaks. You install the same wallet app on a new phone and choose to restore an existing wallet.
You enter the words from your recovery phrase in the correct order. Then you can access the same wallet and the crypto associated with it again. This won't work without the correct words.
Why is a recovery phrase important in crypto?
A recovery phrase is important because it lets you regain access to your crypto yourself. If you lose the words, you may never be able to access your wallet again. If they're stolen, someone else could transfer your crypto to another wallet.
You may come across the term in information about setting up, restoring, or securing a crypto wallet. A recovery phrase isn't a regular password that you can retrieve later. That's why storing it safely is just as important as keeping the words secret.