Part 3/8:
The seed phrase—typically composed of 12 to 24 words—is the master key to your crypto holdings. Its importance cannot be overstated. If your device is lost, stolen, or damaged, this phrase allows you to restore access to your funds on a different device. Therefore, creating a proper and tested backup of your seed phrase is paramount.
Best practices include:
Multiple back-up locations: Store copies in different safe places.
Protection from elements: Ensure at least one backup is fireproof and waterproof.
Offline storage only: Never keep digital copies, photographs, or store seed phrases in digital environments like password managers or cloud storage.
Never reveal your seed phrase to anyone, and refrain from storing it digitally to prevent hacking or theft.