To store a recovery phrase securely, write the 12 or 24 words by hand, keep them offline on paper or a fire-resistant metal plate, store the backup somewhere private and protected from fire and flood, and never photograph, type or upload them. Anyone who reads your recovery phrase can take every coin in that wallet.
What is a recovery phrase and why does it need protecting?
A recovery phrase (also called a seed phrase or mnemonic) is a list of 12, 15, 18, 21 or 24 words defined by the BIP-39 standard. The words encode the master secret from which a wallet derives every private key, on every blockchain it supports. Whoever holds the words can rebuild the wallet on any compatible device, and no company can freeze or reverse what they do. Our explainer on private keys and seed phrases covers how the keys are derived.
That makes the phrase both your backup and your biggest exposure. A good storage plan has to defend against two opposite failures: someone else finding it (theft) and you being unable to find or read it (loss).
Where should you never store a recovery phrase?
- Photos and screenshots: they sync to cloud photo libraries and can be read by malicious apps.
- Notes apps, email drafts and cloud documents: any account breach exposes them, and malware searches files for word lists.
- Messaging apps, including messages to yourself.
- Websites and forms that ask you to "validate" or "sync" a wallet. These are always phishing.
- Shared or networked printers, which can keep copies of printed jobs.
Paper or metal: which backup should you use?
| Backup method | Fire and water | Cost and effort | Notes |
|---|---|---|---|
| Paper recovery card | Poor | Free, quick | Use permanent ink; fine as a first copy |
| Stamped or engraved steel plate | Good | One-off purchase, slower to make | Strongest common option for long-term storage |
| Metal letter-tile capsule | Good | One-off purchase | Check tiles are held firmly so letters cannot shift |
A useful detail for metal backups: the BIP-39 English word list is designed so that the first four letters identify each word, so you can stamp four letters per word instead of the whole word. Number every word, and double-check spelling against your wallet's word list.
Where should you keep the backup?
- Somewhere private: not in a desk drawer or anywhere guests, cleaners or contractors could see it.
- Protected from disasters: a fire-resistant home safe, or a second location away from home.
- Two copies, two places: one copy can be destroyed; two in separate locations survive a single fire or flood, but each copy is another place a thief could look.
- Away from the device: do not keep the hardware wallet and its backup in the same box.
For more on choosing devices and where funds should sit, see our beginner's guide to storing crypto.
Should you add a passphrase or use Shamir backups?
A passphrase is an optional extra word or sentence added to the recovery phrase. BIP-39 notes that every passphrase produces a different valid wallet, which gives plausible deniability: someone who finds your 24 words sees only the wallet without the passphrase. Store the passphrase separately, because forgetting it means losing those funds.
Shamir backups (SLIP-39) split the wallet secret into shares, for example any 2 of 3. The SLIP-39 specification states that fewer shares than the threshold reveal nothing about the secret, so you can store shares in different places without creating a weak point. A multi-signature wallet achieves a similar goal with separate keys instead of shares. Both are covered in the advanced section of our wallet security best practices.
How do you test your backup and plan for inheritance?
- Use your hardware wallet's built-in backup check, or restore the phrase on a spare device with a small amount before relying on it.
- Re-check the backup every year for damage or fading.
- Write instructions for your heirs that explain what the backup is, where it is and how to use it, without writing the phrase itself into a will, which may become a public document after death in some countries.
- If someone asks for your phrase to "help", refuse: legitimate support never needs it.
Recovery phrases and Wealtii
Wealtii is custodial, so you do not hold a recovery phrase for your Wealtii fund investments; fund assets are held by Wealtii, 1:1, in a public Gnosis Safe 3-of-3 multi-signature vault on BNB Smart Chain. That shifts the risk to Wealtii as custodian, and Wealtii is not regulated and has no insurance. Any external wallet you withdraw USDT to still needs its own carefully stored recovery phrase. See how Wealtii holds fund assets.
Frequently Asked Questions
Can I store my seed phrase in a password manager?
It is not recommended for meaningful amounts. A password manager is excellent for passwords, but it puts the one secret that controls your funds on internet-connected devices and behind a single master password. An offline paper or metal backup removes remote theft entirely; if you do use a manager, add a wallet passphrase that is stored elsewhere.
What happens if I lose my recovery phrase?
If your wallet device still works, move the funds to a new wallet with a new recovery phrase straight away and back that one up properly. If you lose both the device and the phrase, the funds cannot be recovered by anyone, because no company holds a copy of a self-custody key.
Should I split my seed phrase into two halves?
No. Splitting the words in half means each half reveals part of the key, and losing either half can lock you out. If you want to spread a backup across locations, use a scheme designed for it, such as SLIP-39 Shamir shares or a 2-of-3 multi-signature wallet, where one lost or stolen piece is harmless.
Is a bank safe-deposit box a good place for a seed phrase?
It protects against home burglary and fire, but access is limited to opening hours, bank staff may be present, and rules differ by country. Many people keep one copy at home in a fire-resistant safe and a second in a separate trusted location, ideally protected with a passphrase stored apart from both.
Sources & References
- BIP-39 — Mnemonic code for generating deterministic keys (accessed 21 Oct 2026)
- SLIP-0039 — Shamir's Secret-Sharing for Mnemonic Codes (accessed 21 Oct 2026)
- SEC Office of Investor Education — Crypto Asset Custody Basics for Retail Investors (accessed 21 Oct 2026)
- FTC — What To Know About Cryptocurrency and Scams (accessed 21 Oct 2026)
Disclaimer: This content is for educational purposes only and does not constitute financial, tax, or legal advice. Digital assets are volatile and carry risk of loss. Wealtii is early-stage and not regulated.
