Mnemonic Phrase is another term for a Seed Phrase. It’s a secret list of words that gives you access to your cryptocurrency wallet.

You can use it to recover your wallet if you lose access to your device or app.

Surprisingly secure — if handled the right way. A piece of paper can’t be hacked, phished, or attacked online. That’s a major advantage.

⚠️ The key is how you store it.

If you keep it somewhere private and protected from fire, water, or theft — like a safe — it can be one of the most secure forms of backup. Digital backups can fail or be compromised. A physical one, done properly, puts you in full control.

If someone gets access to your printed seed phrase, they can take control of your wallet.

That’s why it’s crucial to store it somewhere only you (or trusted loved ones) can access — like a locked safe or secure location.

Digital storage (like taking a photo or saving it in the cloud) is vulnerable to hacking, malware, and data loss.

Paper, stored properly, removes those digital risks entirely.

It’s better than keeping it unprotected on your device, but it still carries risks. If the password safe gets hacked, or you lose access to it, your seed phrase could be exposed or lost.

Many experts recommend keeping your seed phrase offline — written down and stored securely — because it removes digital risks completely.

Yes — it’s a good idea if done securely.

Keeping a second copy in a separate safe location (like a locked drawer at a trusted family member’s house) protects you from fire, theft, or accidental loss.

Just be sure every copy is kept private and secure.

These tell your wallet how to generate your Bitcoin addresses from your seed phrase. They’re not part of the phrase itself, but they’re important for recovery.

⚠️ If you don’t use the same settings later, your wallet might look empty — even if your crypto is still there.

You'll usually find them in your wallet’s settings. For example:

Derivation path: m/84'/0'/0'

Address type: Native SegWit (bech32)

or m/49'/0'/0'/0 and Nested SegWit (P2SH)

or m/44'/0'/0'/0 and Legacy (P2PKH)

It's best to write these down, with your seed phrase, when setting up your wallet.

A hot wallet is connected to the internet — like a mobile or desktop app. It’s convenient, but more vulnerable to hacks and malware.

A cold wallet is stored offline — like a hardware wallet or a paper backup. It’s much more secure, because it’s not exposed to online threats.

Seed phrases are usually created by a wallet, and cold storage is where you want to store them safely.

sats (short for satoshis) are the smallest unit of Bitcoin.

1 Bitcoin (BTC) = 100,000,000 satoshis (sats)

They're named after Satoshi Nakamoto, the anonymous creator of Bitcoin.