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What is a recovery phrase?
What is a recovery phrase?
Updated over 3 months ago

Protect Your Recovery Phrase
Your recovery phrase is the only way to access and control your crypto assets. Keep it safe, secure, and never share it with anyone!

When you register with Thane, a new account is created for you, secured by a 12- or 24-word recovery phrase. This recovery phrase acts like a master password, giving you full access to your account and any wallets within it. This approach is common in the crypto world and ensures that you have complete control over your assets without having to trust a third party.

How does a recovery phrase work?

To understand a recovery phrase, it helps to know a little about private keys and signing:

  • Private Keys: In the world of crypto, each account or wallet is protected by a private key—a secret piece of data that acts like a digital signature. Your private key is used to prove that you own the assets in your account and can authorize transactions.

  • Signing: When you want to send crypto to someone or perform any action with your account, your private key is used to sign the transaction. This signature verifies that the transaction is legitimate and that only you, the owner, have authorized it.

Your recovery phrase is essentially a way to back up and restore these private keys. If you lose access to your device or account, you can use the recovery phrase to recover everything, including all your wallets and private keys.

Why is it important?

The recovery phrase is crucial because it gives you complete control over your assets. Only you have access to it, which means no one else—not even Thane—can access your account or recover your recovery phrase if you lose it. This is a common practice in crypto, ensuring you don't have to rely on a third party to manage your assets.

Best practices for managing your recovery phrase

  1. Write it Down: Store your recovery phrase offline, and keep it in a secure location. Do not store it digitally to avoid the risk of hacking.

  2. Never Share It: Your recovery phrase is like the keys to your safe—never share it with anyone, not even with customer support.

  3. Backup Multiple Copies: Consider creating multiple backups in different secure locations to protect against loss or damage.

Make sure to check out our full guide on managing your recovery phrase.

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