What is the importance of a 12-word recovery phrase in Coinbase?

3 answers

• Nov 28, 2021 · 3 years ago
  A 12-word recovery phrase is crucial in Coinbase because it serves as a backup for your digital assets. If you ever lose access to your Coinbase account or your device gets damaged, the recovery phrase allows you to restore your funds and regain control over your account. It acts as a master key that can unlock your wallet and retrieve your private keys, ensuring that you don't lose your valuable cryptocurrencies.
  417209
• Nov 28, 2021 · 3 years ago
  The 12-word recovery phrase is like a secret code that only you should know. It's generated when you create your Coinbase account and should be kept in a secure place, preferably offline. This phrase is used to derive the private keys that control your cryptocurrencies. By having the recovery phrase, you can always recover your funds even if your device is lost, stolen, or damaged. It's a safety net that protects your digital assets from being permanently lost.
  465155
• Nov 28, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, emphasizes the importance of a 12-word recovery phrase in Coinbase. It ensures that even if you forget your account password or lose access to your device, you can still recover your funds. The recovery phrase is encrypted and can only be decrypted using your unique passphrase. It's recommended to write down the recovery phrase and store it in a safe place, away from prying eyes. Remember, keeping your recovery phrase secure is essential for the safety of your digital assets.
  524131