Wallets vary in the exact steps needed to generate a seed phrase for you, but this article lets you know what to expect by offering a high-level overview of the wallet seed phrase setup process.
You can choose to generate a seed phrase from a cold-storage or "hot" wallet. (Be careful where you get your wallet from! )
See the Vault12 Wallet Guides for more guidance on how to fully configure your wallet. Generating a seed phrase is usually a subset of that process, and this article just gives you the high-level view.
Most wallets are careful to force you to repeat the seed phrase that it generates for you back to it so that it "tests" that you captured it in some form. (But it will not know how sensible your backup form is!)
Once you have generated your seed phrase with a wallet, you must back it up securely for long-term storage. Vault12 is a great way to accomplish that.
Select and acquire a wallet.
If you plan to retain custody of your cryptocurrency keys, you will need a wallet to interact with the cryptocurrency ecosystem. Selecting an appropriate wallet depends on your specific needs. Different wallets store different cryptocurrencies, so it's important to make sure the wallet you purchase can accept the cryptos you want to store.
If you plan to buy and hold cryptocurrencies for a long period of time, a hardware wallet is probably your best choice. They keep your crypto safe by never directly connecting to the internet. Despite being more cumbersome to use, they are your safest choice for crypto cold storage.
If you are trading or holding smaller amounts of crypto for shorter periods of time, desktop wallets or mobile wallets may be an option.
Web wallets, including wallets on exchanges, offer limited security. Experts recommend not keeping significant amounts of cryptocurrency in exchanges, but rather, putting them safely into cold storage on a hardware wallet.
With wallets, as with everything related to cryptocurrency, be careful of scam websites created to fool you. Be sure of where you are getting your wallet from, to ensure that it is a trusted source. Some hardware wallets are shipped in tamper-evident packaging, and some others are designed to indicate on initial startup if they have been tampered with.
You can check out our wallet guide for setup details for different wallet types.
Wallet setup - high-level view.
To set up your wallet, follow your wallet documentation, and also refer to the Vault12 Wallet Guide specific to the wallet type. Setup usually takes less than 15 minutes. For a hardware wallet, you will need to download software to your computer. The setup steps will walk you through connecting the hardware wallet to your computer, and possibly installing or updating firmware. You will likely be prompted to set a wallet PIN and/or password for access to its interface. Software wallets will have a similar setup, but will not include a step to install firmware.
How to create your seed phrase in a wallet.
Wallets will walk you through the steps to set up a seed phrase the first time that it is used. When you arrive at the seed phrase creation step, the wallet will display each of the words, one at a time. Write down each word in the order it was received. For example, 1=race, 2=affair, 3=onion, 4=dinosaur, etc.
Because it is so important to permanently and correctly capture the seed phrase, wallets will make you carefully verify that you have correctly recorded each word. After displaying all of the words, the wallet will ask you to confirm again, for example: "What is number 9? Number 3? Number 7?" Confirm all words to the wallet as it prompts you. Once you verify all of the words, you have successfully generated your seed phrase.
Back up the Seed Phrase!
Now, it is time to back up your precious seed phrase. Read our article on how to back up your seed phrase.
Next Up From Vault 12
Inheritance and long term storage for CryptocurrencyVault12 Explainer
Vault12 Product Demo
Vault12 Digital Inheritance is the first solution to offer a simple, direct, and secure way to ensure cryptocurrency, NFTs and other digital assets can be accessed by future generations.
Digital Inheritance enables investors to designate an individual who will inherit their entire portfolio of digital assets stored in a secure Vault once the time comes, eliminating undue risk and the need to continually update an inventory or continually issue updated instructions which can result in privacy leakage.
Designed to be used alongside traditional hardware, software and online wallets, Vault12 helps cryptocurrency owners, professional cryptocurrency traders, and high net worth investors safeguard their digital assets without storing anything in the cloud or in fact any one single location. This increases the protection and decreases the risks of loss.
The Vault12 app helps you recover, back up, and provide legacy inheritance for all your digital assets, including Bitcoin, Ethereum, NFTs, other cryptocurrencies, secrets like keys, seed phrases, PIN codes, digital art, and of course, your crypto wallets.
As a creator you can use Vault12 to safeguard not just your NFT and crypto wallets, but also original digital artwork. Project creators will always have to deal with multiple wallets - inventory, treasury as well as future royalty wallets.
Vault12 safeguards your project assets, increasing protection and decreasing the risks of loss, whilst ensuring that everything is ready to go to be passed onto future generations, when the need arises.
Whether your digital art is suitable for a phone, or represents much higher resolution multimedia, make sure that you have backed up a copy in case the resource link is disrupted in the future. Digital art can easily be added to the Vault either via the mobile app or via the desktop utility. Once you have stored your artwork in your Vault, it will also benefit from inheritance once you set that up in your app.