What is a Secret Phrase?
Private Keys vs Recovery Phrase
When you create a wallet with Gem Wallet, a Secret Phrase (also known as the Recovery Phrase or Mnemonic Phrase) is automatically generated to secure and recover your wallet. If you're curious about what a Private Key is and how it differs, this document offers a clear and concise explanation of their roles, differences, and importance.
What is a Private Key?
A Private Key is a cryptographic string of characters that serves as the secret code granting access to and control over a specific blockchain wallet address. It is used to:
- Sign transactions to send cryptocurrency or interact with blockchain networks.
- Prove ownership of the funds or assets tied to a specific wallet address.
- Each address in a wallet has its own unique private key.
Here are some examples of Private Keys from a Solana and an Ethereum Wallet.
What is a Recovery Phrase?
A Recovery Phrase is a set of words (typically 12 or 24, e.g., cat dog tree apple...) that acts as a backup to regenerate all private keys associated with a wallet. It is used to:
- Restore access to a wallet if the device is lost, damaged, or the wallet app is deleted.
- Recover all addresses and their corresponding private keys within the wallet.
- Support multiple blockchain networks (if the wallet is multi-chain).
The recovery phrase must be stored securely, as it provides full access to the entire wallet if compromised. Protect your wallet at all times. Check out our How to Secure my Gem Wallet guide for step-by-step tips to protect your crypto.
Key Differences Between Private Key and Recovery Phrase
| Aspect | Private Key | Recovery Phrase |
|---|---|---|
| Format | A complex string of letters and numbers. | A list of 12 or 24 human-readable words. |
| Purpose | Signs transactions for a specific address. | Restores an entire wallet and its keys. |
| Scope | Tied to a single blockchain address. | Covers all addresses/keys in the wallet. |
| Ease of Use | Hard to memorize or back up manually. | Easier to write down and store securely. |
| Security | Critical to keep secret; controls one address. | Critical to keep secret; controls entire wallet. |
Why It Matters
- Private Keys are the technical foundation for interacting with blockchain networks, but they are cumbersome to manage directly.
- Recovery Phrases simplify wallet recovery by encoding all private keys into an easy-to-backup format, making them essential for restoring access to your funds.
- Both are sensitive and must be stored securely (e.g., offline, in a safe place) to prevent unauthorized access.
Secret Phrase and Private Keys in Gem Wallet
When you create a new wallet with Gem Wallet, a unique Secret Phrase—a randomly generated set of 12 words—is automatically created. This phrase serves as a secure backup to restore your cryptocurrency wallet and access all associated private keys. Gem Wallet also supports importing Private Keys for users who wish to manage specific blockchain addresses directly.
A Secret Phrase serves as a backup or a key to unlock or restore your own personal wallet. After creating a wallet, always secure the Secret Phrase. No one else has access to this besides the one who created the wallet. You can only do transactions with your wallet if you have the Secret Phrase. Without it, the funds on the wallet cannot be accessed, not even the Gem Wallet team can help you recover them.
Best Practices to Keep the Secret Phrase Secure
- Never share your private keys or recovery phrase with anyone.
- Store securely: Write down your recovery phrase on paper or a secure medium and keep it in a safe location.
- Avoid digital storage: Do not store private keys or recovery phrases in unencrypted digital formats (e.g., screenshots, cloud storage).
- Double-check: When backing up your recovery phrase, verify that all words are correct and in the right order.