Seed Phrase vs Private Key: What Is the Difference?

Every non-custodial wallet relies on secret data that only you should know. Wallet apps call it a seed phrase, a recovery phrase or a private key, and these terms are often mixed up. They are closely related, but they are not the same thing.

What a private key is

A private key is a very large random number. A public key is mathematically derived from it, and the address you share with other people is derived from the public key. Whoever has the private key can sign transactions and move funds from that address. The key cannot be calculated from the address, so the whole scheme is secure as long as the private key stays secret.

What a seed phrase is

A seed phrase, also called a recovery phrase, is usually a list of 12 or 24 English words. Most modern wallets follow the BIP-39 standard: the words encode a random number from which the wallet derives a master key and, from it, practically any number of private keys and addresses for different coins and networks.

That is why one seed phrase can restore your entire wallet in another compatible app: all your addresses and balances reappear, because they are derived from the same phrase.

Key differences

• Scope. A private key controls one address. A seed phrase controls every address the wallet has created or will create.
• Format. A private key is a long string of letters and digits, for example 64 hexadecimal characters for Ethereum. A seed phrase is a set of ordinary words that is easier to write down without mistakes.
• Purpose. A seed phrase is used to back up and restore the whole wallet. A private key is usually exported to import one specific address into another wallet.

How to store them safely

• Write the seed phrase down on paper or a metal backup plate and keep it offline, away from your phone and cloud storage.
• Do not take screenshots and do not keep the phrase in notes, email or messaging apps.
• Keep at least two copies in different secure places.
• Never enter the phrase on websites and never send it to anyone. No legitimate support team will ever ask for your seed phrase or private key.

What to do if your phrase is exposed

If someone may have seen your seed phrase, treat the wallet as compromised. Create a new wallet with a new phrase and move all your funds to it as soon as possible. Changing the app password will not help: whoever knows the phrase can restore the wallet on their own device.

Xgram and your keys

Xgram never asks for your seed phrase or private keys. To make an exchange, you only enter the address where you want to receive the coins, so your keys and control over your wallet stay with you.