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General TradingR
Recovery Phrase
A sequence of 12 or 24 randomly generated words that serves as a master backup for a cryptocurrency wallet. Also known as a seed phrase or mnemonic phrase, it allows users to restore access to their funds if their wallet device is lost, stolen, or damaged.
Example
“When setting up a Ledger hardware wallet, the device generates a 24-word recovery phrase that the user must write down and store securely offline — losing it means losing access to all stored crypto.”