store entropy. The password can be used to create a two-factor seed phrase where both "something you have" plus "something you know" is required to unlock the bitcoins. Paper should be acid-free or archival paper, and stored in the dark avoiding extremes of heat and moisture 5. For example, it must not be typed into any website. NOT use phrases from books, lyrics from songs, your birthday or street address, keyboard mashing, or anything you think is random, because chances are overwhelming it isn't random enough for the needs of this tool. Storing entropy (such as keeping a deck of cards in a specific shuffled order) is unreliable compared to storing a mnemonic. Warning : Forgetting this password will result in the bitcoin wallet and any contained money being lost. Seed phrases are an excellent way of backing up and storing bitcoins and so they are used by almost all well-regarded wallets.
With that one can carry 100,000 which can instantly be moved to a phone or transferred yet with total security. More info, bIP39 Mnemonic code for generating deterministic keys. This is probably why many wallets call it an extension word instead of a password. 8 See Also References). The BIP39 standard defines a way of passphrase-protecting a seed phrase. Var Mnemonic require bitcore-mnemonic var code new Mnemonic String / 'select scout crash enforce riot rival spring whale hollow radar rule sentence'. The code for doing so looks like this: var Mnemonic require bitcore-mnemonic var code new Mnemonic select scout crash enforce riot rival spring whale hollow radar rule sentence var xpriv1 HDPrivateKey / no passphrase var xpriv2 HDPrivateKey my passphrase / using a passphrase). Some people get the idea to split up their phrases. A similar scheme is also used in the Electrum standard. The software is provided "as is without warranty of any kind, express or implied, including but not limited to the warranties of merchantability, fitness for a particular purpose and noninfringement. Storing Seed Phrases for the Long Term.
Var myWordList 'abandon 'ability 'able 'about 'above. Explanation, a simplified explanation of how seed phrases work is that the wallet software has a list of words taken from a dictionary, with each word assigned to a number. During the seed generation process a passphrase can be used. The built in random generator can generally be trusted more than your own intuition concerning randomness.