What is Mnemonic Phrase?
Let's find out Mnemonic Phrase meaning, definition in crypto, what is Mnemonic Phrase, and all other detailed facts.
A Mnemonic Phrase is a set of completely random 12 or 24 words presented in a specific order. It is a sort of memory aid that helps people recover vital information.
For example, primary schools use mnemonic practices to teach the order of the planets closest to the sun - MVEMJSUN. In this case, each letter represents a planet starting with Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus, and Neptune. This set of letters can be used to create a phrase that’s easy to remember. A common example of this phrase is “My Very Excellent Mother Just Served Us Noodles”.
In the world of cryptocurrencies, a mnemonic phrase is defined as a set of random words used in a specific sequence that grants access to the holder's owned cryptocurrency assets.
Let’s have a look at how a mnemonic phrase could look like: car school horse potato notebook bottle stairs pink litter building loser tank.
It’s a set of 12 completely random words that have no correlation. In order to gain access to a system, the user will have to say or type these words in the exact same sequence that they’re presented here.
When you open an account with a crypto wallet provider, you’re usually provided with a mnemonic phrase. Companies highly encourage their users to write down this phrase anywhere else that’s not in the virtual space such as on a piece of paper.
It’s vital to keep the mnemonic phrase safe in case of loss, theft, or damage. Their purpose is to give you another chance to retrieve your digital assets before they’re lost forever.