This article explains what recovery words are and why they are the single most important backup for your cryptocurrency. Understanding how they work is the first step to securing your funds.
What are recovery words?
When you first set up your BitBox02, it generates a "master key," which is a single secret that creates all of your individual private keys. Your 24 recovery words are the human-readable backup of this master key. This list of words is often called a "seed phrase" or "mnemonic phrase."
If your BitBox02 is ever lost, stolen, or damaged, you can use these 24 words to restore full access to your funds on a new device.
How recovery words work (BIP39 standard)
Your wallet's master key is a very long, secret random number. Because writing down a long string of numbers is difficult and easy to get wrong, an industry standard called BIP39 was created.
From a secret number to words
The BIP39 standard converts the secret number into a unique, ordered list of 24 English words. This makes it much simpler to write down the backup correctly. The system also includes an integrated check that helps detect mistakes during setup or restoration.
The BIP39 word list
The BitBox02 uses the official BIP39 word list, which contains 2048 carefully chosen English words. For extra reliability, the first four letters of each word in the list are unique, which helps identify a word even if your handwriting is messy.
From seed to addresses
Your master key
Think of your 24 recovery words as the master blueprint for your entire crypto wallet. They don't just back up one account; they back up everything.
A tree of keys and addresses
From this single master key, the BitBoxApp can generate a nearly infinite "tree" of accounts, keys, and addresses in a predictable way.
- The Trunk: Your 24-word seed phrase is the trunk of the tree.
- Main Branches: The trunk grows into main branches, representing different cryptocurrencies (like Bitcoin or Ethereum).
- Smaller Branches: These main branches split into smaller ones, representing different accounts.
- Leaves: Each small branch sprouts leaves, which are your individual receiving addresses (like a Bitcoin bc1q... address).
Because this process is predictable (deterministic), whenever you restore your 24 words, the BitBoxApp will always rebuild the exact same tree, giving you access to all your accounts and funds.
Frequently Asked Questions (FAQ)
Why are there 24 words? Can I use fewer?
The BitBox02 uses 24 words because it provides the highest level of security for your master key. While some wallets use 12 words, a 24-word phrase is exponentially more secure and harder to guess.
How does the number of recovery words relate to security?
The number of words in your phrase relates directly to its security level, also known as entropy. More words create a combination that is exponentially harder to guess. The BitBox02 uses the 24-word standard for maximum security.
- 12 words: 128 bits of security (2^128 combinations)
- 18 words: 192 bits of security (2^192 combinations)
- 24 words: 256 bits of security (2^256 combinations)
For more technical details, you can read the official BIP39 specification on GitHub.
Is the order of the words important?
Yes, the order is absolutely critical. You must write down and enter the words in the exact numbered sequence your BitBox02 displays. A different order will create a completely different, empty wallet.
Are the recovery words the same as my device password?
No, they are completely different. Your password unlocks your physical BitBox02 for daily use. Your 24 recovery words are your master backup and should only be used to restore your wallet on a new or reset device.
Can I create my own list of recovery words?
For maximum security, you should always use the recovery words generated by your BitBox02, as its secure hardware is designed to create a truly random number. However, it is technically possible for advanced users to generate their own randomness using dice. This is a complex process and only recommended for experts. You can learn more about this method here: Roll your own Bitcoin seed