In the context of Bitcoin a “backup phrase” usually refers to a mnemonic seed phrase or recovery phrase. A mnemonic seed phrase is a list of words, typically 12, 18, or 24, that represent the private key or keys for a Bitcoin wallet. It serves as a human-readable backup of your wallet and is essential for recovering your funds if you lose access to your wallet, such as in the case of a device failure, loss, or theft.
When you create a new wallet, you will be given a mnemonic seed phrase that you must keep secure and secret. It’s crucial to write it down on paper or store it in another secure, offline manner. Anyone with access to your seed phrase can potentially gain control of your cryptocurrency holdings, so it’s essential to store it safely.
If you ever need to recover your wallet or import it into a different wallet software, you’ll be prompted to enter your seed phrase. By providing the correct sequence of words, you can regain access to your bitcoin holdings.