1| Private Key
We all know that the private key is the most critical component to manage and control your assets. For all the digital currency users, a private key means ownership, and you can control your corresponding cryptocurrency assets only when you hold the private key. In short, if you lose your private key, you will lose your cryptocurrency assets!
The private key is composed of a 64-bit hexadecimal character generated by the encryption algorithm, just like this: 5KYZdUEo39z3FPrtuX2QbbwGnNP5zTd7yyr2SC1j299sBCnWjss
The generation method of the private key is completely random, it has 64th power of 16 times probabilities, that is, 256th power of 2. One wallet has only one private key and cannot be modified. Normally, the probability that two people have the same private key is almost zero.
But the form of the private key is difficult to store and memorize, which is why there are memorizing words tool.
2| Recovery Phrase
A mnemonic phrase consists of 12-24 words, and it can generate an infinite number of private keys. It can be understood as the root of a tree, this root can have many branches, and every leaf is a private key. Different cryptocurrencies in Cobo wallet are different branches, that's why a mnemonic phrase can manage all the wallet addresses under the HD account.
In other words, the mnemonic phrase is another form of the private key, it converts a 64-bit private key into several common English words to be easier to memorize.
When you create a Cobo HD wallet, there will be a function to back up your mnemonic phrase. Click on <back up >, enter the PIN number, and you will see 12 words, that's your mnemonic phrase. One HD wallet should only have one mnemonic phrase and cannot be modified. PLEASE RECORD THIS MNEMONIC PHRASE IN A SAFE WAY AND PLACE!
To sum up it: Cobo HD wallet is designed by BIP44 protocol rules. It makes our Cobo HD wallet very powerful. Users only need to save the mnemonic phrase to control all the cryptocurrencies in their wallet accounts.
The mnemonic phrase generates the private key, the private key is used to authorize the management of digital assets; backing up the mnemonic phrase is backing up the private key. HD wallet users hold their own mnemonic phrase, and Cobo HD wallet does not store any users' mnemonic phrase and private keys.