How can Electrum restore a wallet?

Question

I've some questions about the technique of storing and restoring a wallet using Electrum.

1. I found out that Electrum stored a file on my PC. This file has my wallet's name so I think this file contains my bitcoins. If I deleted this file, my money will be lost forever, Am I right?

2. I have 12 words (The seed). Will those words restore the file if it is deleted? Or Are they just used to restore password?

3. What are all the things that I need to restore my wallet? (Eg. the file, the seed, the password, private keys, ... etc)

Thank you so much,

Answer 1

1)2) Electrum uses so called "Deterministic wallets". In short this basically means that your entire wallet can be recovered using the seed.

Even if you delete the wallet file/ have no private keys, the seed will give you full access.

3) Either every private key of each adress that you used, or the seed.