This was a really creative idea, and it worked well too! The gameplay was a little confusing at first, but after a while I got the hang of it, and it was actually pretty smooth to control, so good work! The stats in the top left were a nice addition too, especially the possible combinations one. One problem was that the game is too chance-based, I think - there's not really a viable strategy other than collecting all the bits and just getting a letter that way instead (Though the one time I did correctly guess a letter was satisfying). Overall it was a cool concept, and it was implemented well, so good job!
Many thanks for your feedback!
To counter the randomness, there will spawn green bits (0 and 1's) around the level. If you collect 8 of them you will get 1 correct character.
They spawn randomly within 10 seconds, but if you get one a new one will spawn immediately.
This way it's a bit encouraged to stay alive as well. It can really help to get the first few characters of the word.
When you know what character you want dying could be the faster method if you are already close to the correct one.
As Rileys Legacy already suggested, I should have made a tutorial level ;)