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Wallets & SecurityBeginner

What a wallet passphrase is and what it opens

A wallet passphrase is a password that encrypts a wallet, and in many wallets it is an extra word added to your recovery seed that opens a hidden wallet.

Vahe HakobyanVahe HakobyanEditor-in-chief Updated Oct 5, 20263 min readFact-checked
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Illustration: World-Crypt
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Key takeaways
  • A passphrase can be a word added to your recovery seed.
  • The same seed plus a passphrase opens a hidden wallet.
  • Forget the phrase and that hidden wallet stays locked.
  • It is not the password that unlocks your wallet app.

A wallet passphrase is a password that encrypts a wallet. In many wallets, it also means a seed passphrase: an optional word or phrase you add to your recovery seed to open a hidden wallet.

What it does to your wallet

Your recovery seed normally opens one wallet. Add a passphrase and the wallet software combines the seed and the passphrase into a different key. That key opens a separate hidden wallet with its own addresses and balances.

One seed, two wallets
What you get Seed alone Seed plus passphrase
Wallet opened Standard wallet Hidden wallet
What you need The seed phrase The seed and the exact passphrase

How you use a passphrase

You turn the feature on in wallet software that supports it and choose the passphrase yourself. From then on, you must enter that exact phrase every time you restore or open the hidden wallet.

Setting one up safely

  • Confirm your wallet offers a seed passphrase before you rely on it.
  • Choose a long, unpredictable phrase, ideally one a password manager generates.
  • Write it down and store it offline, apart from your seed phrase.
  • Keep it out of the same note, photo or file as the seed.

Passphrase vs wallet password

These are two different secrets. A wallet password or PIN unlocks the app on the device you are using, and you can usually reset it. A seed passphrase is part of the key that opens the hidden wallet, and it cannot be reset.

Two different secrets
Point Seed passphrase Wallet password
What it opens A hidden wallet The app on your device
If you forget it That wallet stays out of reach You can usually set a new one

If you forget your passphrase

The hidden wallet is built from the exact passphrase, and there is no reset option. If you forget the phrase, restoring your seed opens only the standard wallet. Those funds stay out of reach.

Frequently asked questions

Yes. The new phrase opens a different hidden wallet, and the old phrase still opens the wallet it did before.

No. It depends on the wallet and the standard it follows, so check your own app before you count on it. Some apps use the term for a login password instead.

You get a different, empty wallet, and nothing warns you. That wallet is valid, so there is no error message that explains what happened.

It can, because the seed alone opens only the standard wallet. That protection depends on the passphrase staying secret and stored apart from the seed.

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Written byVahe HakobyanVahe Hakobyan is the editor-in-chief of World-Crypt. He covers bitcoin, markets and regulation, and leads the newsroom that fact-checks every story before it goes live.