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Glossary

Passphrase (25th word)

In short

A passphrase is a self-chosen extra word added to the seed phrase. Together they generate a separate, "hidden" wallet. Even someone who finds your 12 or 24 words cannot reach your funds without the passphrase.

The passphrase is a strong tool against physical theft of the seed phrase — but with a cost: forget it and the hidden wallet is lost for good, since it cannot be reset anywhere. For advanced users, not day one.

Is the passphrase stored together with the seed phrase?

No — keep them separate, or you cancel the protection. Storing both in the same place gains you no security.

Information, not investment advice. More of this? The newsletter.