CRYPTO GLOSSARY

Passphrase

An optional extra you choose and add to your seed phrase. A different passphrase gives a completely different wallet.

Passphrase in more detail

A single seed phrase is a single point of failure. Whoever finds it has everything. Passphrases and multisig are the two standard ways to fix that. Both add safety and both add ways to lock yourself out.

The seed phrase standard, BIP39, includes an optional extra: a passphrase you choose yourself. It is sometimes called the 25th word, though it can be any text.

The wallet combines your seed phrase and your passphrase to produce its keys. A different passphrase gives a completely different wallet.

FROM LESSON 38 · 5 MIN READPassphrases and multisigA passphrase and a multisignature wallet both remove the single point of failure in a seed phrase. Learn how each works and the new risks each brings.Read the lesson

All 128 terms · Checked against the lesson's sources on 8 October 2026.

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