Setup & Backup

Should You Enable a Passphrase? When the Advanced Option Makes Sense

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Passphrase is Ledger's optional advanced feature on top of the standard recovery phrase. Turn it on and you set an extra custom string; the device then derives a brand new 'hidden wallet' from the 24 words plus the passphrase. That hidden wallet is independent — different addresses, different balances — from the default one.

Passphrase is not for everyone. Its value only shows up in one extreme scenario: the device or the phrase falls into someone else's hands and you still want the bulk of the assets to survive. For most holders, a well-stored phrase and a long enough PIN are already enough.

Who benefits from enabling a passphrase

  • Holders of large positions who want a 'decoy wallet' on the default phrase.
  • People who travel with the device and want a plausible-deniability layer.
  • Multi-sig or team treasury setups where the passphrase is part of an agreed protocol.

The cost of enabling it

You now have to remember and back up the passphrase too. Forget the passphrase and the hidden wallet is unrecoverable even with the 24 words.

Safety reminder: Use only the official Ledger site and Ledger Live. Never type your recovery phrase or PIN into a webpage and never share them with anyone. Pause and verify the moment anything looks unusual.

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