Simple explanation of Ledger passphrase

Bitcoin daily isn’t even daily. As if.

Reading Ledger’s description of using passphrase didn’t make sense to me until using it a while. It’s pretty simple once you get the hang of it. Plug in your Ledger. Go to settings -> Security -> passphrase -> set temporary.

You should use “set temporary” as your choice when using a passphrase because a pin can be hacked. Also, you shouldn’t leave your passphrase protected “secret” wallet listed in your Ledger account, which is exactly what adding a PIN to a passphrase does. Instead, the most secure way to use a passphrase is to only load the wallet for transactions or to check your balance. This way even if you are compromised by a 5 dollar wrench attack you have plausible deniability. Only you know that there even is another account. You could have ten accounts even, all with different passphrases and different quantities of crypto. You could have a hundred passphrase protected accounts, each with 1% of your crypto. Maybe that’s what uber whales do.

So everytime you type a passphrase into your Ledger device, you can create a wallet connected to that passphrase. And if you don’t save that new wallet it goes invisible because your Ledger app hasn’t connected to it until you type the passphrase again and then load a wallet. That wallet has your crypto so as long as you remember your passphrase you can always access the crypto in the wallet, no matter how many times you delete it from the Ledger app.

Although plausible deniability is an additional advantage of using a passphrase, the main reason is to enhance cryptographic security, making your encrypted cash much harder to hack even if the seed words are compromised. Pick a password that has strong encryption. Use a string of words followed by a string of numbers. Here’s a password example:


You can also add a cypher for greater complexity.

Last updated: December 25, 2019


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