Three different secrets protect a hardware wallet, and mixing them up leads to mistakes. This guide is part of our guide to hardware wallets explained.
- Unlocks one device
- Wipes after repeated wrong tries
- Forgotten? Restore from your phrase
- Is the wallet
- Works on any compatible device
- Lost? No reset exists
- Opens a separate wallet
- Protects stolen words
- Forgotten? Those funds are gone
The three secrets
| Secret | What it is | What it protects | Created by |
|---|---|---|---|
| PIN | A short number | Your device, if stolen | You |
| Seed phrase | 12 or 24 words | The whole wallet | The device |
| Passphrase | Your chosen text | A separate wallet | You |
The PIN
Your PIN stops someone from using your device. After too many wrong tries, most devices add delays or wipe themselves. It only applies to that one physical device. Someone who has your phrase can skip it entirely.
Use a strong, unique PIN, and do not make it your phone or bank PIN.
The seed phrase
Your seed phrase is the master secret. It can rebuild your wallet on any compatible device. It has no PIN and no lockouts. Whoever has it controls your funds. See how to write it down.
The passphrase
A passphrase is an optional extra, mixed in with your words. Each passphrase opens a different wallet. It protects you if someone finds your written words. See should you use a passphrase?.
What happens if something goes wrong
| What happens | Forgotten or lost | Stolen |
|---|---|---|
| PIN | Reset the device, and restore from your phrase | Thief still needs the device, so move funds if you can |
| Seed phrase | If the wallet still works, move your funds | Emergency: move your funds now |
| Passphrase | Funds behind it are lost | Attackers still need your phrase |
How they work together
Imagine that someone steals your device:
- With no PIN, they have everything.
- With a PIN, they need to guess it before the device wipes itself.
Now imagine that someone finds your paper backup:
- With no passphrase, they have everything.
- With a passphrase, they see only an empty or decoy wallet.
The PIN guards the device, and the passphrase guards the paper.
Common mix-ups
- "I changed my PIN, so my stolen phrase is safe." It is not. The PIN has nothing to do with your phrase.
- "My passphrase is my PIN." They are separate.
- "My wallet password is my seed phrase." An app password only unlocks that app on that device.
For a broader look, see passphrase vs PIN vs password.