The words overlap, and that causes real mistakes. This guide clears up the confusion. It is part of our guide to the BIP39 passphrase.
Quick comparison
| Term | Where you meet it | What it does | Can it be reset? |
|---|---|---|---|
| Password | Websites, apps | Logs you in to an account | Usually |
| App password | Software wallets | Encrypts data on this device | Restore from phrase |
| PIN | Phones, hardware wallets | Unlocks a device | Reset the device, restore from phrase |
| Passphrase (everyday) | Any login | A long password made of words | Usually |
| BIP39 passphrase | Crypto wallets | Opens a separate wallet | No |
| Seed phrase | Crypto wallets | Is the wallet | No |
Two meanings of "passphrase"
In everyday security, a passphrase is just a password made from several words. In crypto, it usually means the BIP39 option, also known as the 25th word. Both use random words, but only the crypto one becomes part of your wallet's maths.
Wallet makers use different names too: "passphrase", "optional passphrase", "hidden wallet" and "25th word" all refer to the same feature.
Password in a software wallet
When you set up a wallet app, it may ask you to create a password. This encrypts your keys on that phone or computer. If you forget it, restore your wallet from your phrase. It is not your recovery phrase, and it does nothing on another device.
PIN on a hardware wallet
Your PIN unlocks the device. It has no effect on the wallet's addresses. See PIN vs seed phrase vs passphrase.
BIP39 passphrase
This is part of how your seed is created. Change one letter, and you get different keys. No company, device or support team can recover it. See forgot your passphrase.
Mistakes this confusion causes
- Thinking that a wallet app's password protects a stolen seed phrase. It does not.
- Assuming that a BIP39 passphrase can be reset like a password.
- Entering a device PIN where a passphrase is requested, which opens a different wallet.
- Using a password you already use elsewhere as your passphrase.