How to set up a passphrase on Ledger? (Hidden Accounts)

Understanding Passphrase Functionality

1. A passphrase acts as an additional 25th word to your BIP-39 recovery seed, generating entirely separate wallet structures.

2. When enabled, the same 24-word seed produces different addresses and balances depending on whether a passphrase is entered during device unlock.

3. Ledger devices do not store or remember passphrases — each entry must be manually input every time the device is unlocked.

4. No visual feedback appears on screen while typing; characters are never displayed for security reasons.

5. Entering an incorrect passphrase leads to access of a valid but empty wallet — no error message is shown.

Step-by-Step Passphrase Activation

1. Connect your Ledger device and enter the PIN to unlock it.

2. Navigate to Settings > Security > Passphrase.

3. Toggle the option to Enable passphrase protection.

4. Confirm the change using the physical buttons on the device.

5. The device will reboot and prompt for both PIN and passphrase upon next unlock.

Device-Level Security Considerations

1. Passphrases are case-sensitive and support Unicode characters, including spaces and special symbols.

2. Ledger does not validate passphrase strength — users bear full responsibility for memorizing or securely storing their chosen phrase.

3. If the passphrase contains non-ASCII characters, ensure consistent keyboard layout and input method across all future access attempts.

4. Physical access to the device remains required for transaction signing — no remote or software-based bypass exists.

5. Recovery via the 24-word seed alone yields only the default wallet; the passphrase is mandatory to access hidden accounts.

Interaction with Ledger Live Desktop

1. Ledger Live does not display or manage passphrases — it treats each passphrase-derived account as a separate wallet instance.

2. Users must manually add accounts in Ledger Live by selecting “Add account” and choosing the correct derivation path after entering the passphrase on-device.

3. Balances from passphrase-protected accounts appear independently in Ledger Live’s portfolio view.

4. Transaction history for hidden accounts is fully visible within Ledger Live once the correct passphrase has been used to unlock the device.

5. Exporting transaction data or generating reports includes only those accounts currently accessible under the active passphrase session.

Frequently Asked Questions

Q: Can I use the same passphrase across multiple Ledger devices?A: Yes — identical passphrases applied to identical 24-word seeds produce identical hidden wallets on any compatible hardware.

Q: What happens if I forget my passphrase?A: There is no recovery mechanism. The hidden wallet and its assets become permanently inaccessible without the exact phrase.

Q: Does enabling passphrase affect firmware updates?A: No — firmware updates proceed normally regardless of passphrase status, and do not alter or erase passphrase-related configurations.

Q: Can I disable passphrase without losing access to hidden accounts?A: Disabling passphrase only affects future unlocks. You retain access to hidden accounts only if you re-enable passphrase and re-enter the original phrase.