If you select the Advanced option when setting up your Blockstream Jade, you will be asked whether or not you want to enable a passphrase. Enabling a passphrase gives you the ability to add an extra layer of security to your funds by requiring an additional piece of information to access your wallet. Jade uses the BIP39 passphrase standard. How do passphrases work? Simply, the passphrase you enter is added to your Jade's recovery phrase or SeedQR and is used to create your wallet. To demonstrate this, let's assume our Jade generated the following recovery phrase. arrow garment kite truth yellow pelican roast latin discover jewel describe merry polar equip pistol next forest dignity kick word steel seminar actual genuine If you enable the passphrase feature and enter a passphrase of "abc", the information used to generate your wallet will be your recovery phrase and "abc". However if you login to your Jade again and enter a different passphrase, for example "abcd", an entirely different wallet will be created than before. Your Jade will only store your one recovery phrase, but any number of passphrases can be entered to change the wallet you will log into upon each session. This means even a slight change to your intended passphrase will lead to a different wallet, so make sure to keep it backed up and protected! Recovery phrase: "arrow garment kite ..... seminar actual genuine" + Passphrase: "bitcoin" = Wallet A Recovery phrase: "arrow garment kite ..... seminar actual genuine" + Passphrase: "bitcoins" = Wallet B Recovery phrase: "arrow garment kite ..... seminar actual genuine" + Passphrase: "bit coin" = Wallet C Recovery phrase: "arrow garment kite ..... seminar actual genuine" + Passphrase: "(field left empty)" = Wallet D Note: Your Blockstream Jade will not store your passphrase, so you will need to enter it every time you login. Why would I use a passphrase? There are several reasons why you might want to enable a passphrase: Passphrases give you the ability to use different wallets on the same network, with only one Jade. This is because each unique passphrase leads to a different wallet. Using a passphrase provides an additional layer of security - since any possible attacker can gain access to your PIN and recovery phrase, but will be unable to spend your funds without your passphrase. Why would I choose not to use a passphrase? You may choose to avoid using a passphrase because: You will need to enter the passphrase every time you log in to your Jade. If you forget or lose your passphrase, you will permanently lose access to your funds - even if you have your recovery phrase.