Topic: Explanatory writeup for beginners who are starting off with crypto wallets (Read 145 times)

PIN and password are just encryption for the app/wallet file on the particular device which can secure your funds in case you lost your device so someone without knowing the PIN or password can't able to access the wallet and they can't even open it via with wallet file like with electrum because it will be encrypt the wallet file that can be decrypted on when you enters the PIN. It does offer some security.

Seedphrase is your master key and all the private keys are created from the seephrase so in case if someone accessed your seedphrase then PIN is useless in this case because they can import the whole wallet into a different device.

All that you did mentioned was an elaborate explanation with almost no need to further explain as they are the exact wallet basics for beginners but then little ideas can be added to this because it s not exactly all that you needed to know about the wallet, you may also have some other knowledge that will be needed but i believe they will come by experience as you continually use the app after a while because in the crypto space you cannot know everything all at once.

In some of the apps that I use, I find it quicker to access if I use biometrics. There's indeed risk into it and the same goes with the passcode.

This is true. The security still depends on how the user does things with their wallets. Even if someone is using a hardware wallet or a secured wallet but then became a victim of phishing and entered their important details, those strong passwords, those strong wallets that they use becomes useless.

All are fraught with risks, not only in biometric safety, but the safety of the device is the most important.
No matter how sophisticated the security is, if the user is ignorant and does not think about security, then it will be useless and easy to hack.

You can see how the most advanced security can be easily breached by Xenomorph which is a malicious Malware that can attack anyone,
targeting all crypto wallets and banking applications

https://www.threatfabric.com/blogs/xenomorph

Passcode is my favorite choice, not Biometrics.

I see more risk with Biometrics than with Passcode and I don't use Unstoppable wallet but I think it has alternative way to access and recover a wallet if Biometrics verification fails.

Anyway I really don't want to go to hassle with Biometrics verification failure and struggle to access or recover the wallet with other information. Biometrics is not a perfect solution against hacks, compromise while there is risk existence that I don't want to take.

The Real Risks of Biometric Authentication

I mean Pin and Password doesn't require any explanation as it's not even Crypto only or Bitcoin only thing. Pin are used in your Phones to unlock while Password is required to login to your email, which the newbies used to create an account here. So that is just a filler in my honest opinion. About Seed Phrase and Passphrase, they both are same just in a different format that's how I think I can conclude it.

This is a simple explanation. It serves as the basic for beginners understanding of crypto wallets. For beginners who may not know this, note that your crypto is not stored in the wallet rather it is stored on the blockchain which is a digital ledger that records crypto transactions and tracking cryptocurrency. Your crypto wallet only stores your wallet public address and your seedphrase. Think of the former like your Facebook username and the later like your Facebook password. You know you don't want to be sharing you password with anyone one that is why we emphasize the how important  it is to keep it secure.

Yes, Unstoppable also uses a passcode like other multi wallets and also uses Biometrics to make it easier with Secure fingerprints or not depending on the user


Yes it is an optional setting, I use it now, and it is quite helpful to secure the transaction before it is sent.
Some other Multi wallets also include a PIN before making a transaction, and this is quite common.

Now it's just how to secure the wallet for mobile Wallet users, don't forget the Password and PIN and Don't store the Seed Phrase in a place that is easy for others to know or even hack by others. Store in Offline place or use Online storage with double security for Seed Phrases.

Trustwallet is not a recommendable bitcoin wallet. This also reminds me of Unstoppable wallet, it is also making use of passcode.


Yes, Bluewallet makes use of password. Electrum wallet also make use of password. But for making transactions on mobile Electrum, you can set pin.

It's a password, it asks password before you can open it on the app either the PC version or the Android version.

Passphrases and seed phrases are the most important in having a crypto wallet since it's not easy to break by hackers due to mixing characters if you're using a passphrase and 12-words seed phrase.

As an old saying in having a crypto wallet, "Not your keys, not your coins".
Thanks OP for the further explanation between those wallet securities.

Bluewallet allows the use of pin likewise mycelium
I don't know if electrum does though.
The essence is to protect the app from unauthorized access.
Just like protecting Seedphrase is important, the device itself should be secured.

I have never used a wallet that required a pin before. I only use reputable wallets like Electrum and Blue Wallet. The passwords only encrypt the wallet files inside the Electrum folder of that device. Pins and passwords are useless if a third party gets hold of your seed phrase. They can access your wallets and move your coins.

You can set a six digit passcode on Trust wallet. I guess there are other wallets that do this also.

Depends on each wallet software, but I remember that you will have to either set up your wallet password before you are given a wallet seed phrase or you will get a wallet seed phrase first, then retype it to confirm that you did backup seed phrase correctly, and then you will need to set up a wallet password.

I can not remember all but it can be before or after you reach to a step of seeing a wallet seed phrase during wallet setup process. It's not big deal, before or after because if you have a wallet seed phrase, you can recover it anytime, without the wallet password.

[GUIDE] How to Create a Strong/Secure Password
Are your passwords in the green?

Password is set after you have created the wallet.

All the wallets that I have used before all requested to set password and not pin. But pin and password are similar and it would be set after the wallet has been created also, just like the password.

The seed phrase is not longer than 24 words if you need a compatible wallet for it.

Seed phrase is not similar to private key. Seed phrase generates the private keys, public keys and addresses. The private keys can generate the public keys and addresses but it can not generate the seed phrase. Seed phrase is important because it can generate the private keys.

Web, mobile and desktop wallets can support passphrase.

No. It generates different keys and addresses which makes your seed phrase to be more secure against offline attack.

There is nothing hard about it. Just know that everything you type counts. Even space is part of characters in passphrase. Yes passphrase is case sensitive.

Yes, on the device. But if the seed phrase is known, pin or password are both useless because only the seed phrase is needed to steal the coins. But if the seed phrase is extended with passphrase, it would be helpful if you used it while setting up the wallet as it will generate different keys and addresses.

Also same to passphrase. If passphrase is used, it is just like the seed phrase if lost because you will not be able to recover your keys and addresses. Which means you will not be able to recover your coins.

This is a nice compilation especially on the security of password and pins
But I would like to contribute something's
First, password and pins do not secure private keys but prevent unauthorized persons in accessing your wallet.
If you want to protect your holdings make sure your seedphrase and private key are properly kept.

A seedphrase is not explicitly the master key but a way or method to derive the private key.
Private key shows sign of ownership while seedphrase helps in gaining access to the wallet. 
Also paraphrase doesn't necessarily create hidden wallet address (I guess it's the wording) but allows the creation of another wallet based on your seedphrase
Which helps adding another layer of security.

 It's been two days now since I did some teachings about crypto wallets basically, and I learnt that some beginners are confusing Password and Passphrase as same, some even believe that with PIN code and passwords makes your crypto assets safer, well not likely and not worth the reliability.

I will like to break the differences on here right now, let's starts with Password.

1. PASSWORD

Passwords contains letters, numbers and symbols.
You can only use them to open wallet once you lock your phone or quit the wallet app.
This is something you set at the beginning before creating a new crypto wallet.

It is no different from outing locks on your phone so that someone can go into your gallery, call history and apps.

2. PIN

PIN contains Numbers only.
Can be used to open wallet after you quit the wallet app.
You can set in the beginning too, just like normal passwords.

This is very similar to password, symbols and letters is what PIN don't do.


3. SEEDPHRASE

This consists 12-24 words or even more.
They are automatically generated by your wallet app.
Similar to Private key.

This works like the master password, this is the main keys to your crib, the ONE that needed to be safely kept like your life depends on it, and make sure you store in a offline location where no one can get to.

If this gets leaked, your crypto assets will be stolen, even if you change your smartphone 100s of time it is already over.

4. PASSPHRASE

This is a feature included in today's hardware wallets.
This also unlocks hidden wallet addresses.

I believe this passphrase is best for pro crypto users that are not new to crypto wallets because it can be too complex for beginners, passphrase is case sensitive (Upper case, Lower Case)

Passphrase is like taking a step further in security wise, this is present in Tangem wallet for example and many other hardware wallets, with passphrase you are creating it, unlike Seedphrase where it is automated.

So that's it, PIN and Password will only stop your friends or family members from unlocking your crypto wallet behind your back, just like how your PIN and Password stops anyone from unlocking your smartphone, and that's it.

On the other hand, Seedphrase is not to be taken lightly, it is your ultimate key protecting those juicy crypto assets of yours, keep em save, offline and in a open source cold wallet.

Have a blessed day.