How To Create Infinite Bitcoin Wallets (Passphrase)

Join Bitcoin University Premium:
https://www.bitcoinuniversity.com/join

In this video, I discuss how to add a passphrase to your recovery seed in order to create basically an unlimited number of wallets that can be used to segregate family holdings, provide a decoy wallet to be used with thieves, provide inheritance planning, and many other uses.

Using passphrases makes it possible to generate approximately 5.9 × 10^197 different wallets based on your original seed words.

Not investment advice! Consult a financial advisor.

BIP39 word list:
https://github.com/bitcoin/bips/blob/master/bip-0039/english.txt

Metal Bitcoin Seed Storage Reviews:
https://jlopp.github.io/metal-bitcoin-storage-reviews/

Add a BIP39 passphrase for Jade:
https://help.blockstream.com/hc/en-us/articles/20138948637337-Add-a-BIP39-passphrase-for-Jade

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos. My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#Bitcoin
#passphrase

Disclaimer
Neither Bitcoin University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video, on this YouTube channel, or at www.Trader.University or www.BitcoinUniversity.com (henceforth, “the Sites”) should be construed as such by you. This video, channel, and the Sites should be used as educational tools only and are not replacements for professional investment advice. Trading or investing in new and volatile assets like Bitcoin can be risky.

This is Matthew crder from Bitcoin University and today I want to teach you how to create infinite Bitcoin wallets well maybe not infinite but here’s still a really cool way to extend your Hardware wallet so we’re sort of continuing this series that we’ve been doing over the past few days you have a

Backup to your Hardware wallet which is usually a 12-word recovery seed or a 24-word recovery seed and you may sometimes hear these referred to as a pneumonic seed or a seed or recovery phrase or a backup they’re all the same thing it’s basically a human readable version of your Hardware wallet’s

Private keys of its Master uh Master private key and it looks something like this it’s 12 English words in a certain order if you change the order it’s a completely different recovery seed these 12 words do need to be picked by the random number generator in your Hardware

Wallet so don’t attempt to pick your own words from the bip 39 Library which I’ll show you in a minute also people have asked 12 words is plenty you don’t need to use 12 24 words though some wallets do make 24 words the standard but 12 words is sufficient security if you have

12 words uh a 12-word recovery seed that means they’re two to the 128th possible recovery seeds when accounting for the check sum which I’m not going to go into here and you can see what number this is it’s a very very large number it’s um no

One is going to guess your 12 words it’s the good news this is the bip 39 Library the main version is the English version but I just realized I hadn’t realized before that there are different versions for a lot of major languages uh there’s two Chinese versions here the simplify

And traditional there’s french there’s Italian there’s Japanese and Korean Etc but I’d say the English is the standard version these are 2048 words and these are the words that your Hardware wallet selects from and then puts the words in a certain a certain order they’re generated randomly

As we said so don’t don’t go through this library and pick 12 words that will not be random enough in some someone will be able to brute force your recovery seed so what we’re going to be talking about in this video is something called the passphrase and the passphrase

Is just a word or series of words that’s added to your recovery seed in order to create a completely new wallet that has its own transaction history has its own Bitcoin addresses in fact your 12-word recovery seed when used alone is actually a passphrase wallet with a

Passphrase part of it left blank so if you have your 12 word recovery seat and you add the number one to it that that creates a completely new wallet if you add the number two to it it creates a completely new wallet if you add a word

Like corn that’s a completely new wallet corn all lowercase corn with a capital letter at the beginning of the word or corn all capital letters these are all completely different Bitcoin wallets each with their own transaction histories and when you open up your Hardware wallet you’ll usually need to

Enter that recovery seed at the uh I’m sorry you’ll need to enter the passphrase at the time in order to access that wallet and the passphrase is never stored on a hardware device so here’s how to create separate Bitcoin wallets for example for your kids for your business on the same Hardware

Wallet you could have your 12w recovery seip plus Eric if your two kids are named Eric and Susan one could be you add Eric as a passphrase the other one you could be you add Susan and then you could have the wallet without the pass phrase just the 12w recovery seed that

Would be its own wallet as well you have to be careful doing this because if you were to add capital E Eric that would be a completely different wallet from lowercase e Eric another way of using a passphrase is you could send all your kyc Bitcoin Holdings to one passphrase

Wallet and all your non-k kyc Bitcoin Holdings to another passphrase wallet kyc again is just Bitcoin that has your personal information associated with it because you bought it for example on a crypto exchange if you’re finding this video helpful so far I just ask you to help out the channel by subscribing that

Really helps this Channel’s reach hit the like button leave a comment question suggestion for a future topic and also share this video with a friend or family member now the pass phrase that’s added to your 12-word recovery seed it can be up to 50 characters long it’s K

Sensitive and spaces count so these are all completely different pass phrases pass phrases capital P passphrase lowercase p passphrase pass phrase with a space in the middle pass phrase with a hyphen in the middle this would create four different wallets Now using past phrases makes it possible to generate a

A approximately 5.9 * 10^ 197 different wallets based on your Original Seed word so this is not infinite Bitcoin wallets as we said at the beginning but close enough in human terms this is an enormous number that’s greater than the number of known atoms in the known universe passphrases can

Also be used to hide your Bitcoin Holdings even further so you can use them to generate a number of decoy wallets so for example you could have a decoy wallet which is just your 12 words your regular Hardware wallet and maybe you put uh 01 Bitcoin in that

And then you have a real wallet that has your big Bitcoin Holdings and that would be 12 words plus your pass phrase of choice and maybe you put one Bitcoin in that so if someone if you’re attacked by someone or someone gets a hold of your Hardware wallet they’ll be able to

Access the 01 Bitcoin but unless they know your passphrase they’ll never be able to access the the uh your your larger Holdings of Bitcoin or you could make a number of decoy wallets you could have the first decoy decoy Wallet be no passphrase and you put put 01 Bitcoin in

There and the next decoy wallet because maybe the thief knows about these decoy wallet so he says give me your passphrase you give him your passphrase and that wallet has 0.1 Bitcoin in it and then your real wallet that has uh 12 words plus a different passphrase

Passphrase B that would have your full Bitcoin in that so there many many different variations you can do here in personal circumstances are all different another nice thing about passphrases is they allow you to it’s still extremely important to store your recovery seed your 12 words in a safe place you can

Store them on metal as we talked about uh a couple days ago you stamp them on metal to help protect them against if your house is flooded or catches on fire the nice thing is if you’re using a passphrase if someone comes across one of these metal plates and again you

Should keep it really hidden but if they were to come across it they would not be able to access your Bitcoin that’s in the P phrase wallet or P phrase wallets andless unless they knew your passphrase now they could try to brew force it maybe they create a passphrase wallet

Using your name or using the word Bitcoin or something like that so given enough time things can be brute forced but is this is really another layer of protection using a passphrase I’m going to link in the description notes below to this article about how to add a a

Passphrase to the blockstream Jade which is the hardware wallet we’ve been covering on this channel how to pick a passphrase for yourself one way of doing it is to pick four to six English words or whatever language what you have and then string them together you could string them together all uppercase or

All lowercase or spaces between the words whatever you do just make it consistent and easy for you to remember the reason to pick four to six words I’d say any shorter than that and it would be easier to brute force your passphrase if someone has your 12 words or has your

Wallet they could enter a bunch of different passphrases any longer than 46w passphrase and it may be difficult to memorize or you may make other mistakes so for example of P phrase and please don’t use this and I’m obviously not using it but you could say Bitcoin University YouTube channel anything with

Bitcoin probably isn’t very uh secure because people are going to try using the word Bitcoin in various ways but this would be an example of a passphrase and as long as no one had my 12 word recovery SE that’s the really hard thing that’s the thing that’s impossible to

Brute force and so that’s where your real protection is but the passphrase as we said adds another layer of protection store your passphrase in a completely different location from your 12-word recovery seed you can try just keeping your Pass rates memorized but I think this is quite dangerous if you get hit

On the head or die suddenly or something like this and the human brain is a very fragile thing even in young healthy people you can certainly forget things so it’s probably a good idea to have a written down version of your pass phrase stored somewhere just be sure to store

It in a completely different location you may want to stamp it in the metal like you do with your recovery seed so it’s not going to be destroyed by water or moths or by fire your 12-word recovery seat should never this is your your 12w recovery seat it should never

Be entered online as we’ve talked about yesterday’s video should never be uploaded digitally to the cloud or sent in an email or text or photographed Etc but I’d say it is safe to store your passphrase not your 12w recovery seed but your passphrase it is safe to store

It in something like an endtoend encrypted password manager like bit Warden even if you have some sort of leak with your browser or with bit w is unless someone has your 12w recovery seat they won’t be able to use his P phrase in any way so you have to think

About your own situation if someone has your 12-word recovery seat as we said though they can attempt to brute force your passphrase wallet so don’t just use Bitcoin for example as your passphrase don’t use your name as your passphrase don’t use anything obvious as your passphrase that someone may be able to

Guess for example like the city you live in or something like that here’s another cool fact past phrases are never stored on a hardware wallet but need to be entered every time this gives you additional security if your Hardware wallet were to be stolen or compromised also if you mistype your passphrase

You’ve just created a brand new wallet so for example Capital Eric or lowercase Eric as we talked about before so be very careful with this there’s no such thing as a wrong passphrase if you make a mistake in your passphrase you will create an entirely new wallet so I think

It’s important to always send a small test Bitcoin transaction to to make sure that you have your 12-word recovery seed and passphrase correct what you should do is set up your recovery seed and passphrase send a very very small amount of Bitcoin there wipe the wallet and try

To reconstitute it and see if your bitcoin’s there that way you can be sure that you have the correct recovery seed and passphrase here’s another use for a passphrase you could consider using it in inheritance planning as well for example you give your passphrase to your child or your descendants you give your

12-word recovery seed to a trusted relative or lawyer or accountant in a sealed bag now again if someone has your 12-word recovery seed and they’re a hacker they could attempt to brute force your passphrase so you only want to do this to someone you really trust and you

Probably want to put it in a sealed Bank bag as we talked about yesterday in this case both your child and your lawyer or accountant would need to collude while you’re still alive to take your Bitcoin and again everyone’s circumstances are completely different so readjust all of

The suggestions I made in this video and adjust them to your own personal circumstances if you’d enjoy this video I’d also encourage you to check out my paid Bitcoin course in the private Bitcoin Forum people have been telling me that I don’t show this often enough and I figure it’s Christmas time it’s

The holidays might as well shell it these are all available at Bitcoin University premium both The Ultimate Guide to bitcoin course the private Bitcoin Forum where we’ve been having some very interesting discussions and so if you’re interested in joining this and you want to help to support the channel

In this way I’ll put a link in the description notes below and you can take a look at the different courses is here and then if you’re ready to join you can just go to the join tab if you want to pay in Fiat if you want to pay using

Bitcoin either on chain or lightning you can click here and pay with Bitcoin if you enjoyed this video be sure to hit that subscribe and like buttons hit the notification Bell if you want to be notified when I publish my next video and let me know your questions and

Comments in the comment section below thanks all for watching and I’ll see you in the next video