Using a #passphrase adds an extra layer of security to #Bitcoin holdings.

With BIP 39, users can generate a mnemonic phrase to back up their wallet. However, by adding a passphrase to this mnemonic, known as BIP 39 passphrase extension (BIP 39-encrypted wallet), users create a "hidden wallet" within their existing one.

This effectively acts as a #secondFactorAuthentication, safeguarding against unauthorized access even if the mnemonic is compromised.

This method significantly boosts security, making it a prudent choice for anyone concerned about protecting their #BitcoinAssets.