1. Knowledge Base
  2. Vaults
  3. Set up hardware wallets

Does Unchained Capital recommend using a BIP38 pass phrase on top of my wallet?

No we do not!

While we understand the desire for extra security with securing your bitcoin, it becomes pointless if the greater complexity introduced, actually harms your security. We have found that in many cases, client who lose access to their funds isn't because of their lack of security--but too much.

With a BIP 38 pass phase (which you can learn more about here) you are introducing a secondary passphrase that is a layer on top of your bitcoin private key. If you don't understand that this 'secondary password' or '25th word' is really an extra layer of encryption that you absolutely don't need to access your bitcoin, it becomes very problematic. 

For this reason we DO NOT recommend using a BIP 38 passphase.