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Adding a passphrase layer creates a separate wallet accessible only with your seed phrase plus passphrase. This feature enhances security by allowing multiple wallets from a single seed phrase—useful if you want to compartmentalize holdings or add a layer of protection if one wallet is compromised.
8. Reputation and Longevity
A company's track record matters. Longer-standing companies with numerous years in the space, a history of trustworthiness, and transparent practices are typically safer bets.
Common Misconceptions and Pitfalls
Not all features advertised as security enhancements genuinely increase safety. Here are a few misconceptions I want to clarify: