Your wallet’s encrypted password offers you extra security by requiring this password whenever you:
- Send a transaction or sign a multi-signature transaction
- Export your wallet
- Access your backup phrase
This password encrypts the 12-word recovery phrase, so that if someone were to gain access to your device, they would need the password to be able to access the cryptocurrency stored in your BitPay wallet.
This password cannot be recovered or reset, and the only way to recover a wallet in case you have forgotten the password is by the 12-word recovery phrase. I forgot my wallet's encrypted password. What can I do? It is extremely important to make sure you have the recovery phrase before setting a password.