Linux doesn't display anything when you type your password. no asterisks, no dots, no nothing.
After entering passwd
on the command line and pressing enter type your password at the command prompt, nothing will display but that's ok.
Raspberry pi document say:
Enter passwdpasswd on the command line and press Enter. You'll be prompted to enter your current password to authenticate, and then asked for a new password. Press Enter on completion and you'll be asked to confirm it. Note that no characters will be displayed while entering your password. Once you've correctly confirmed your password, you'll be shown a success message (passwd: password updated successfully), and the new password will apply immediately.