Ganzfried was born in 1804 in Ungvar, in the Ung County of the Kingdom of Hungary (present-day Ukraine). His father Joseph died when he was eight. Ganzfried was considered to be a child prodigy and Ungvar's chief rabbi and Rosh yeshiva, Rabbi Zvi Hirsh Heller assumed legal guardianship; Heller was known as ""Hershele" the Sharp-witted" for his piercing insights into the Talmud. Heller later moved to the city of Bonyhád, and Ganzfried, then fifteen, followed him. He remained in Heller's yeshiva for almost a decade until his ordination and marriage. After his marriage he worked briefly as a wine merchant.