Sparrow

Sparrow documents support for single-signature and multisignature Bitcoin wallets, PSBT workflows, coin selection and hardware wallets. The quick start distinguishes software keystores, connected hardware, air-gapped hardware and watch-only public-key setups. A wallet file therefore does not necessarily contain the private keys needed to spend.

The official guide also explains server choices. A public server is convenient, but shares wallet information with its operator. A private node or server changes that privacy relationship.

Choose whether Sparrow will hold keys or coordinate a separate signer. This is a security architecture choice, not a theme preference. A watch-only wallet can help you receive and inspect activity without bringing the signing secret onto the online computer.

Next decide how much transaction detail you want to manage. Coin selection and labels can make past activity easier to understand, but require deliberate record keeping. If you cannot explain what a selected input is doing, spend time with a practice wallet before using advanced controls.

Keep records of the wallet type, script choice and account configuration alongside your recovery plan. For multisignature, know which public wallet policy records and independent signing keys are needed. Reinstalling the app does not reconstruct every policy decision automatically.

Protect public wallet information too. An extended public key cannot normally sign a transaction, but can reveal linked addresses and activity. Do not paste it into unrelated websites for convenience. Decide who operates the server that receives your wallet queries.

• Does this wallet file hold private keys or only coordinate a signer?
• Who sees your address and balance queries?
• Have you verified the software download?
• Can your recovery record recreate the exact wallet policy?

Desktop software and an external signer can complement each other. Comparing them as interchangeable products hides the difference between creating a request and authorizing it. We have not performed a software audit or our own recovery test.