This guide explains how to setup a Satochipđ hardware wallet with Sparrow to create a secure Bitcoin cold storage solution. If you havenât read the Quick Startđ guide yet, thatâs a good place to learn how to install and get introduced to Sparrow.
Why use a hardware wallet?
If youâve followed the Quick Startđ guide, you will already have Sparrow running with a software wallet. This is a good place to start getting familiar with sending and receiving Bitcoin transactions, and is a reasonable option to store small amounts.
However, if your balance starts to grow (to the point where you would care about losing it), then itâs time to consider purchasing a hardware walletđ.
Hardware wallets offer something that software wallets canât: theyâre electronic devices specifically designed to store your private keys offline and allow you to sign transactions. Its connectivity and functionality are very limited. Thatâs a good thing, because it means itâs very difficult to hack! In a connected world rife with viruses and other malware, hardware wallets represent a major improvement in securing your bitcoins.
Want to know more about hardware wallet and security, check the Satochip Academyđ.
Why you should choose Satochip hardware wallet?
Satochipâs core mission is to provide accessible and intuitive hardware and software solutions. Our goal is to empower every individual to store, manage and transact with cryptographic assets such as crypto-currencies, anytime, anywhere and independently.
Your Satochip hardware wallet is:
- Based on a smartcard equiped with an EAL6+ secure element;
- Easy to setup with your favorite software client such as Sparrow;
- Completely open source;
- Really affordable; check this out!đ;
- Supports various currencies, so you can use the same device to hodl all of your crypto assets.
Ordering and receiving
You can buy your new hardware wallet on Satochipâs official websiteđ. Always be extra careful and double check that youâre on « satochip.io » before making your purchase.
To store your Bitcoin safely, you will need:
- a Satochip hardware wallet;
- a smartcard reader (or a NFC reader).
Setting up your Bitcoin wallet with your Satochip smartcard
First, you need to have Sparrow Wallet installed on your computer. For this tutorial, we will guess that this is the case. If not, please follow this guideđ.
Once Sparrow is installed, youâll need to insert your Satochip đ card into your card reader, then launch the Sparrow application.
This brings us to the creation of your new bitcoin wallet.
Please note: as with any Bitcoin wallet creation, the process that follows will require you to save your recovery phrase (also known as seedphrase đor mnemonic), so that you can recover access to your funds in the event of loss or theft of your hardware wallet. We suggest you to store your seedphrase using Seedkeeper; your seedphrases and password manager on a smartcard.
Connecting to a server
When you open Sparrow Wallet for the first time, youâll be asked to choose between connecting to Electrumâs public or private servers. You donât need to choose anything other than the public connection to quickly set up your wallet and carry out your first transactions.
If you run your own Bitcoin node and care about privacy and anonymity, youâll probably choose to connect to your own â private â server.
Select your hardware wallet
You made your choice!? Great, letâs move on and click on âCreate New Walletâ and choose a name for your wallet.
You will now see the Sparrow wallet Settings screen. You can leave all of the fields on the defaults and select âConnected Hardware Walletâ.
In the next step, your Satochip đcard will appear in the list of hardware wallets detected by Sparrow. At this stage of the procedure, be sure to leave your Satochip in the card reader and click on âImport Keystoreâ.
Initialize your Satochip with a PIN code
To secure access to your Satochip hardware wallet, you will be asked to choose a PIN code. Obviously, this code must remain strictly personal to you. Itâs also important to store it properly and securely. Sparrow Wallet will ask you to type it twice.
Once youâve entered your PIN code, click again on âImport Keystoreâ to go to the next step.
Generate or import a mnemonic seedphrase
Now we come to the most important step of the procedure. Creating or importing your recovery phrase, also known as seedphrase or mnemonic.
a) You already have a seedphrase? Import it into Sparrow Wallet by typing the 12 or 24 words. Be careful, however, not to import a seedphrase that has been poorly stored or stored in an unsecured environment (eg. unencrypted on your computerâŠ)
b) You donât have a seedphrase? Click on âGenerate Newâ and youâll see the words that make up your recovery phrase. Youâll need to write them down and memorize them, then click on âOKâ to finish setting up your Satochip hardware wallet.
Congratulations, you just finished to setup your Bitcoin wallet using both the convenience of Sparrow Wallet and the safety of Satochip. You now have total control over your private keys, securely stored inside the Satochip secure element.
Advanced security tips
For additional safety measure, we recommend that you :
- Do not leave your Satochip in the card reader when you are not on your computer;
- Add a password to the wallet youâve just created (as you will for future wallets, taking care to choose a different strong password for each of your wallets);
Why adding a password to Sparrow in addition to the PIN code youâve already choose for your Satochip? In fact, your Satochip hardware wallet will safely handle your private keys while the public information such as the transaction history, label addresses⊠will remain stored on your computer. Adding a password to the software wallet will ensure you a better privacy.
Please note that your funds remain secure in your Satochip hardware wallet even if you do not enter a password at this stage.
Receiving Bitcoin
Your first operation will probably be to retrieve some satoshis from your freshly generated Bitcoin wallet. To do this, simply click on the âReceiveâ tab and copy the receiving address to forward it to someone or use it on your preferred Bitcoin Exchange, DEX or P2P application.
You can attach a label to each of your addresses. For example, if you need to be paid by several different customers, donât hesitate to use a unique address for each of them, to separate the payment channels and prevent your customers from easily seeing your other sources of income.
Sending Bitcoin
Once youâve received your first bitcoins, you may also want to send some to other recipients, or to another of your wallets.
Nothing could be simpler with Sparrowâs âSendâ function, which lets you choose a large number of parameters to determine the priority of your transaction and help you choose the amount of fees youâre ready to pay.
To validate the transaction, you will need to plug your Satochip hardware wallet to your smart card reader and enter the PIN code to unlock it.
Sparrow is a Bitcoin wallet that is extremely easy to use and offers a number of advanced features, including UTXO management.
Congratulations! You now have a fully functional Bitcoin hardware wallet based on a Satochip smart card that allows you not only to send or receive bitcoins, but also to truly own your bitcoins. Your keys, your coins!
