If you already know how to use Sparrow Wallet to connect to hardware wallets, the next step is to further enhance the security of your asset management by using a BTC Multisig Wallet.
This article introduces how to create a multisig wallet in Sparrow Wallet and how to complete receiving and signing transactions.
What is a BTC Multisig Wallet?
A multisig wallet is a type of wallet that requires multiple signatures to authorize and complete a transaction.
For example:
2-of-3: Transactions can be completed using any 2 out of the 3 signature devices.
3-of-5: Transactions can be completed using any 3 out of the 5 signature devices.
Compared to single-signature wallets, multisig wallets are better suited for high-value asset storage, team asset management, and long-term storage scenarios.
Preparation
Before starting, please ensure you have the following ready:
The latest version of Sparrow Wallet installed.
Multiple hardware wallets prepared for multisig, all of which have been backed up.
A clear multisig strategy, for example, 2-of-3.
Creating a Multisig Wallet
1. Open Sparrow and Create a New Wallet
Open Sparrow Wallet and create a new wallet file. It is recommended to give the wallet an easily identifiable name.
2. Set Multisig Wallet Type
Under wallet type, select Multisig.
Set your signature rules, for example: 2-of-3. This means: the total number of keys involved in signing, and the minimum number of signatures required to spend the funds.
3. Add Each Signer / Signature Device
Connect and add the required hardware wallets one by one to complete the import.
Carefully check all configuration information, including: multisig rules, the device for each signature slot, etc.
Click "Apply".
4. Save Wallet Configuration and Create Backups
Once created, please save the wallet immediately and back up the information required for restoration. It is recommended to back up the following:
Wallet configuration file
Descriptor or other recovery information
Receiving BTC
Once the multisig wallet is created, you can receive assets just like a regular BTC wallet.
Open Receive in Sparrow.
Generate a receiving address.
Perform a small test transaction to confirm it works correctly before transferring the main funds.
Initiating Transactions
1. Create a Transaction
Click "Send" on the left.
In the Pay to field, enter the destination/receiving address.
Fill in the Label, Amount, and Fee accordingly.
Click "Create Transaction".
2. Sign with a Sufficient Number of Devices
Based on your multisig rules, use the required number of signature devices to complete the signature. For example:
If it is 2-of-3, then any 2 signature devices can complete the signature.
If it is 3-of-5, at least 3 signatures are required.
3. Broadcast Transaction
Sparrow can only broadcast the transaction once it has obtained the sufficient number of valid signatures.
