Nostr Web Client

It's foolish not to back up your keys if you're using a hardware wallet. But what's the point of a hardware wallet at all if you still have to back up your keys on paper or metal? You might as well just use paper wallets for cold storage and sweep one into your hot wallet when you need to spend it.

Kasso 2y ago

I do know that there were some issues in the past with moving sats from paper wallets. People used a web interface with that proces and wanted to send a part of their ballance from one paper wallet to another wallet.

The result: the desired amount of sats were received on the other wallet, so far so good. But the interface created a new wallet with new seeds and the change output, or the rest of the ballance of the paper wallet ended up in that 3rd new wallet. People closed the interface assuming the rest was still in the paper wallet, but it was gone, because they didn't saved the new seed.

Another danger is losing track of which derivation path was used when generating that paper wallet.

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Discussion

Fiat Shenanigans 🤡🌎 2y ago

They swept wrong. You shouldn't attempt to move part of the balance on a paper wallet. You execute a Tx to move the entire balance to a new private key in your hot wallet. Then you spend what you need to and after you can send the remaining funds to a NEW paper wallet.

It's important with paper wallets to know what format the private key is in. I don't like mnemonic seed phrases because not all wallets support them, and they are just a derivation of the private key. What you want to have is the actual private key, base64 encoded. Any wallet app that won't let you import a base64 private key isn't worth using.

Kasso 2y ago

I agree, but as You know, anything that someone can do wrong with handling bitcoin storage, went already wrong by some people in the past and will go wrong later by other people.