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Update WalletCreationGuide.md
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Added examples for Single/Multisig wallets
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j0sh21 authored Jan 15, 2024
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Expand Up @@ -16,6 +16,17 @@ Specter wallets are designed to provide a user-friendly interface around Bitcoin
- They offer better security, as one compromised seed doesn't result in immediate loss of funds.
- However, they are more complex to set up and require multiple secure locations for seed backups.

#### Single-Sig Wallets Examples:

- A user with a **Ledger Nano S** hardware wallet creating a single-signature Specter wallet for added convenience in managing their Bitcoin holdings.
- Someone who wants a simple wallet setup opting for a single-signature wallet with their **Electrum** software wallet, as they trust their computer's security.

#### Multi-Sig Wallets Examples:

- A group of friends setting up a multi-signature Specter wallet for a shared investment fund, where multiple devices are required to authorize transactions, enhancing security.
- A cryptocurrency exchange using a multi-signature setup with several hardware wallets to protect customer funds against a single point of failure.


## Step-by-Step Guide for Single-Sig Wallets

1. **Setup and Installation**
Expand All @@ -34,13 +45,11 @@ Specter wallets are designed to provide a user-friendly interface around Bitcoin
- Follow the prompts to generate a new seed. This seed is crucial for accessing your funds and should be backed up securely.
- Configure wallet settings as per your preference.


5. **Backing Up the Wallet**
- After creating the wallet, make sure to back up the seed securely.
- Specter recommends storing seeds on steel for long-term durability against elements like fire and water.
- Storing seeds on steel plates is more crucial for Single-Signature (SingleSig) wallets because access to the seed alone grants full control over the funds. In Multi-Signature (MultiSig) wallets, the requirement for multiple keys to authorize transactions reduces the risk of a single seed compromise leading to complete loss of funds. However, it's still essential to securely store all seeds in a MultiSig wallet to ensure key availability in emergencies, especially for significant amounts of cryptocurrency.


6. **Testing the Wallet**
- It's advisable to test the wallet by sending a small amount of Bitcoin to it and then trying to access these funds using the wallet.

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