diff --git a/docs/WalletCreationGuide.md b/docs/WalletCreationGuide.md index 01d457163..dc888bae3 100644 --- a/docs/WalletCreationGuide.md +++ b/docs/WalletCreationGuide.md @@ -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** @@ -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.