Freedom Smuggler on Nostr: The best practice for testing #Bitcoin seed phrase recovery has been updated. This ...

The best practice for testing #Bitcoin seed phrase recovery has been updated.

This has been going on for a while on Reddit. Sharing here to help your friends.

1. ⁠Send a small test amount of BTC to HW wallet (This is akin to your savings account) like 100 usd of btc
2. ⁠Setup a lightning hot wallet on your mobile phone for spending BTC (like phoenix or breez)
3. ⁠Send that balance from your HW wallet to lightning wallet which will also load it into a lightning channel so you have quick and low fee txs with your lightning wallet (this is like your checking account for spending and replacing )
4. ⁠Reset the HW wallet
5. ⁠Recover the HW wallet with the seed and you will see a 0 balance but also see the tx history indicating that its the same wallet

What this does is :

1. ⁠Trains you how to recover your wallet
2. ⁠Sets up a lightning hot wallet like you should do regardless
3. ⁠Removes any risk of losing Bitcoin from setting up the hardware wallet incorrectly
4. ⁠Proves to you your backup is correct and works