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Multisig SetupStep 2 of 4

Hardware Setup for Multisig

Before creating your multisig wallet, you need to set up each hardware wallet (signing device) individually. This page guides you through preparing your devices.

For a 2-of-3 multisig, using different manufacturers eliminates single-vendor risk:

Option A: Maximum Security (Air-Gapped)​

DeviceRoleCommunication
Jade PlusKey 1QR codes (air-gapped)
Keystone 3 ProKey 2QR codes (air-gapped)
Trezor Safe 5/7Key 3USB

Option B: Balanced (User-Friendly)​

DeviceRoleCommunication
Trezor Safe 5Key 1USB
BitBox02 NovaKey 2USB
Blockstream JadeKey 3USB or QR

Option C: Budget-Conscious​

DeviceRoleCommunication
Blockstream JadeKey 1USB or QR
Trezor Safe 3Key 2USB
SeedSigner (DIY)Key 3QR codes (stateless)
Cost Consideration

A complete 3-device setup costs $200–500 depending on models chosen. This is a one-time investment to protect potentially much larger holdings.

If you already own a Coldcard, it can still serve as a quorum member, after you check whether its seed needs migration and regenerate with dice on fixed firmware. We just don't recommend buying one new right now.

General Setup Principles​

1. Give Each Device Its Own Independent Seed​

Each device gets a fresh seed that has never existed anywhere else. Never:

  • Reuse a seed from a software wallet or another device
  • Share seeds between devices
  • Let one backup location hold more than one seed

Each device = Unique seed = Independent key

Generate each seed on its device using the dice-roll option where available, or import a seed you generated yourself with dice. The 2026 Coldcard incident was caused by trusting on-device RNG blindly. In a multisig, independent entropy per key is exactly what keeps one vendor's silent failure from mattering.

2. Verify Device Authenticity​

Before setup:

  • Purchase directly from manufacturers or authorized resellers
  • Check tamper-evident packaging
  • Verify firmware signatures where possible

3. Update Firmware First​

Before generating seeds:

  • Connect to manufacturer's official software
  • Update to latest firmware
  • Skim the vendor's security advisories page while you're there

Seeds generated on flawed firmware stay weak forever, and updating later doesn't repair them, so patch before you generate, not after.

4. Create Strong PINs​

Each device needs a PIN:

  • Use 6-8 digits minimum
  • Don't use obvious patterns (123456, 000000)
  • Don't reuse PINs across devices
  • Consider writing PINs down separately from seeds (stored in different locations)

Device-Specific Setup​

Coldcard Setup​

Coldcard is Bitcoin-only and supports excellent air-gapped operation. (These steps remain here for existing owners; for new purchases, see why Coldcard currently isn't recommended. Make sure the firmware is fixed (Mk4/Mk5: 5.6.0+, Q: 1.5.0Q+) before generating anything.)

Initial Setup:

  1. Power on with battery pack or USB power adapter (not computer)
  2. Accept terms and create a PIN
    • Prefix PIN (shown before words)
    • Main PIN (required to access)
  3. Select "New Seed Words", and use the dice roll option (99 rolls) rather than plain device RNG
  4. Choose 24 words
  5. Write down all 24 words on paper/metal
  6. Verify by re-entering selected words
  7. Record the master fingerprint (8 characters, e.g., 7C8A9B2D)

Export Public Key for Multisig:

  1. Insert MicroSD card
  2. Go to: Advanced/Tools → Export Wallet → Generic JSON
  3. This creates a file with your xpub for the coordinator software

Label your Coldcard with a number (1, 2, or 3) using the included stickers.

Trezor Setup​

Trezor offers excellent software integration with Sparrow.

Initial Setup:

  1. Connect to computer via USB
  2. Open Trezor Suite or Sparrow Wallet
  3. Select "Create new wallet"
  4. Choose 12 or 24 words (24 recommended for multisig)
  5. Write down all words on paper/metal
  6. Verify by re-entering words
  7. Create a PIN (up to 50 digits)
  8. Note the master fingerprint (visible in Sparrow after connecting)

For Multisig:

  • Trezor works via USB connection with Sparrow
  • No export file needed; Sparrow reads directly from device

Keystone Setup​

Keystone uses QR codes for fully air-gapped operation.

Initial Setup:

  1. Power on and select language
  2. Create a password (device access)
  3. Select "Create New Wallet"
  4. Choose 24 words
  5. Write down all words on paper/metal
  6. Verify the seed phrase
  7. Note the master fingerprint from wallet info

Export for Multisig:

  1. Go to: Menu → Multisig Wallet → three dots → Show/Export XPUB
  2. Can export via QR code or to MicroSD

BitBox02 Setup​

BitBox02 offers simple setup with strong security.

Initial Setup:

  1. Connect via USB
  2. Open BitBox App
  3. Select "Create wallet"
  4. Device generates 24-word seed
  5. Write down all words on paper/metal
  6. Verify on device
  7. Set device password

For Multisig:

  • BitBox02 works directly with Sparrow via USB
  • Note the fingerprint shown in Sparrow

Ledger Setup​

Ledger devices work with most multisig coordinators.

Initial Setup:

  1. Connect via USB
  2. Set up PIN (4-8 digits)
  3. Select "Set up as new device"
  4. Write down the 24-word recovery phrase
  5. Confirm words on device
  6. Install Bitcoin app via Ledger Live

For Multisig:

  • Works with Sparrow via USB
  • Note: Ledger uses closed-source firmware

Recording Device Information​

For each device, create a record card:

Example record card showing device label, fingerprint, and firmware version for multisig tracking

Important: Store this record SEPARATELY from the seed phrases.

Seed Phrase Backup​

Why Metal Backups Matter​

Paper can be destroyed by:

  • Fire
  • Water/flooding
  • Ink fading over time
  • Accidental disposal

Metal seed backups survive these disasters.

ProductTypePrice Range
BlockplatePunch plates$80-100
CryptosteelLetter tiles$80-100
SeedplateStamp/punch$50-80
BillfodlLetter tiles$80-100

Backup Process​

  1. Set up hardware wallet and verify seed works
  2. Transfer seed to metal backup carefully
  3. Verify metal backup by reading it back
  4. Store metal backup in secure location (NOT with the device)

Seed Backup Locations for 2-of-3​

Diagram showing recommended separate storage locations for each seed phrase backup in a 2-of-3 multisig setup

Never store a seed phrase with its corresponding device!

Pre-Multisig Checklist​

Before proceeding to create your multisig wallet, verify:

  • All 3 devices are set up with unique seed phrases
  • All 3 seed phrases are backed up on metal
  • Each seed backup is in a different physical location
  • You've recorded the master fingerprint for each device
  • Each device has a unique PIN you can remember
  • Firmware is up to date on all devices
  • You've labeled each device (1, 2, 3) for easy identification
Double-Check Seeds

Before creating the multisig, verify each seed works:

  1. Reset one device to factory
  2. Restore from its seed backup
  3. Confirm the fingerprint matches
  4. Repeat for each device

This confirms your backups are correct BEFORE you deposit funds.

Next Steps​

With your hardware wallets prepared:

→ Continue to Sparrow Wallet Setup to create your 2-of-3 multisig wallet.