FAQ

Yes, Sparrow Wallet is fully open-source (released under the Apache 2.0 license) and its entire source code is publicly auditable on GitHub. Unlike many corporate wallets, Sparrow has no centralized servers, does not collect any user telemetry, and doesn’t require registration. Your private keys are encrypted locally on your machine using a password you choose, meaning you retain absolute, sole control over your funds at all times.

A red status indicator means Sparrow cannot establish a stable connection to your selected node or server. To resolve this:

1. If using Bitcoin Core: Ensure your node is fully synced, running, and that the rpcuser/rpcpassword or cookie file paths in Sparrow match your node’s bitcoin.conf configuration.
2. If using a Private Electrum Server: Verify that the server address, port, and connection type (SSL/TCP) are configured correctly.
3. If using Tor: Ensure the Tor daemon is active on your system or that Sparrow’s internal Tor proxy is enabled. Tor connections can occasionally time out; toggling the proxy switch off and on often restores the connection.

• Public Servers: The quickest setup, utilizing shared public Electrum servers. While convenient for testing, it exposes your addresses and transactional metadata to the server operator, compromising your privacy.
• Bitcoin Core: Connecting directly to your own full node provides the highest level of financial sovereignty and trustless validation. However, it requires significant local storage and can exhibit slower initial wallet rescans.
• Electrum (Private): Connecting to your own Electrum server (like Electrs or Fulcrum) indexed on top of Bitcoin Core. This delivers the perfect balance: absolute privacy with lightning-fast wallet loading and historical address scanning.

If your balance is incorrectly displaying zero after a successful seed import, the issue is typically caused by one of two factors:

1. Mismatched Script Type / Derivation Path: Ensure you selected the correct wallet type during import. For example, if your funds are on a Native SegWit address (starting with bc1q), the derivation path must be set to m/84'/0'/0'.
2. Missing Node Index: If you are connected to a personal Bitcoin Core node without an Electrum indexer, the node may not be aware of your historical transactions. You will need to trigger a manual wallet rescan from the server settings tab in Sparrow, specifying the block height or date from before the wallet’s creation.

A Partially Signed Bitcoin Transaction (PSBT) is a standardized format (defined in BIP 174) that allows different software and hardware setups to collaborate on signing a single transaction. In an air-gapped setup, Sparrow creates an unsigned or partially signed transaction, exports it as a .psbt file (via a MicroSD card or QR code), and hands it off to your hardware wallet (like Coldcard). The hardware device signs the transaction offline and exports it back to Sparrow, which then broadcasts it to the Bitcoin network.

If your transaction is stuck in the mempool due to low network fees, you can easily boost it using Sparrow’s built-in RBF feature:

1. Go to the Transactions tab and locate the pending transaction.
2. Right-click on the stuck transaction and select Bump Fee (RBF).
3. Sparrow will open a new transaction window. Use the fee slider to choose a higher, competitive sat/vB rate based on the current mempool state.
4. Sign the newly adjusted transaction (using your hardware wallet or local password) and broadcast it. The network will replace the old transaction with the new, higher-fee version.

When you broadcast transactions or query balances without Tor, your internet service provider (ISP) and the node operators can link your cryptocurrency addresses directly to your real-world IP address and geographical location. Enabling Tor wraps your connection in multiple layers of encryption and routes it through a global volunteer network, completely masking your true IP address and securing your transactional privacy.

A BIP39 passphrase is an optional, user-defined string of characters added on top of your standard 12 or 24-word seed phrase. It acts as an extension to your private key: if an attacker steals your physical seed sheet, they still cannot access your funds without the passphrase.

Crucial Warning: Passphrases are not stored anywhere on the device or software. If you lose or misspell your passphrase by even a single character, it will generate a completely different, empty wallet, and your original funds will be permanently unrecoverable. Use it only if you understand this risk and have a secure backup strategy.

Absolutely. Sparrow is built with native support for multi-wallet environments. You can create separate, isolated wallet files for different hardware devices (e.g., one for Coldcard, one for Ledger), or combine them to build a highly secure Multisig (Multiple Signatures) vault. To switch between them, simply open multiple tabs within the application interface or manage them via the File -> Open Wallet menu.

By default, Sparrow stores encrypted wallet files, connection configurations, and certificates in a dedicated home directory on your operating system:

• Windows: C:\Users\Username\AppData\Roaming\Sparrow
• macOS: /Users/Username/Library/Application Support/Sparrow
• Linux: ~/.sparrow

You can manually back up this folder to secure your connection layouts and application preferences, but remember that the actual wallet files inside are strongly secured by the master passwords you specified during their creation.