How to set up Sparrow Wallet with a hardware wallet
Sparrow is the desktop app I point people to once they own a hardware wallet and want to see exactly what their bitcoin is doing.
Download Sparrow from sparrowwallet.com and verify the file before you install it. Create a new wallet and import your hardware wallet's public keys by USB, or by QR or SD card for an air-gapped device. Then connect Sparrow to your own Bitcoin node or Electrum server instead of a public server. Your private keys never leave the hardware wallet.
Disclosure: I work at Blockstream, the company that makes the Jade wallets mentioned here. I joined after many years as a satisfied user. There are no affiliate links on this site.
What Sparrow is
Sparrow is a free, open-source desktop wallet for Bitcoin only, released under the Apache 2 license. It runs on macOS, Windows, and Linux. It has no mobile version, and its feature list has no Lightning.
Paired with a hardware wallet, Sparrow is a watch-only window plus a transaction builder. It holds your public keys, shows your balance and addresses, and prepares transactions. The hardware wallet holds the private keys and signs. Sparrow supports USB devices including Trezor, Ledger, BitBox02, Blockstream Jade, KeepKey, and OneKey, and QR devices including Jade, SeedSigner, Passport, Keystone, Krux, and Specter DIY.
Step 1: download and verify Sparrow
Fake wallet downloads are a common way to steal bitcoin. Take five minutes to confirm the file you got is the one Sparrow's developer, Craig Raw, signed. For the current verification commands, follow the instructions on Sparrow's download page.
- 1Download the installer for your system, plus the manifest file and the manifest signature for the same version.
- 2Import Craig Raw's signing key and verify the manifest signature. You want a good signature from him.
- 3Compute the SHA-256 hash of the installer and check it matches the line for that file in the manifest. The signature proves the manifest is genuine, and the hash proves your installer matches it.
- 4Install Sparrow. For future updates, use its built-in tool for verifying a download.
Step 2: choose how Sparrow connects to Bitcoin
Sparrow needs a server to look up your transactions, and your choice decides who can see your balance.
| Server type | Privacy | Who it suits |
|---|---|---|
| Public Server | The server operator sees your addresses and your IP address. Sparrow itself warns that "a public server means it can see your transactions." | Testing with small amounts |
| Bitcoin Core | Private. Sparrow talks to your own node over RPC. Core stores your public keys and balance unencrypted on that machine. | Anyone already running Bitcoin Core |
| Private Electrum | Private. Connects to your own Electrum server (electrs, Fulcrum, ElectrumX), optionally over Tor. | Node boxes like Start9 and Umbrel |
For Bitcoin Core, let the node finish syncing, then follow Sparrow's guide to connecting a node for the current settings.
Bitcoin Core and electrs each work as a Sparrow backend. If you do not run a node yet, see how to run a Bitcoin node and my node hardware rankings.
Step 3: connect your hardware wallet
Set up the hardware wallet with its own seed phrase and PIN first, then follow the path that matches your device. For the current menus, follow Sparrow's documentation.
- 1In Sparrow, create a new wallet and give it a name.
- 2Keep the defaults, a single-signature wallet with a native segwit (P2WPKH) script type, unless you are restoring an older wallet that used a different type.
- 3For a USB device: plug it in, enter its PIN, close the vendor's own app, and scan for it from Sparrow. On Linux, Sparrow needs its udev rules installed first.
- 4For a QR device such as Jade: have the device show its extended public key as an animated QR code, then choose the air-gapped option in Sparrow and hold Jade up to your webcam.
- 5Finish the import, then set a password for the wallet file. Sparrow hashes it with Argon2, so pick a strong password.
Step 4: receive and send
To receive, open the Receive tab and display the address on your hardware wallet. Confirm the address on the hardware wallet's screen matches Sparrow before you share it. Malware can swap an address on your computer screen, but it cannot change what your hardware wallet displays.
To send, open the Send tab, enter the address and amount, pick a fee rate, and create the transaction. Then:
- 1Finalize the transaction for signing.
- 2Sign on the hardware wallet. With USB, approve on the device. With QR, show the transaction to the device, approve, then scan the signed transaction back into Sparrow.
- 3Check the address and amount on the hardware wallet's own screen, the one you can trust, before you approve.
- 4Broadcast the transaction.
Sparrow's UTXOs tab lets you choose exactly which coins a transaction spends. My UTXO guide explains why that matters for fees and privacy.
Is Sparrow safe, and how it compares to Electrum
With a hardware wallet, Sparrow never holds your private keys, so a compromised computer can at worst show you wrong information or try to trick you into signing a bad transaction. The device screen check above defeats that. The code is public, every release is signed, and you can verify the download yourself. The biggest privacy risk is the server you choose, covered in Step 2.
| Sparrow | Electrum | |
|---|---|---|
| Platforms | macOS, Windows, Linux | macOS, Windows, Linux, Android |
| License | Apache 2 | MIT |
| Lightning | No | Yes |
| Seed phrase it creates | BIP39 | Electrum's own format (it does not generate BIP39 seeds) |
| Connects to | Bitcoin Core directly, or an Electrum server | Electrum servers |
| Multisig | Yes | Yes |
I recommend Sparrow for hardware wallet users. It speaks to Bitcoin Core directly, creates standard BIP39 seeds, and shows every input and output before you sign. Electrum makes sense if you want Lightning in the same app or need Android.
Frequently asked questions
How do I set up Sparrow Wallet?
Download it from sparrowwallet.com and verify the signature and hash. Create a new wallet, import your hardware wallet by USB or QR, set a wallet password, and connect to your own node or Electrum server.
Is Sparrow Wallet safe?
Yes, when used with a hardware wallet and a verified download. Sparrow is open source, signs every release, and never holds the private keys of a hardware wallet. Check every address and amount on the device screen.
Sparrow Wallet vs Electrum: which is better?
For hardware wallet users, Sparrow. It connects directly to Bitcoin Core, uses standard BIP39 seeds, and shows a diagram of every input and output before you sign. Electrum adds Lightning and an Android app.
Does Sparrow Wallet have a mobile app?
No, Sparrow is desktop only: macOS, Windows, and Linux. There is also a headless Sparrow Server build for Linux.
Can I use Sparrow without running my own node?
Yes, it can use a public server, but that server sees your addresses and balance. It is fine for learning with small amounts. Move to your own node or Electrum server before you hold real savings.