How to create a new wallet?

How To Create a New Wallet with Sparrow Wallet?

Creating a wallet with Sparrow Wallet is simple and hassle-free. In this step-by-step guide

Open Sparrow Wallet. Then click on File > New Wallet.

Give a new name for your new wallet. For this example, we will use blockdyor new wallet testing.

It’s now the time to choose what type of wallet you would like to create. Sparrow Wallet, as we said, has many different options: Connected Hardware Wallet (for example: Trezor Model T, Trezor One), Airgapped Hardware Wallet (for example: Coldcard), Watch Only Wallet (xpub) or a new or Imported Software Wallet. For this example, we will choose the latter.

In this section there are other possibilities, such as choosing to create (or enter) the mnemonic words, import the private key or keystore import. Since we want to create a new wallet from zero, we will choose to create a 12 mnemonic words wallet.

Now it’s time to randomly generate a new BIP39 passphrase, click on Generate New to create a new seedphrase. You can also choose individually each BIP39 words to create your seedphrase. You can also increase entropy by using dices.

After you have generate the seedphrase, choose Use passphrase if you want to add a passphrase (13th or 25th word) to your seedphrase and increase even more the entropy. Write down the words and click on Confirm Backup to finalize the wallet creation.

It’s now time to re-enter the seedphrase again, in order to confirm that it was written down correctly. Click on Re-enter Words.

Proceed to type each one of the words of the seedphrase (plus the passphrase, if you chose to use it). Then click on Create Keystore.

The keystore has been create, now proceed to import it by clicking on Import Keystore.

Click on Apply.

You can also add a password to your wallet. Keep in mind that this is different from the passphrase. After this, your wallet will be created.

The newly created wallet will have a mv.db extension, will be located in: C:\Users\Admin\AppData\Roaming\Sparrow\wallets on Windows.

How to fix

All my addresses have changed!

This is almost certainly due to an incorrect passphrase. Following the BIP39 specification, Sparrow stores nothing in your wallet file that is derived from your passphrase. This makes a passphrase enabled wallet more difficult to brute force. It also means that if you enter an incorrect passphrase, Sparrow will be using a different seed and will therefore derive different addresses. Your existing address labels will even be applied to the new addresses, since Sparrow has no way of telling the passphrase has changed. Further, your wallet will show no funds are present. They are not lost however.

To fix this, close the wallet and reopen it, entering the passphrase carefully. If you can’t remember your passphrase, take your time and try different options systematically.

I’ve restored my wallet but some of my funds are missing

If you have restored your wallet from seed, but are missing newer transactions, it is likely you need to increase the wallet gap limit. This is a setting which controls how far ahead a wallet looks in your sequential address list for new transactions. You can increase it in the Settings tab by clicking Advanced. Increase the gap limit value, Close and then Apply. The default is 20 for normal wallets, and 40 for Postmix wallets. If have had a lot of connection errors during mixing, the gap limit may be need to be increased substantially. Increasing it makes Sparrow look farther ahead in the address list, but don’t increase it too much as your wallet loading will take longer.

UTXOs are missing from my Postmix wallet

See the answer above.

What does a red Tor icon in the status bar mean?

This error (with the tooltip “External Tor proxy error: Connection refused”) occurs when you have configured an external proxy (or one was running previously), and Sparrow can no longer connect to it. Most likely, the proxy is simply not running. For a Tor proxy running on the standard port, check if it is working with

> curl –socks5-hostname localhost:9050

What does a red wallet icon mean?

If your wallet tab has a red icon, it means there was an error loading the wallet history from your configured server. This is due to either a problem with the connection to it, or (more likely) a problem with the server itself. If you are using a prebuilt node (like Umbrel) it is often a good idea to restart it. Also, consider uninstalling unnecessary apps on it, which can affect performance of the system as a whole. If the issue persists, consider upgrading to a more performant server such as Fulcrum.

Your system is missing a dependency for the webcam

If you see this error on a Windows machine, you are probably missing two Microsoft libraries the webcam driver depends on. These standard libraries can be added by installing the Microsoft Visual C++ 2010 Service Pack 1 Redistributable Package MFC Security Update. Here’s a guide that describes the installation process.
Some users have also reported success by downloading msvcr100.dll and msvcp100.dll from, and copying them into C:\Windows\System32.

I can’t connect to my Ledger

Make sure that:

  • Ledger Live is not running
  • The Bitcoin app is running on the device
  • If you are on Linux, ensuring that udev rules are installed. Install using the command in the Tools menu, or manually.

If that doesn’t help, try rebooting your computer to resolve any USB related issues.

I’m getting a “man-in-the-middle” certificate warning when connecting

This is an SSL error, mostly likely due to an expired certificate. If you are using a public server, it may simply be that the certificate has been replaced, in which case it is safe to proceed. Otherwise, it may make sense to be cautious, especially if you are connecting over a public wifi. To find the existing certificate, look in the certs folder of Sparrow home for a file with the same name as the URL of the server. You can delete that file to clear Sparrow’s record of the SSL cert. It will download the cert again on reconnection.