Part 10/13:
Clarifying Wallets: Coldcard vs Sparrow
Cole distinguishes between Coldcard (hardware device) and Sparrow Wallet (software):
Coldcard is a hardware wallet, securely storing seed phrases offline.
Sparrow Wallet is an open-source desktop application that can interface with Coldcard or function as a hot wallet if it stores seed phrases.
When used with Coldcard, Sparrow acts as a view-only tool—showing balances and addresses without risking seed exposure. If Sparrow stores your seed phrase, it becomes a hot wallet, increasing risk.
He also highlights that Sparrow cannot compromise your funds if used solely as an interface for Coldcard, as the seed remains offline.
Managing UTXOs for Cost Efficiency
To prepare for transaction fees spikes, users should: