Once you've set up your node and Electrum server using the guide that best fits your needs, we can now connect Sparrow wallet to the Electrum server. This will allow the wallet to quickly retrieve your transaction history, as all the blockchain data downloaded with your node has already been fully indexed.
In our basics section, we covered the fundamentals of passphrases. Now, let's dive into how to create a secure and reliable passphrase for your Bitcoin seed.
The Bitcoin journey starts from here, those 24 words. While most people use them, few truly understand them. Taking control of your Bitcoin means generating your own seed securely, without relying on third parties.
An Electrum server, in this case Electrs, is a service that helps index the Bitcoin blockchain to make it easier and faster for lightweight wallets (like Sparrow wallet) to interact with the blockchain without needing to store the entire blockchain locally. The key function of indexation is what makes an Electrum server so useful, and here's why it's important:
Holding Bitcoin means having full control over your private keys. As Andreas Antonopoulos famously said, “Not your keys, not your Bitcoin.”
There are several popular tools to help you set up a Bitcoin node, each with its own features and ease of use.
Now it's time to generate your own passphrase using real dice. As we mentioned in the Seed Phrase Guide, using casino-grade dice ensures the highest level of randomness (entropy). However, if you want to save money, any standard six-sided dice will work just fine. Even if your dice have slight imperfections, rolling multiple dice at a time will still provide sufficient randomness for a secure passphrase.
When running a Bitcoin node, there are two types of Tor connections to consider:
Before we dive into the technical details, let’s start with the basics.
Self-custody means being the sole owner and controller of your Bitcoin, without relying on third parties like exchanges or banks. It involves holding your own private keys, which are required to access and spend your Bitcoin. This ensures full financial sovereignty—no one can freeze, confiscate, or restrict your funds.
"Below, you'll see why running your own Bitcoin node is essential for self-custody."
You can find the word lists below this link.