Safely Recovering Multi-Account Wallets

Hey everyone. I just set up an offline wallet and I’m planning to track UTXOs and create addresses. I’ll be working with 2 accounts: Account 1 for KYC bitcoins and Account 2 for non-KYC. But I’m curious about something.

What's up? What’s on your mind? Let’s hear it.

So picture this... In 20 years, I pull out my seed phrase to recover my wallet. How do I know how many accounts I've created? What if I had a 3rd account and just forgot about it? I'm thinking of passing my seed phrase down to my kid too. How can they figure this out?

You gotta clue them in. Use a real-life example to explain it to them. You’re the one who needs to remember this stuff.

That’s true. But honestly, I don’t wanna mess with multiple wallets. Starting a new seed phrase means I’d have to do extra backups and I’m not about that life.

Totally get that. Backups can get outta hand. But, if you've got a passphrase already, you can just add another one for different wallets. Just make sure to write them down safely.

Yeah, but finding spots to stash everything is tough! I struggle with that for sure.

Why not jot down the number of accounts and derivation paths on the same paper with your seed phrase? Makes sense, right?

Fair point, but if someone gets to my seed phrase, I’d rather not give them extra info like that. And updating it later if I need to change accounts is a hassle. I will, eventually, but still.

It’s not all that tricky. Whoever finds your seed phrase could easily play around with different derivation paths. If you’re worried about it, consider a password since it’s what’ll keep you safe.

If I throw in a random derivation path, the only way to access it is knowing that path or brute-forcing it, huh?

Exactly! Logical paths make things easier. You can use tools that’ll scan those paths for you. Like, just import your seed to Electrum and click "Detect existing accounts" to check things out.

Cool, I'm on board with that. What about backing up arbitrary paths? Should I keep them with the seed or separate? What’s the best way to do it?

Just write them down, man. Totally unpredictable paths can act like a passphrase. If someone finds your seed, they’d have to crack tons of combos. Just don’t lose that derivation path.

Gotcha. But how are you handling KYC coins? I’ve been battling that issue for a while.

Honestly, I just avoid them altogether. I never do KYC. Always used P2P for my bitcoin. Most of my coins go straight to mixers or swaps for Monero.

Wow, didn't see that coming. My friends all jumped into BTC through exchanges. How do I swap for Monero if I want to keep it private?

Peer-to-peer exchanges like Bisq work great for swapping. Then hold the Monero for a bit, split it up across wallets, and swap it back to bitcoin when you’re ready.

Seems like a lot of effort for fees… Just to avoid KYC? Who am I really hiding from?

That’s what it boils down to. You might still be on their radar even if they don’t see your exact addresses.