Wasabi Docs: complete guide to wallet setup, CoinJoin, UTXO and BTC privacy
This page is a full-content edition based on the approved template. It covers wallet creation, recovery words and backup, wallet recovery, Coins / UTXO management as the privacy core of a bitcoin wallet, Connections and CoinJoin. The goal is not only to show where to click, but also to help users understand Wasabi’s privacy logic, network logic and usage boundaries.
1. Overview and preparation
Wasabi is a BTC wallet focused on privacy. Its core value is not just sending and receiving BTC, but also helping users manage UTXOs more carefully, hide network-side information through Tor, and improve on-chain privacy with CoinJoin.
- Recovery words and passphrase define the wallet itself. If you lose any critical part, you may not be able to recover your funds.
- Privacy in Wasabi is not a single button. It is the combined result of coin management, Tor and CoinJoin.
- CoinJoin can improve privacy, but it does not mean “absolute anonymity in every scenario”.
2. Download and install
It is recommended to download Wasabi from the official source. After installation, be patient during the first startup while the program initializes. On the first wallet recovery or after a long period without synchronization, the program may also download and process bitcoin history. This is normal.
- Use official releases whenever possible.
- Operate on your own regular device, not on a temporary machine.
- Prepare offline pen and paper before creating a wallet so you can record recovery words and passphrase.
3. Create a wallet
To create a new wallet, start from the Add Wallet entry and choose Create a new wallet. The wallet name is only for local identification. It does not change any on-chain address or balance.
- You can distinguish wallets by purpose, device or date, such as “Cold Wallet” or “2026 Main Wallet”.
- Avoid overly sensitive descriptions, especially in environments where other people may see the screen.
4. Back up recovery words and passphrase
Recovery words are the core of wallet recovery. Wasabi shows 12 words that must be recorded in the correct order. One wrong word or wrong order can restore the wrong wallet. Wasabi will then ask you to confirm the words so you prove they were written down correctly.
- Passphrase here is not a simple local unlock password. It directly participates in wallet generation and recovery.
- Recovery words + passphrase = the final wallet.
- If the same recovery words are used with a different passphrase, the restored wallet is completely different.
- If passphrase was enabled and later forgotten, the original wallet cannot be recovered.
5. Recover a wallet
To recover an existing wallet, use Recover a wallet instead of creating a new one. In most cases, regular users should choose a standard BIP39 single mnemonic phrase recovery method. Enter the words exactly and provide the correct passphrase if one was used.
- The bitcoin history scan is not finished yet.
- The passphrase is wrong, so a different wallet was restored.
- One or more recovery words were entered in the wrong order or with the wrong spelling.
6. Receive and send
When receiving funds, it is best to add labels for the source so it is easier to recognize where each UTXO comes from later on. When sending, do not focus only on the total balance. Pay attention to which UTXOs are actually being spent.
- Use a fresh address whenever possible for each incoming payment.
- Label different sources such as exchanges, friends, salaries or business payments.
- Labels are an important privacy tool, not decoration.
7. Miner fees and change outputs
Bitcoin transactions consume network fees. Wasabi estimates a suitable fee based on its chosen fee-rate source. Fees that are too low may delay confirmation; fees that are too high increase cost. Change outputs also matter for privacy because they may reveal which inputs probably belong to the same user.
- Use a higher fee when you need quick confirmation, and a lower fee when you can wait.
- Change itself is not an error, but it is one of the clues used in on-chain analysis.
- In privacy-sensitive cases, review the Coins page before sending so you understand exactly which UTXOs are being spent.
8. Privacy basics and the UTXO mindset
The core idea of Wasabi is not “account balance” but UTXOs. Every time you receive BTC, you create a separate coin. Your total balance is only the sum of these different UTXOs.
- One coin came from an exchange with KYC and another came from CoinJoin. If you spend them together, the CoinJoin outputs may become linked back to your real identity again.
9. Coins / UTXO management (privacy core of the wallet)
On the Coins page, every row is one independent UTXO. You can review amount, labels, privacy status and whether the coin is selected for spending. Manual coin selection is one of Wasabi’s most important capabilities because it lets you decide exactly which coins are used in a transaction.
- Clear labels help you decide which UTXOs can be used together and which should stay separate.
- The more accurately you understand the source of each coin, the easier it is to maintain privacy later.
10. Connections settings
Connections controls the indexer, exchange-rate provider, fee-rate provider, external transaction broadcaster and Tor. For privacy-oriented usage, Tor should usually stay enabled.
- Do not change the Indexer URI casually.
- Keep the fee-rate provider on the default option unless you know why you are changing it.
- The transaction broadcaster can usually remain on the default setting.
- If privacy matters to you, keep Tor set to Enabled.
11. Preparation before CoinJoin
Before starting CoinJoin, the wallet should already contain BTC, the network connection should work, the indexer should be connected, Tor should be running, and the user should understand that post-CoinJoin coins should not later be merged with clearly identified KYC-origin funds.
- The wallet contains enough BTC to participate.
- The status panel shows Tor running and the indexer connected.
- Coins on the Coins page have clear labels and understandable origins.
12. CoinJoin parameter explanations
CoinJoin combines transaction inputs and outputs from many users to make analysis harder. CoinJoin settings are not “the more aggressive, the better”. You need a balance between privacy, waiting time and cost.
- Keep the coordinator on the default setting.
- Do not change parameters you do not understand yet.
- First understand the Coins page, then understand CoinJoin, then adjust parameters if needed.
13. CoinJoin execution and post-check
When CoinJoin starts, original UTXOs are gradually split and recombined across multiple rounds, producing new outputs. After completion, the Coins page will show visible differences and the anonymity profile of those coins will improve.
- The status and labels of the new coins on the Coins page.
- Whether the anonymity target you set has been reached.
- Whether you are avoiding later spending that merges CoinJoin outputs with clearly identified KYC-origin coins.
14. Wallet Stats / Wallet Info / status panel
Wallet Stats helps you quickly review the global wallet state, including UTXO count, confirmed balance, total transactions, CoinJoin transaction count and address count. Wallet Info is more useful for advanced users because it contains derivation path, wallet fingerprint and descriptor-related information.
- Do not casually share xprv, zprv, descriptors or any other advanced wallet secrets.
- The lower-right status panel is useful because it shows fee priority, chain tip, Tor status, indexer status and peers at a glance.
15. Advanced features and risk notes
As you keep using Wasabi, you may run into more advanced concepts such as descriptors, derivation paths, hardware wallet integration and different address types like SegWit and Taproot. You do not have to learn everything at once, but you should know that these advanced details exist and that many of them are sensitive.
- Recovery words and passphrase must be stored offline.
- Do not send real recovery words, passphrase, xprv or full descriptors through chat tools.
- CoinJoin is not suitable for every withdrawal destination.
- Privacy is a process, not a switch.
FAQ
Why can’t I see my balance after recovery?
The most common reasons are that the bitcoin history has not finished processing yet, or the passphrase / recovery words were entered incorrectly so a different wallet was restored.
Why is the Coins page more important than total balance?
Because privacy management is about handling different UTXOs from different sources, not just looking at one total number.
Does Tor have to stay enabled?
If you care about privacy, it is recommended to keep Tor set to Enabled. Disabling Tor lowers network-level privacy.
Can I withdraw CoinJoin outputs?
Yes, but some exchanges or KYT systems may still flag this type of flow. Additional review is possible.
Why does the same recovery phrase not restore the original wallet?
Because a passphrase may have been used during creation. The same recovery words with a different passphrase produce a different wallet.