The Honeypot: Your secret weapon against Bitcoin robbery????

Imagine you're sitting relaxed in your living room, perhaps with a hot coffee in your hand. Suddenly, the door is flung open. Two masked men storm in, overpower you, and tie you to a chair. Your heart is racing, your hands are shaking. What do they want? They know you own Bitcoin—and now they're demanding your password. One of them pulls out a heavy wrench and glares at you threateningly. "Tell us the password, or things will get really uncomfortable." ???? One 5 Dollar Wrench AttackYou are trapped in a nightmare. Your carefully secured Bitcoins, your entire digital wealth, now depend on a single password. You feel the panic as the wrench approaches. What do you do? Do you give in and lose everything? Or do you have a plan? One possible solution: the HoneypotA clever way to give the attackers something without actually losing everything.

What is a honeypot?

A Honeypot is a second, smaller Bitcoin wallet that you specifically prepare for emergencies. It looks like your real wallet, but contains only a fraction of your assets. The idea behind it is simple: If you find yourself in a situation where you are forced to hand over your Bitcoins, you can instead reveal access to this honeypot.

But let's continue the story: You remember your prepared plan. Your panic gives way to a clear strategy. With trembling fingers, you enter the password to your Honeypot wallet The attacker looks at the number and grins with satisfaction. He thinks he's stolen all of your Bitcoin—but in reality, you only sacrificed a small portion. Your main assets remain safe, and you've escaped danger.

How does the honeypot work in practice ????

A honeypot isn't just a clever trick, it's a very practical solution. But how do you set it up correctly?

Step 1: Divide your assets ????

Let's say you have €100,000 in Bitcoin. Instead of keeping it all in a single wallet, you divide it up. For example, you put €90,000 in a secure main wallet that's well-protected and that you would never reveal in everyday life. The remaining €10,000 goes into the honeypot wallet—the wallet you can release in an emergency.

Step 2: A credible location for the honeypot ????

It is important that the honeypot credible If you show attackers a wallet that's too small or too easily hidden, they might become suspicious. They'll have to believe they've stolen all your assets. Place the honeypot in a location that appears secure, but not too obvious. It should look like you've stored all your Bitcoins right there. This minimizes the risk that they'll continue searching for your true assets.

Step 3: Separating the honeypot from your main wallet ????

The most important aspect of a functioning honeypot is the separation between the wallet you would disclose in an emergency and your real main wallet. This separation must be so good that a potential attacker never suspects there's a larger wallet they can't see. Let's now look at the different ways you can achieve this separation and the advantages and disadvantages of each approach.

Variant 1: Same seeds, different passphrases ????????

One of the smartest methods to separate the honeypot and the main wallet is to use the same seed phrase (the original words you can use to restore your wallet) in both wallets, but with different passphrasesThis way, you have two separate wallets based on the same seeds but secured with different passphrases.

• Advantage: credibility
  Since both wallets use the same seed phrase, it looks perfectly realistic to the attacker. If you give them the honeypot's passphrase, they can view all the Bitcoin contained within, and there's no obvious indication that another wallet exists.
• Disadvantage: Be careful when storing
  The biggest disadvantage of this method is that you have to be extremely careful how you Passphrases They should never be stored together with the seeds, and you must ensure that the main wallet passphrase is not stored in an insecure location that an attacker could find.
• Additional challenge: Avoid conclusions
  Under no circumstances should the honeypot wallet be used to draw conclusions about the larger wallet. For example, in this case, wallet information that could be used to draw conclusions about the larger wallet should be avoided with the shared seed phrase. Bitcoin addresses, X-Pubs, or a wallet descriptor could expose the honeypot.

Option 2: Separate wallets with different seeds ????

Another option is to have two completely separate wallets based on different seeds. This allows you to have two completely independent wallets – one for the honeypot and one for your real Bitcoins.

• Advantage: Maximum security
  This method offers maximum security because both wallets are completely separated from each other. Even if an attacker discovers the honeypot, there's no way to use this wallet to trace your main wallet. The seeds, passphrases, and wallets are completely independent. This makes it possible to keep the real stash secret, where other valuables can also be stored. Wallet information about the main stack, as well as the main stack, is also available.
• Disadvantage: More effort
  The big disadvantage is the additional ExpenseYou'll need to manage two wallets and ensure you have secure locations for storing the seeds and passphrases for both wallets. Additionally, you may need more hardware, such as a second hardware wallet or a separate vault, which adds additional cost and complexity. (This can be done with just one Specter DIY)
• Complicated handling
  If you use two separate wallets, you need to be very careful about which wallet you use, when, and where. You should never accidentally use your primary wallet in a situation where you actually want to expose the honeypot. This separation requires a high level of organization.

Advantages and disadvantages summarized

variant	Advantage	Disadvantage
Same seeds, different passphrases	Very credible, easy implementation	Great care is required when storing
Separate wallets, different seeds	Maximum security, no conclusions	Increased effort, additional hardware

Option 3: Using a multi-signature wallet ????✍️✍️

How do you deal with your Multi Signature WalletHere, you have the option of using one of the seeds used for the multi-signature wallet twice, i.e., for the honeypot. You can then simply set up a suitable passphrase to create the honeypot. For this one seed, you should omit the wallet descriptor.

Multi signature is known: If you're known to have a multi-signature wallet, then your honeypot should obviously also be a multi-signature wallet. This is a more complex situation, as it requires multiple safe places.
Either six completely different seeds are used in a 2/3 multi-sig (3 large wallets, 3 honeypots). Or a single seed is used twice, in which case the wallet descriptor of the multi-signature wallet is omitted. Using multiple seeds twice is not permitted.

Companion Apps: Two credible accounts, well separated ????????

In addition to separating the wallets themselves, you should also make sure that you have Companion App (like for example Sparrow Wallet or Spectre Desktop) create two separate accounts that are independent of each other. This ensures that the attacker only sees the honeypot account and finds no evidence of your main wallet.

Here's how to set up two credible accounts:

1. Spectre Desktop: In Specter Desktop you can multiple users that all function independently of each other. To do this, go to the settings, select "Authentication," and enable the multi-user option. You can now set up one account for your honeypot and one for your main wallet. It's important that the two accounts are not linked, so an attacker only sees the honeypot.
2. Blue Wallet: Blue Wallet also offers a feature called “Plausible deceptionHere you can create a second profile that you can use in an emergency. The attacker will then only see the profile you show them, while your real profile remains secure.
3. Sparrow WalletNote: With the Sparrow Wallet, the main wallets can be stored in different folders. These should then not appear at the top of the Sparrow Wallet.

These companion apps ensure that the attacker never learns the full truth about your assets and only sees the honeypot. This way, your main wallet remains protected, even if the attacker gains physical access to your device.

The advantages of the honeypot: security in an uncertain situation ????️

The honeypot is your safeguard in a situation where physical violence comes into play. You give the attackers what they want—or rather, what they believe is everything. The advantage is that you protect a large portion of your assets without being directly at risk.

The psychological trick ????

A large part of the honeypot is psychological. If the attackers see that you're giving them a wallet with a significant amount of money, they'll likely stop searching. They'll feel like they've achieved their goal. This reduces the risk of them continuing to search for your main wallet and putting you in even greater danger.

Emotional Security: From Fear to Relief ????

The idea of someone threatening you is frightening. But with a honeypot, you have a strategy that gives you back control. You'll no longer be completely helpless; instead, you'll have a plan that can help you protect your Bitcoins in the worst-case scenario. This feeling of security can give you tremendous peace of mind in such an extreme situation.

Conclusion: The honeypot as protection against the greatest danger

In the world of cryptocurrencies, the biggest dangers are not always hacker attacks – but often also the physical threat from criminals. Honeypot is one of the most effective ways to protect yourself in such a situation. It offers you a way to give your attackers something while keeping the majority of your assets safe.

You can rest assured that, should the worst happen, you have a plan that works. Your digital assets will remain protected, and you'll gain the security you need in a dangerous situation. Stay smart, stay safe—and always remember that the best protection is often the one no one sees coming.