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Lets say I already have a hardware wallet or existing Bitcoin wallet with seed phrase.

I want to now create a lightning wallet on a new device.

Rather than starting a whole new Bitcoin wallet via some lightning wallet app, is it possible to restore my existing Bitcoin wallet via seed phrase on the lighting wallet app?

Is this a bad idea?

2 Answers 2

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Your lightning wallet will use addresses from a different HD derivation path, so chances are if you input the same seed phrase, you won't see your bitcoin-wallet funds available in your lightning-wallet anyways.

Pro:

You only have to store one seed phrase, perhaps simplifying offline storage considerations.

Con:

Lightning wallets are hot wallets, so your private keys will be stored on an online device. Any security breach could compromise not only your lightning wallet, but also the rest of your funds.

Personally, I would not use the same seed phrase for both. I think it is MUCH smarter to compartmentalize the security of each wallet, especially considering the nature of lightning wallets.

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What chytrik said above, but would add that the security problem gets less serious if you use a long passphrase as a "25th word" for your main (cold) wallet. In that case, an attacker who retrieves the private key from your lightning node still has a significant barrier to overcome in order to access the funds in your cold storage.

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