Backup Hot Wallet - Clarity around Restoring Wallet

When exploring the export wallet feature I noticed that if you’re using a Bitcoin Core hot wallet and you restore the wallet from the .json or QR code the wallet’s UX will now be different and may cause issues for users that do not understand that this wallet is now a watch-only wallet.

For example, I setup and use a hot wallet which uses a password that I set to sign the transactions. My machine dies and I decide to restore the hot wallet but when I try to sign with the restored wallet it only offers “Sign with SD Card File” or “Sign with QR Codes”. Hopefully the user has the seed words and can create to hot wallet again through the devices section but it’ll possibly cause a lot of confusion and support requests as their restored wallet no longer functions as before. It would be good to clarify what and how the hot wallet backup works to avoid this for new users.

Review the export-wallet and wallet-restore flows described in the issue, focusing on the transition from a hot wallet to a watch-only wallet. Done means the UX or accompanying guidance clearly explains the restored wallet’s signing limitations and how users can recover a functioning hot wallet with their seed words.

Written by the indexing model from the issue text.