Help Required: If you are a baker, do you need your XTZ in a separate KT1 address delegated to yourself?


Dear community, I hope you can help me with a question I have regarding baking.

Assume you:

  • Are a baker, with a TZ1 address
  • Have [A] XTZs in your balance

Should you:

(1) Create a KT1 address. Transfer your XTZs to the new KT1 address (leaving behind a sufficient XTZs for deposit/bond). Delegate the XTZs to your TZ1 address.


(2) I can keep all my XTZs in my TZ1 address and bake normally. I don’t need to create a KT1 address and delegate XTZs from it.

Can you help? I have been getting different answers from different people. Thanks in advance.


Hey. Did you get an answer on this or discover the answer?


you can leave all your XTZ in the baking account (tz1), but since the (encrypted) secret key of the baking account has to be online, it is not the best move in terms of security.
It is better to keep just the deposit funds in the baking account and the rest of the XTZ in a delegate account (KT1) that is managed by a third account whose secret key is stored offline.
It sounds more complicated than it is, more info here


Thanks! Much appreciated.