bitcoin core – What is the difference between signrawtransactionwithwallet vs signrawtransactionwithkey in signing unsigned raw transaction?

signrawtransactionwithwallet is used to sign transactions for your wallet in which you can avoid entering private keys for spending different UTXOs as the private keys are in your wallet. You may need to enter passphrase using walletpassphrase

signrawtransactionwithkey is used to sign transactions for spending any UTXO using private keys

Examples:

  1. I create a transaction for spending UTXO associated with address tb1qlqyjzjuxel0r80gs97uf5snh0a0kesmjyxxzey that belongs to my wallet
createrawtransaction "[{"txid":"a1a564ae1983e1a87e731c4b9b205f3e8edbd724bb03d4474090f32ccd8f55a0","vout":0}]" "[{"tb1qlu4kjktgcdru8cjnlx47me2ha4phxgceg2v4mj":0.01}]" 0 true

Sign the transaction using signrawtransactionwithwallet without entering any private key

signrawtransactionwithwallet 0200000001a0558fcd2cf3904047d403bb24d7db8e3e5f209b4b1c737ea8e18319ae64a5a10000000000fdffffff0140420f0000000000160014ff2b695968c347c3e253f9abede557ed4373231900000000

Or I could sign the same transaction using private key for tb1qlqyjzjuxel0r80gs97uf5snh0a0kesmjyxxzey

dumpprivkey tb1qlqyjzjuxel0r80gs97uf5snh0a0kesmjyxxzey
signrawtransactionwithkey "0200000001a0558fcd2cf3904047d403bb24d7db8e3e5f209b4b1c737ea8e18319ae64a5a10000000000fdffffff0140420f0000000000160014ff2b695968c347c3e253f9abede557ed4373231900000000" "["cT29Pb7V9kxCp6VRfwNNips8T9beVV6AkJDJ9PZcn1RSx3pCnfCd"]"
  1. I create a transaction in Bitcoin Core for spending UTXO that belongs to my wallet in Electrum and private key for it is in Electrum.

electrum-utxo

createrawtransaction "[{"txid":"542646583f5bd9b8424832d84ccfd23148f1e19b1b75cf3945bc8693d2dcb82e","vout":2}]" "[{"tb1qlu4kjktgcdru8cjnlx47me2ha4phxgceg2v4mj":0.022}]" 0 true

I copy its private key from Electrum.

private-key-electrum

Sign transaction in Bitcoin Core using signrawtransactionwithkey:

signrawtransactionwithkey "02000000012eb8dcd29386bc4539cf751b9be1f14831d2cf4cd8324842b8d95b3f584626540200000000fdffffff01c091210000000000160014ff2b695968c347c3e253f9abede557ed4373231900000000" "["cSBRq5UwGRZdKwLh6XGf3XFkYDvLdz6WwMxmtTdTvrNyw76mHHAV"]"