diff --git a/cmd/kaspawallet/daemon/server/log.go b/cmd/kaspawallet/daemon/server/log.go
index b58080a29..82a77a34a 100644
--- a/cmd/kaspawallet/daemon/server/log.go
+++ b/cmd/kaspawallet/daemon/server/log.go
@@ -1,6 +1,12 @@
 package server
 
 import (
+	"fmt"
+	"os"
+	"path/filepath"
+
+	"github.com/kaspanet/kaspad/util"
+
 	"github.com/kaspanet/kaspad/infrastructure/logger"
 	"github.com/kaspanet/kaspad/util/panics"
 )
@@ -9,4 +15,33 @@ var (
 	backendLog = logger.NewBackend()
 	log        = backendLog.Logger("KSWD")
 	spawn      = panics.GoroutineWrapperFunc(log)
+
+	defaultAppDir     = util.AppDir("kaspawallet", false)
+	defaultLogFile    = filepath.Join(defaultAppDir, "daemon.log")
+	defaultErrLogFile = filepath.Join(defaultAppDir, "daemon_err.log")
 )
+
+func initLog(logFile, errLogFile string) {
+	log.SetLevel(logger.LevelDebug)
+	err := backendLog.AddLogFile(logFile, logger.LevelTrace)
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "Error adding log file %s as log rotator for level %s: %s", logFile, logger.LevelTrace, err)
+		os.Exit(1)
+	}
+	err = backendLog.AddLogFile(errLogFile, logger.LevelWarn)
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "Error adding log file %s as log rotator for level %s: %s", errLogFile, logger.LevelWarn, err)
+		os.Exit(1)
+	}
+	err = backendLog.AddLogWriter(os.Stdout, logger.LevelInfo)
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "Error adding stdout to the loggerfor level %s: %s", logger.LevelWarn, err)
+		os.Exit(1)
+	}
+	err = backendLog.Run()
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "Error starting the logger: %s ", err)
+		os.Exit(1)
+	}
+
+}
diff --git a/cmd/kaspawallet/daemon/server/server.go b/cmd/kaspawallet/daemon/server/server.go
index bf5090161..c2cf8cbe2 100644
--- a/cmd/kaspawallet/daemon/server/server.go
+++ b/cmd/kaspawallet/daemon/server/server.go
@@ -2,6 +2,11 @@ package server
 
 import (
 	"fmt"
+	"net"
+	"os"
+	"sync"
+	"time"
+
 	"github.com/kaspanet/kaspad/cmd/kaspawallet/daemon/pb"
 	"github.com/kaspanet/kaspad/cmd/kaspawallet/keys"
 	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
@@ -10,10 +15,6 @@ import (
 	"github.com/kaspanet/kaspad/infrastructure/os/signal"
 	"github.com/kaspanet/kaspad/util/panics"
 	"github.com/pkg/errors"
-	"net"
-	"os"
-	"sync"
-	"time"
 
 	"google.golang.org/grpc"
 )
@@ -33,6 +34,8 @@ type server struct {
 
 // Start starts the kaspawalletd server
 func Start(params *dagconfig.Params, listen, rpcServer string, keysFilePath string) error {
+	initLog(defaultLogFile, defaultErrLogFile)
+
 	defer panics.HandlePanic(log, "MAIN", nil)
 	interrupt := signal.InterruptListener()
 
@@ -40,6 +43,7 @@ func Start(params *dagconfig.Params, listen, rpcServer string, keysFilePath stri
 	if err != nil {
 		return (errors.Wrapf(err, "Error listening to tcp at %s", listen))
 	}
+	log.Infof("Listening on %s", listen)
 
 	rpcClient, err := connectToRPC(params, rpcServer)
 	if err != nil {
diff --git a/cmd/kaspawallet/libkaspawallet/bip39.go b/cmd/kaspawallet/libkaspawallet/bip39.go
index f3cac5e14..53acda51b 100644
--- a/cmd/kaspawallet/libkaspawallet/bip39.go
+++ b/cmd/kaspawallet/libkaspawallet/bip39.go
@@ -16,23 +16,23 @@ func CreateMnemonic() (string, error) {
 	return bip39.NewMnemonic(entropy)
 }
 
+// Purpose and CoinType constants
+const (
+	SingleSignerPurpose = 44
+	// Note: this is not entirely compatible to BIP 45 since
+	// BIP 45 doesn't have a coin type in its derivation path.
+	MultiSigPurpose = 45
+	// TODO: Register the coin type in https://github.com/satoshilabs/slips/blob/master/slip-0044.md
+	CoinType = 111111
+)
+
 func defaultPath(isMultisig bool) string {
-	const (
-		singleSignerPurpose = 44
-
-		// Note: this is not entirely compatible to BIP 45 since
-		// BIP 45 doesn't have a coin type in its derivation path.
-		multiSigPurpose = 45
-	)
-
-	purpose := singleSignerPurpose
+	purpose := SingleSignerPurpose
 	if isMultisig {
-		purpose = multiSigPurpose
+		purpose = MultiSigPurpose
 	}
 
-	// TODO: Register the coin type in https://github.com/satoshilabs/slips/blob/master/slip-0044.md
-	const coinType = 111111
-	return fmt.Sprintf("m/%d'/%d'/0'", purpose, coinType)
+	return fmt.Sprintf("m/%d'/%d'/0'", purpose, CoinType)
 }
 
 // MasterPublicKeyFromMnemonic returns the master public key with the correct derivation for the given mnemonic.
diff --git a/cmd/kaspawallet/libkaspawallet/keypair.go b/cmd/kaspawallet/libkaspawallet/keypair.go
index bf4b69f51..41c99de36 100644
--- a/cmd/kaspawallet/libkaspawallet/keypair.go
+++ b/cmd/kaspawallet/libkaspawallet/keypair.go
@@ -1,14 +1,15 @@
 package libkaspawallet
 
 import (
+	"math"
+	"sort"
+	"strings"
+
 	"github.com/kaspanet/go-secp256k1"
 	"github.com/kaspanet/kaspad/cmd/kaspawallet/libkaspawallet/bip32"
 	"github.com/kaspanet/kaspad/domain/dagconfig"
 	"github.com/kaspanet/kaspad/util"
 	"github.com/pkg/errors"
-	"math"
-	"sort"
-	"strings"
 )
 
 // CreateKeyPair generates a private-public key pair
diff --git a/cmd/kaspawallet/utils/readline.go b/cmd/kaspawallet/utils/readline.go
index 90342edce..7b83cb0b8 100644
--- a/cmd/kaspawallet/utils/readline.go
+++ b/cmd/kaspawallet/utils/readline.go
@@ -3,13 +3,15 @@ package utils
 import (
 	"bufio"
 	"strings"
+
+	"github.com/pkg/errors"
 )
 
 // ReadLine reads one line from the given reader with trimmed white space.
 func ReadLine(reader *bufio.Reader) (string, error) {
 	line, err := reader.ReadBytes('\n')
 	if err != nil {
-		return "", err
+		return "", errors.WithStack(err)
 	}
 
 	return strings.TrimSpace(string(line)), nil