{"id":21826,"date":"2023-02-27T09:32:30","date_gmt":"2023-02-27T17:32:30","guid":{"rendered":"https:\/\/coinnetworknews.com\/introduction-to-the-best-multisig-wallets\/"},"modified":"2023-02-27T09:32:30","modified_gmt":"2023-02-27T17:32:30","slug":"introduction-to-the-best-multisig-wallets","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/introduction-to-the-best-multisig-wallets\/","title":{"rendered":"Introduction to the Best Multisig Wallets"},"content":{"rendered":"

Bitcoin multisig wallets are a great security solution to help you keep your Bitcoin secure, private and as accessible as your require at all times<\/p>\n

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What are the best multisig wallets to store bitcoin<\/h2>\n

Your Bitcoin wallet is the access to your digital funds and should be kept secure and private at all times. Online threats like malware programs, hacks and phishing attacks<\/a> are always lurking behind the screen, and so is the risk of losing your own private keys, which could lead to losing your funds<\/a> with no way to recover them. <\/p>\n

If this sounds too brutal, you should realize that the highlighted risks are real and people have lost money due to dramatic accidents. Such accidents may include leaving bitcoin in centralized exchanges that have gone bankrupt <\/a>\u2014 like the recent FTX \u2014 or vanished to potential rug pulls, like the Canadian exchange Quadriga<\/a>.<\/p>\n

Bitcoin multisig wallets come to the rescue and represent a great security aid in a self-custody practice. Multisig wallets have existed in Bitcoin since 2012. More recently, they have acquired a stronger position in securing the digital asset with cutting-edge technology suitable for less tech-savvy bitcoiners.<\/p>\n

In recent years we\u2019ve seen DIY wallets emerging for extra security. With DIY devices, you can buy your own components and build your own device that leaves no trace and securely generates private keys. Such an approach also benefits users from countries where conventional hardware wallets are not allowed to be sold or have poor delivery services and are optimal for low-cost solutions. <\/p>\n

For the purpose of this article, we have structured the content into two distinct sections: <\/p>\n

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  1. Collaborative custody wallets: whereby you use a third party to manage one of your private keys.<\/li>\n
  2. Self-custody wallets: whereby you alone manage the distribution of the private keys. <\/li>\n<\/ol>\n

    Best Collaborative Multisig Wallets<\/h2>\n

    In a collaborative multisig wallet, which is likely to offer 2-out-of-3 key management, you will likely have control over one private key. At the same time, the third party \u2014 an exchange or a custodial company \u2014 holds the second private key online and the third key offline in cold storage. <\/p>\n

    The advantage of such a solution is convenience and reliance on customer service to assist with managing the private keys if anything happens. This occurs at the expense of privacy because companies may require KYC procedures to allow customers to use their services. Another disadvantage of collaborative multisig wallets is their geographical limitation, as they may not be available everywhere globally.<\/p>\n

    Casa<\/h3>\n
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