Overview of Bitcoin Multisig Wallets
• Bitcoin multisig wallets are secure options for storing digital assets as they protect users from online threats like malware, hacks and phishing attacks.
• Collaborative multisig wallets involve a third party to manage one of the private keys, while self-custody multisig wallets allow the user to distribute all private keys.
• In this article we will explore some of the best collaborative and self-custody multisig wallets for bitcoiners.
Collaborative Custody Wallets
Collaborative custody wallets are a great security aid in case you want to ensure that your funds are kept safe and secure. This type of wallet involves a third party managing one of your private keys, most likely offering 2-out-of-3 key management. You will have control over one key, while the other two will be held by an exchange or custodial company – one online and the other offline in cold storage.
This solution comes with convenience and reliance on customer service – but at the expense of privacy because companies may require KYC procedures to use their services. Also, these types of wallets may not be available everywhere globally due to geographical limitations.
If you’re looking for extra security measures against online threats, DIY self-custody wallets are becoming increasingly popular among bitcoiners. With this approach, you can buy components separately and build your own device that leaves no trace behind it – securely generating private keys with low cost solutions suitable even for non tech savvy users from countries where conventional hardware wallets aren’t allowed or have poor delivery services.
Best Collaborative Multisig Wallets
Some of the best collaborative multisig wallets include:
• Casa – Offering free basic wallet with no KYC policy required;
• Coinbase Wallet – Supporting different blockchain networks;
• BitGo – Delivering enterprise grade security;
• Xapo – Offering custodial services with up to 95% offline storage;
Best Self-Custody Multisig Wallets
Some of the best self-custody multisig wallets include:
• Ledger Nano S & X – Securely store cryptocurrencies;
• Trezor One & Model T – Advanced security features such as U2F authentication;
• Coldcard Mk3 – Advanced BIP39 passphrase protection;
Regardless if you choose a collaborative or a self-custody multi sig wallet for your bitcoin storage needs, make sure you understand what each solution entails before making your choice.