Why Bitcoin Multisig Wallets are Important?
• Online threats such as malware, hacks and phishing attacks can lead to the risk of losing your funds.
• Multisig wallets have existed in Bitcoin since 2012 and offer a high level of security.
• DIY wallets are becoming increasingly popular for extra security and benefits users from countries with poor delivery services.
Collaborative Custody Wallets
Collaborative multisig wallets offer 2-out-of-3 key management where customers have control over one private key while the third party (an exchange or custodial company) holds the second private key online and the third key offline in cold storage. This provides convenience but at the expense of privacy due to KYC procedures, as well as geographical limitations.
Best Collaborative Multisig Wallets
The best collaborative multisig wallets include:
• Casa: Free basic wallet with no KYC policy
In self-custody wallets, users alone manage the distribution of private keys. Popular options include Trezor, Ledger, BitBox02, and more depending on individual needs such as budget and location restrictions.
Bitcoin multisig wallets provide an important level of security that is essential for protecting digital assets against potential scams or cyberattacks. Both collaborative custody wallets and self-custody options exist with their own advantages and disadvantages that depend on individual needs such as budget, location restrictions, privacy requirements etc.