Hopefully by now you know to keep your bitcoin in cold storage.
But not all cold storage solutions are created equal.
Standard Cold Storage
A hardware wallet and seed backup will protect you against common threats, but it leaves you with a single point of failure.
If your seed gets into the wrong hands, your stack is gone.
Using a complex passphrase avoids this single point of failure, but lacks flexibility. If either part of the backup is lost, you are locked out of your funds forever.
Multisig
Enter Multisig; a far more robust, secure, and flexible cold storage solution. A standard 2 of 3 multisig setup requires 3 hardware wallets, with any 2 needed to sign transactions.
Distributing these wallets geographically eliminates the threat of physical theft. And thanks to ⅔ redundancy, if you lose one of your keys, you don’t lose your bitcoin.
Multivendor Multisig
One overlooked threat is the hardware itself, through supply side failures or hacked firmware updates. Multisig solutions reduce this threat, but using different devices in your multisig eliminates it completely; if it turns out Ledger wallets have a fatal flaw, that same flaw won’t be present in ColdCards or Jades.
This is why Multivendor Multisig is the ultimate solution in bitcoin security.
This solution is invaluable to individuals looking to protect a significant amount of savings. If setting up a multisig solution sounds too complicated, never fear; we are here to help you.
