Should I move my cold storage to multisig?

[EvilPanda]

Well I am new to the Cryptocurrency world...so I don't fully understand the meaning behind Coldstorage. Have read that word a lot in many different threads...just never got the guts to ask...What exactly is cold storage?

Cold storage is in other words an offline storage, it can be for instance a paper wallet or an encrypted wallet.dat stored on a USB stick. When you have a wallet that you're using daily to process transactions it's your hot wallet.

I keep my coins on Electrum, which is not a multisig wallet. I understand the advantages of a multisig. Then I would have to keep 3 "things" really safe instead of just 1. I might have to do that someday, when I have a huge amount, not worried about it now.

Same here. Maybe if I had a small fortune in Bitcoin I'd be more inclined to make paper wallets and stuff. When I had more coins I used a dedicated netbook running ubuntu that I turned on only to process the payments. Now I don't even bother and keep most stuff online, just divided between different wallets.

[crazyearner]

Well I am new to the Cryptocurrency world...so I don't fully understand the meaning behind Coldstorage. Have read that word a lot in many different threads...just never got the guts to ask...What exactly is cold storage?

Cold storage is in other words an offline storage, it can be for instance a paper wallet or an encrypted wallet.dat stored on a USB stick. When you have a wallet that you're using daily to process transactions it's your hot wallet.

I keep my coins on Electrum, which is not a multisig wallet. I understand the advantages of a multisig. Then I would have to keep 3 "things" really safe instead of just 1. I might have to do that someday, when I have a huge amount, not worried about it now.

Same here. Maybe if I had a small fortune in Bitcoin I'd be more inclined to make paper wallets and stuff. When I had more coins I used a dedicated netbook running ubuntu that I turned on only to process the payments. Now I don't even bother and keep most stuff online, just divided between different wallets.

Just make sure them sites are not going to go anywhere had that with 4 or more exchanges with online wallets. Lucky didn't have much in them and ran into problems going off line hacked and other news on them and come back and now waiting on re payments from the exchange that seems to not be budging much. Like you Panda I use online wallets to some level but too many sites now pop up and come and go just be careful with them

[MineForeman.com]

A multisig address will protect your from the "$5 wrench" attack.  If you use a 2 of 3 multisig address you keep one yourself, give one to you mom and then put a third in a safety deposit box.

That way if you die your mom can get the safety deposit box and access your coins, you can still access your coins without your mom by going to your safety deposit box or you can just send a transaction to you mom for approval (because, yeah, you mom always needs to approve your spending anyway ).

[johnyj]

When bitcoin reach $10K per coin, I might consider more secure measures, now offline storage is enough  

The real problem for me is that I want to spread the risk by using multiple addresses, then it is a pain to maintain several wallets at different locations, and I might forget about one of the encryption password If I don't repeat them every week

[crazyearner]

When bitcoin reach $10K per coin, I might consider more secure measures, now offline storage is enough  

The real problem for me is that I want to spread the risk by using multiple addresses, then it is a pain to maintain several wallets at different locations, and I might forget about one of the encryption password If I don't repeat them every week

10k per bitcoin ill fall of me chair if it ever got to that and 10x the bubble what went pop when gox went and then pop again and again. Will need some serious investments and people hauling and buying up to reach that with some serious demands for btc to ever get to that stage

[BitcoinPenny]

I only use paper wallets as cold storage lot safer than using anything else and only take them out when really needed to.

I know it's silly, but it always amazes me that with all the crazy technical algorithmic cryptographic hot/cold wallet innovations, the most secure might be paper.

Me

[BitcoinPenny]

A multisig address will protect your from the "$5 wrench" attack.  If you use a 2 of 3 multisig address you keep one yourself, give one to you mom and then put a third in a safety deposit box.

That way if you die your mom can get the safety deposit box and access your coins, you can still access your coins without your mom by going to your safety deposit box or you can just send a transaction to you mom for approval (because, yeah, you mom always needs to approve your spending anyway ).

Great comic! LOL But wouldn't they simply get your 1 of 3 multisig address, ask you who has the other multisig addresses, then visit your mom and give her the same "$5 wrench" attack? The multisig address idea endangers your mom, too.

In other words, only use the multisig technology if you hate your mom.

Regards,
Me

[MineForeman.com]

In other words, only use the multisig technology if you hate your mom.

Feel free to use your wife instead .

[BitcoinPenny]

In other words, only use the multisig technology if you hate your mom.

Feel free to use your wife instead .

Right after I use smart contract technology to take out the $1M life insurance policy.

(Please don't tell her I said that.)

Me

[StevenS]

and I might forget about one of the encryption password If I don't repeat them every week

It makes the most sense to save your backup unencrypted in a safe deposit box. If you die, you'll want your heirs to have access to your bitcoin.

If you're worried about the authorities or others getting access to your safe deposit box without your authorization, then you have bigger problems, and the multi-sig option among your cohorts is probably a better solution.

[Amph]

i'm still using the conventional 1 sig address and a usb for cold storage, i don't see the need to move them to a multisig address to be honest, as long as they are off-line encrypted wallet they are safe

[ensurance982]

A multisig address will protect your from the "$5 wrench" attack.  If you use a 2 of 3 multisig address you keep one yourself, give one to you mom and then put a third in a safety deposit box.

That way if you die your mom can get the safety deposit box and access your coins, you can still access your coins without your mom by going to your safety deposit box or you can just send a transaction to you mom for approval (because, yeah, you mom always needs to approve your spending anyway ).

I always keep telling people that multisig doesn't actually 'increase' the security of their coins or make the key more complex or whatever. But being protected against the $5 wrench attack makes so much sense, actually.... Thanks for that input!

[pereira4]

Whats a good way to cold storage the coins that isn't via a hardware wallet? Is the method of going to bitaddress.org, downloading the HTML and creating the wallet with the internet turned off a safe way to do this?

[Muhammed Zakir]

Whats a good way to cold storage the coins that isn't via a hardware wallet? Is the method of going to bitaddress.org, downloading the HTML and creating the wallet with the internet turned off a safe way to do this?

The bolded part is good and safe. Use both mouse and keyboard. When Mycelium Entropy is released, you can give it a try.

P.S. @OP: I recommend multisig address.

[inBitweTrust]

I recommend either multi-sig or Shamir's Secret Sharing where some of the keys are encrypted and digitized and some are secured physically in cold storage. Mixing physical and digital security will dramatically raise the costs of the attacker and only make you vulnerable to multi- million dollar , multi year efforts like Ulbrict and even he didn't secure his coins properly.  

Using a clean install of linux/ubuntu with armory wallet  on a spare computer and taking the right security precautions is one way to accomplish this.

Another is using mycelium entropy with Shamir's Secret Sharing.

Additionally, it is a good idea to split your BTC between multiple sets of sharded wallets so you don't have to import your whole life savings if you want to dip into your savings.  

Here is more info - https://bitcointalk.org/index.php?topic=858604

i'm still using the conventional 1 sig address and a usb for cold storage, i don't see the need to move them to a multisig address to be honest, as long as they are off-line encrypted wallet they are safe

Yes, this is sufficient for most people with small balances .. people who own more bitcoin should take extra security steps,.

[Troonetpt]

I think cold storage is more safe than multisig. All you should do is keep your private key away from online.

[redsn0w]

Whats a good way to cold storage the coins that isn't via a hardware wallet? Is the method of going to bitaddress.org, downloading the HTML and creating the wallet with the internet turned off a safe way to do this?

The bolded part is good and safe. Use both mouse and keyboard. When Mycelium Entropy is released, you can give it a try.

P.S. @OP: I recommend multisig address.

I think cold storage is more safe than multisig. All you should do is keep your private key away from online.

What do you think if the coold storage will be created with a multi signature address 2of3? This could increase the security and I am 100% sure .

[Muhammed Zakir]

Whats a good way to cold storage the coins that isn't via a hardware wallet? Is the method of going to bitaddress.org, downloading the HTML and creating the wallet with the internet turned off a safe way to do this?

The bolded part is good and safe. Use both mouse and keyboard. When Mycelium Entropy is released, you can give it a try.

P.S. @OP: I recommend multisig address.

I think cold storage is more safe than multisig. All you should do is keep your private key away from online.

What do you think if the coold storage will be created with a multi signature address 2of3? This could increase the security and I am 100% sure .

If you create it in an offline computer, it will be better. You should make sure a backup is made and nothing is exposed to a third person other who you trust.

[neurotypical]

I've never used a multisig wallet, not even sure what that is.
Does it mean you can create an address, give your address to get paid but once you get paid it automatically creates new addresses? (does this make sense? if that is not multisig then I want to know how to do what I just said).

[SpanishSoldier]

Is it possible to create multisig paper wallet ? If yes, how ?

Yea you can create one manually with bitcoin core in the console, and then save the 3 private keys, and the redeem script to paper. Easy for a typo error though, so I'd probably use a USB thumb drive instead of paper.

From the three private keys, how do I create one bitcoin address ? Does bitcoin core support this feature ?