Should I move my cold storage to multisig?

[redsn0w]

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).

Not exactly, I suggest you to read here :

- https://en.bitcoin.it/wiki/Address#Multi-signature_addresses


TL;dr :
Addresses can be created that require a combination of multiple private keys. Since these take advantage of newer features, they begin with the newer prefix of 3 instead of the older 1. These can be thought of as the equivalent of writing a check to two parties - "pay to the order of somebody AND somebody else" - where both parties must endorse the check in order to receive the funds.

The actual requirement (number of private keys needed, their corresponding public keys, etc.) that must be satisfied to spend the funds is decided in advance by the person generating this type of address, and once an address is created, the requirement cannot be changed without generating a new address.


Here https://coinb.in/multisig/ you can 'play' a little bit with the creation of multiSig addresses.

[StevenS]

Great comic! LOL

For many more comics like that, see xkcd.com.

[unamis76]

I currently don't use multisig. The few Bitcoins I have are on paper wallets and on cold storage devices.

When I started saving Bitcoins on cold storage I was still pretty new to all this and saved them on a paper wallet. Later I discovered Armory and I've been using it since.

I've been thinking a lot about multisig in the last few months, but I don't think they would add much more security to the setup I already have. I can either have a split paper backup in many places or the private keys and redeem script to use a multisig address in many places, so there isn't much of a difference. Armory has lockboxes, but I haven't really tried them, as I see no need to use them...

Either there is no advantage in a multisig address on top of cold storage saving, or I'm missing something If one can physically obtain a split backup, they can also obtain everything they need to spend from a multisig address.

I only see multisig as an advantage on cold storage saving when it comes to having a shared address, just like a shared bank account... Maybe it's really useful in those cases.

That's partially why I'm asking, if I should go multisig.
I was thinking, if someone broke in and found my private keys to a standard address they could figure out how to use them pretty easily, even if they weren't advanced with bitcoin.  If someone broke and got my multisig keys and the redeemScript they would have to know how to execute a raw transaction in bitcoin core in order to steal them, so there is that additional level of security that it requires more technical knowledge to use.

The question is, is it worth the extra hassle?

In my opinion it's not, but that's just me. Nobody is Bitcoin knowledgeable around here... Even if they were, it's not easy to physically get what's required to spend my cold storage coins. Summing up, I think a mix of physical protection and minimum security measures in storing private keys digitally that makes cold storage good. Don't get me wrong, multisig is amazing, but for folks like us, storing funds just for ourselves, I don't really see a big need in multisig

[jaberwock]

What is the "dice" you refer?

I hope it is not a dice site.

[coinableS]

What is the "dice" you refer?

I hope it is not a dice site.

A dice site? Like gambling?  Oh no way.
I mean dice like real physical dice.

[coinableS]

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 ?

Yes, you can do it in bitcoin core console.
All you need is the 3 public keys in hex format (i.e. 0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d).

And do the command:  createmultisig 2 '["pub_key","pub_key2","pbk_key3"]'

Example to make a 2 of 3 multisig wallet.

Code:

createmultisig 2 '["0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d","03f5c15b4b3045f585fc732d6a31abcf323fc7ee7745e18b9298072e7aa9a33d49","023293a9b92f639b1774d18194ab586cc095bc0eca53c6250fbe608c98ed25430b"]'

Also, don't send any money to a multisig address unless you are comfortable with sending raw transactions.

[ticoti]

If you want to secure your bitcoins get a trezor,but you don't need a multisig,because that does not provide more security to your bitcoins if you are the only owner

[GenTarkin]

I simply create multiple copies of BIP38 bitcoinpaperwallet.com paper wallets. Put a good password on it, print up copies of the same one and put them everywhere.
Download the source and do it all offline.

[BTC_Superman]

No, I do not think this is a right decision to move multisig. I think cold storage is more safer than multisig.

[louise123]

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 ?

Yes, you can do it in bitcoin core console.
All you need is the 3 public keys in hex format (i.e. 0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d).

And do the command:  createmultisig 2 '["pub_key","pub_key2","pbk_key3"]'

Example to make a 2 of 3 multisig wallet.

Code:

createmultisig 2 '["0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d","03f5c15b4b3045f585fc732d6a31abcf323fc7ee7745e18b9298072e7aa9a33d49","023293a9b92f639b1774d18194ab586cc095bc0eca53c6250fbe608c98ed25430b"]'

Also, don't send any money to a multisig address unless you are comfortable with sending raw transactions.

What do you mean comfortable with sending raw transactions?
Doesn't a multisig address accept coins sent using the normal way?

[Muhammed Zakir]

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 ?

Yes, you can do it in bitcoin core console.
All you need is the 3 public keys in hex format (i.e. 0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d).

And do the command:  createmultisig 2 '["pub_key","pub_key2","pbk_key3"]'

Example to make a 2 of 3 multisig wallet.

Code:

createmultisig 2 '["0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d","03f5c15b4b3045f585fc732d6a31abcf323fc7ee7745e18b9298072e7aa9a33d49","023293a9b92f639b1774d18194ab586cc095bc0eca53c6250fbe608c98ed25430b"]'

Also, don't send any money to a multisig address unless you are comfortable with sending raw transactions.

What do you mean comfortable with sending raw transactions?
Doesn't a multisig address accept coins sent using the normal way?

In Bitcoin core, you need to manually create a raw transaction and sign it. He is talking about it. Newbies can use different client which is multisig-friendly. For example, Armory.

[louise123]

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 ?

Yes, you can do it in bitcoin core console.
All you need is the 3 public keys in hex format (i.e. 0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d).

And do the command:  createmultisig 2 '["pub_key","pub_key2","pbk_key3"]'

Example to make a 2 of 3 multisig wallet.

Code:

createmultisig 2 '["0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d","03f5c15b4b3045f585fc732d6a31abcf323fc7ee7745e18b9298072e7aa9a33d49","023293a9b92f639b1774d18194ab586cc095bc0eca53c6250fbe608c98ed25430b"]'

Also, don't send any money to a multisig address unless you are comfortable with sending raw transactions.

What do you mean comfortable with sending raw transactions?
Doesn't a multisig address accept coins sent using the normal way?

In Bitcoin core, you need to manually create a raw transaction and sign it. He is talking about it. Newbies can use different client which is multisig-friendly. For example, Armory.

OK, thanks.
I didn't know about that.
So far I am only using Bitcoin Core with standard addresses but I was considering multisig addresses.
i guess I will try Armory then as I don't like too complicated things