Is Using Multiple Wallet Better Than Sticking To One Wallet?

[suzanne5223]

I have always been wondering when it comes to managing my crypto if it would be best to manage everything using a single wallet or to create multiple wallets.
Some people actually like the idea of having all their crypto in one place as this seems easier to use,  there are also those who think that spreading funds across different wallets will be more safer.

For future benefits and security, simplicity shouldn't be something we should prioritize based on what always happened to Bitcoiners who prioritized simplicity over security.
Yes, spreading crypto across multiple wallets is generally a better way to be safer than using just one wallet, which will lead to losing the whole holding if the wallt us compromised because no matter how experienced we are in keeping crypto safe, we cannot guarantee to escape human error, which will make our wallet vulnerable to attack.

Trust be told,  using one wallet is very simple. You don't have to disturb yourself when it comes to managing multiple wallet private keys and you don’t have to remember different backups. It is all in one wallet,  which actually makes things easier most especially for beginners.

However, when you use multiple wallets, things get a lot more complicated, you have to be really organized,  or it is very likely that you might end up losing access to one of them.

Nothing is complicated when it comes to the use of multiple crypto wallets unless you're the one complicating things yourself because you don't need to remember the wallet private information; all you need to split write the wallet back up information on an air gap device, which you will keep in a different secure location.

. One wallet for long term holding
. Another wallet for daily  spending
. Another wallet for testing / experimenting with new platforms

This approach is a very good way for you to stay organized and It can also reduce the risk  involved when using different wallets.

The approach seems nice, but I won't say very good because the longterm holding wallet should be more than one.

[EL MOHA]

Using multiple  wallet comes with more responsibilities of keeping all the backups safe.
This doesn't  mean like you have to put everything  in one place, that's nonsense and defeats the purpose of using multiple wallets. Now here's  where the responsibilities increases, a wallet should have more than one backup in different  locations, you can't use same particular spot for others too, the .ore the spot grows the more likely one gets exposed someday.

Using passphrase only for multiple wallet,  as they either need to find the passphrase or  the seed( and that's if they even know what they have with then is a passphrase).

Having multiple wallets isn't  a bad idea

Yes the idea is actually great to have multiple wallet most especially if you have cold wallet then I will seriously recommend having another hot wallet because you cannot be using your cold wallet for daily transactions but can simply just have any hot wallet for that,

In terms of back up i actually think that you can actually have one seed phrase with different passphrase, we know that once a word or passphrase is added or removed then that wallet is different from the original one because that’s a new seed phrase and that’s a new wallet. This will help in actually looking for single backup.

But the risk is that it’s actually a one way risk because once the main seed phrase is actually exposed the risk is high because theirs a one of point failure. Also if the wallet actually used is having problems like the seed phrase generated doesn’t have strong entropy then its affect all the wallet using that see phrase

[uchegod-21]

Using just one wallet may seem very convenient, but it is still very risky, especially if you have very huge amount of bitcoins in it and you are always performing transactions on  it.  You risk exposing your wallet to attacks from your regular activities. It is good to have a cold wallet for your long term savings and a hot wallet for your everyday use. It is still not bad to have more than two wallets; it is just a way of splitting your risks and making sure that all your eggs are not kept in one basket.  

Having multiple wallets is not an authorisation to care less about security. You can still lose everything if you are not security conscious.

[Outhue]

Let's say you create more than one wallet with different recovery seeds, if your normal.waybof keeping your recovery seed is by storing them in a safe with key locks it won't matter, because they are all offline in a paper and stored in a safe, they all stay in the same position, what I don't like when people talk about keeping recovery seed is the habit of keeping one in your room and keeping extra in the kitchen or another location.

While some people can say that this is a good strategy I don't buy it, if your recovery seed is kept in two different locations there is a higher chance that one location will get leaked, you are now left with two guard rooms to guard by yourself, meanwhile you are just one person/body, keeping an eye on two separate locations becomes harder.

[SeriouslyGiveaway]

Let's say you create more than one wallet with different recovery seeds, if your normal.waybof keeping your recovery seed is by storing them in a safe with key locks it won't matter, because they are all offline in a paper and stored in a safe, they all stay in the same position, what I don't like when people talk about keeping recovery seed is the habit of keeping one in your room and keeping extra in the kitchen or another location.

While some people can say that this is a good strategy I don't buy it, if your recovery seed is kept in two different locations there is a higher chance that one location will get leaked, you are now left with two guard rooms to guard by yourself, meanwhile you are just one person/body, keeping an eye on two separate locations becomes harder.

One location or two or more locations is not the problem if locations you chose to store your wallet backups are safe locations. A location or locations must be safe as a first and most important condition, without this condition, that or these locations should never be your wallet backup storage places.

If any person stored wallet backups like this person in a very careless way, it's risky even the location is his bedroom.
How do you safely keep your recovery phrase written on paper?

Yesterday, my mom did a general cleaning on my room and when she's done, I saw the recovery phrase of my Trezor hardware wallet on the garbage can which I placed on my computer table, I also have that same copy on my wallet but still can't stop myself to tremble in fear to lose that piece of paper.

[Oshio-man]

It depend the kind of amount of millions or billions you want to save in crypto wallet, if you are planning to invest huge amount of funds in crypto I will advice you not to put all your funds in one wallet because scammers can gain access to the wallet to withdraw all your crypto, and I believe you know what will happen to your funds in that wallet, which is not any investors wish, I think using two wallets to save your crypto is more reliable than one wallet in case anything happen to one wallet it will not create fear in your mind than to learn what give the scammer access to your wallet, I believe you will not quit crypto investments than to learn a new thing that will make you enjoy your crypto investment.

[Juicyhome]

It depend the kind of amount of millions or billions you want to save in crypto wallet, if you are planning to invest huge amount of funds in crypto I will advice you not to put all your funds in one wallet because scammers can gain access to the wallet to withdraw all your crypto, and I believe you know what will happen to your funds in that wallet, which is not any investors wish, I think using two wallets to save your crypto is more reliable than one wallet in case anything happen to one wallet it will not create fear in your mind than to learn what give the scammer access to your wallet, I believe you will not quit crypto investments than to learn a new thing that will make you enjoy your crypto investment.

You're right, just they way we have more than two traditional banks accounts, as an investors you need more than one account or wallet to store your coins. Since network can't be trusted you don't need to put hope in one wallet, the day you will wan to withdraw your money, your wallet network could fail you, and if the money is needed for emergency you might miss out.

It's good to have more than one wallet, because some wallet gas fees are different,some are high while some are low so you would like to store your coins on the one that's reliable and cheap in transaction.

[bitbollo]

Not counting here wallet for cold storage, keeping in account only hot wallets:
there are many wallets nowadays that are offering interesting features for both bitcoins altcoins and even fiat coin!
Anyway the best approach based on fee expenses would be the approach with less complications as possible and a clear different pathway for each wallet.

[satscraper]

~

It would be better to use the word signer instead of wallet  because the latter comes in many forms and flavors.

So, when we talk about signers as the entities that have the ability to sign transactions, I would advocate keeping several of them to maintain the multisig ^{or even MPC, which is much harder to implement on your own than multisig, but still possible} setup, which would greatly increase the safety of your stash.

Note that the signers you use for this can be of both types i.e. software and hardware and you can even use the mix of two.

If you still prefer to talk about wallets I would say that one good option  ^{like Passport Core} would satisfy almost all safety requirements for stash, regardless of whether it belongs to a novice or an experienced user.

[Zaguru12]

You're right, just they way we have more than two traditional banks accounts, as an investors you need more than one account or wallet to store your coins. Since network can't be trusted you don't need to put hope in one wallet, the day you will wan to withdraw your money, your wallet network could fail you, and if the money is needed for emergency you might miss out.

I think you need to actually go and do some learning about bitcoin wallets. Bitcoin wallets are not traditional banks where the bank network cannot be accessed and therefore you can use another bank for your transaction. The wallet simply holds the private key to access your bitcoin or any other coin on the blockchain. So if there is network congestion on maybe bitcoin network then you cannot actually go to another wallet and make transactions on bitcoin network for less fees or something related to that, the congestion is on bitcoin network and there is only one network.

It's good to have more than one wallet, because some wallet gas fees are different,some are high while some are low so you would like to store your coins on the one that's reliable and cheap in transaction.

This can be put out as it is best to have or buy multiple different Altcoins because some altcoin network are less congested and have lower fees than others but this is nothing about wallet, the only thing you need in terms of fees from wallet is to use a wallet allows you customize your fees so you can set it to your preference.

[Bryan jessy]

It depend the kind of amount of millions or billions you want to save in crypto wallet, if you are planning to invest huge amount of funds in crypto I will advice you not to put all your funds in one wallet because scammers can gain access to the wallet to withdraw all your crypto, and I believe you know what will happen to your funds in that wallet, which is not any investors wish, I think using two wallets to save your crypto is more reliable than one wallet in case anything happen to one wallet it will not create fear in your mind than to learn what give the scammer access to your wallet, I believe you will not quit crypto investments than to learn a new thing that will make you enjoy your crypto investment.

Putting all  your funds in one wallet is just like putting all your eggs in one basket, if I have more Bitcoin I will prefer  having a multiple wallets, with each serving special purpose for me. Having one wallet is just as risk as having multiple wallets, if someone is not careful enough because it is the same possible factor that is liable to one wallet, same goes to multiple wallets too. Though everyone have their own opinion on how many wallets they want to operate. But I recommend multiple wallets for old users and one wallet for beginners.

[moneystery]

Personally, I think users that are new to crypto should stick to one wallet until they learn better and as they gain more experience,  they can begin to use multiple wallets to provide better security and more options to use  different services.

The point isn't how many wallets they have, but how well they secure the ones they have. They might have one wallet, but if they can secure their seed phrase and manage it, then one is sufficient, there's no need for multiple wallets, which can be cumbersome... especially if their assets are small, they don't need to focus on increasing their wallets, they only need to focus on securing them.

[Dex_master25]

It depend the kind of amount of millions or billions you want to save in crypto wallet, if you are planning to invest huge amount of funds in crypto I will advice you not to put all your funds in one wallet because scammers can gain access to the wallet to withdraw all your crypto, and I believe you know what will happen to your funds in that wallet, which is not any investors wish, I think using two wallets to save your crypto is more reliable than one wallet in case anything happen to one wallet it will not create fear in your mind than to learn what give the scammer access to your wallet, I believe you will not quit crypto investments than to learn a new thing that will make you enjoy your crypto investment.

Putting all  your funds in one wallet is just like putting all your eggs in one basket, if I have more Bitcoin I will prefer  having a multiple wallets, with each serving special purpose for me. Having one wallet is just as risk as having multiple wallets, if someone is not careful enough because it is the same possible factor that is liable to one wallet, same goes to multiple wallets too. Though everyone have their own opinion on how many wallets they want to operate. But I recommend multiple wallets for old users and one wallet for beginners.

Using a single hardware wallet or an air gapped wallet for me could be a better management practice to a newbie than trying to manage more than one wallet at a time because of the scare of losing your funds.
Perhaps as a newbie grows in the system of cryptocurrency and it's management, using multiple wallets at a time could prove more efficient than just using one.

[HONDACD125]

Multiple wallet is good to avoid losing all your funds incase, you get hacked or your seed phrase was stolen. This wouldn't leave you empty handed because you still have other wallets with funds in it.

Yes, but that can only be useful if someone stores the seedphrases or password phrases of each wallet in different places, because if you can get hacked or compromised, you will lose everything you have in all your wallets if someone can find all the information at one place. People often make this mistake of keeping all their backups and important information at one place, which makes it very easy for someone to steal everything you have if they get their hands to your storage of backups.

That's why, it's important for people using multiple wallets to have multiple places to store the phrases separately so that if one of the storages gets compromised, you shouldn't lose everything. Another mistake is to use a single device for everything, like if you have mobile wallets, you shouldn't save all of them in a single device along with your seed phrases and everything, because if your mobile gets compromised somehow, you won't be able to save a single penny if the person who compromises is an expert in the work he is doing.

[DYING_S0UL]

It really depends, you know, and people may have different opinions on this. But this is what i think...

If the amount is very significant (which I never had, lol), then personally I would choose multiple wallets to hold them.
But if the amount isn't that big, then a single wallet would do the trick, no need to spread it across multiple places.
Now this amount entirely depends on that person.

There is a saying "Never put all your eggs in one basket", I believe in this principle. It's better to lose some than lose everything. If you put everything in a single place, and then a accident happens, all of it is gone, the whole 100% of it. We certainly wouldn't want that.

[aoluain]

Its good practice to literally not put all your eggs in one basket.

That means the use of multiple wallets to store your HODL'ings, and to expand on this its
good practice to keep them in different locations.

In terms of the seed phrases and passwords they also should be kept in different locations.

Its also worth having a decoy which can be surrendered upon a security breach!

[arwin100]

Its good practice to literally not put all your eggs in one basket.

That means the use of multiple wallets to store your HODL'ings, and to expand on this its
good practice to keep them in different locations.

In terms of the seed phrases and passwords they also should be kept in different locations.

Its also worth having a decoy which can be surrendered upon a security breach!

Indeed a good practice we don't know on when we remain safe, since we all know that there are so many risk like hacking and scamming attempts. That's why its good that they should not put everything in single wallet only. We can also add that many hackers set a trap and put malware on some apps or sites that we are visiting. So having a decoy or multiple wallets will save us from any huge risk.

Executing those things that adds another layer of protection is best action to do, since with this for sure that those bad actors cannot easily penetrate and stole our wallets. It will be good if all people is aware not only doing this and other type of risk so they can do early counter action to maximize their protection.

[Razmirraz]

Questions like these will yield varying answers depending on how each individual best stores their assets. When it comes to managing crypto assets with one wallet or using multiple wallets, both actually have their own advantages and disadvantages. It's easier to use one wallet and less hassle when accessing it, but if your wallet is hacked or you lose your seed phrase, all assets stored in that wallet are at risk of being lost. However, if you use multiple wallets and spread your assets across different wallets, this type of method can reduce the risk of losing all your assets if one of your wallets is hacked or the Seed phrase is lost, but this type of approach is more complicated to manage.
If you have a large amount of assets, then using multiple wallets can be the best option to increase security.

[Peanutswar]

Basically im using multiple wallets. We keep having a saying of dont put all of your eggs in a single basket.

Ideal if using multiple wallet is for different purposes. Like you said im using a wallet for along term hodling this wallet are just sleeping in the long term hodling for the next cycle, next is an active wallet for a daily or an active transactions so if ever you wanted to trade for the possible chance of position and different opportunity, next also I have added recently is the asset for staking of course I dont want to connect my wallet for staking and lending wallet because its good for a long term asset investment too you possible earning a token, coins or even an airdrop from their platform you are using.

Also if the wallet get compromised you didnt burn all of your money just a small portion of it only.

[pawanjain]

Do you prefer using one wallet or  multiple wallets,  and why?

Too much of anything is good for nothing.

Simplicity is good but if you put all your funds at one place, it puts you at risk of losing your all your funds together.
Diversification is good but if you diversify a lot, it will complicate things for you.
So choose the short and secure way by using just 2 to 3 wallets for different purposes.

Use one wallet for long term storage which you will not touch for another 4-5 years.
One wallet for short term holding so that you can use it when you are really in need of it or for short term trading.
The last wallet should contain minor amount of funds for day to day transactions.
This is a balanced approach and good for many people.