Is it safe to call this another safeguard?

[lovesmayfamilis]

The problem, it seems, will always be who holds these wallets. One or ten; if a person is careless about storing their seed phrases and does not know the basic knowledge of handling their funds, it will not help them. Of course, a loss from one wallet will prevent the loss of funds in another wallet, but it is easier and cheaper to learn all the rules of security than to waste your energy and attention on several wallets.

[Lucius]

Diversity is a thing, I have been advised my times that this is one way of Not losing it all, however user error got the best of someone with. 3milliom worth of crypto in a cold wallet.
~snip~

Someone who has $3 million worth of cryptocurrencies and loses them because of some stupid thing like entering a seed somewhere online is not someone who will profit in the long run, even if they use multiple different wallets/accounts. In my opinion, it's not just about where you keep your private keys, but whether you even understand what you're actually doing in the whole thing.

Someone buys a hardware wallet, generates a seed and saves it to the cloud, thinking it's a good way to store a backup, and completely unaware of what they've done, they live in the belief that their cryptocurrencies are safe. In other words, someone who has a hot wallet on a computer with good internet hygiene and an offline backup is safer than someone who has a hardware wallet and has stored their seed inappropriately.

[Darker45]

Especially if you have millions, having 2 devices is certainly better than having only one, although you can also generate multiple seed phrases from a single device.

If I had $3 million in Bitcoin, I'd probably split it into different storage devices as well, each with a different brand even. It's certainly safer that way. I might even keep one as a decoy in case of a robbery or a $5-wrench attack. What's $100 anyway if you have millions, right?

[Hyphen(-)]

If I have $2,000, I will store each $1,000 in different wallets, and split my fund to two wallets. It's easy to do, to manage, and it's safer for my fund.
Is it truly hard to create two wallets, back them up, and store wallet backups to use for recovery if needed?
It's not hard.

While if I store my fund in only one wallet, if any technical or physical thing happens, I have risk to lose all my money, and clearly I don't want that.

For an experience person who is used to handling Bitcoin wallets, it is very easy, but for beginners who don’t have extensive knowledge it can be hard because they might find it difficult or stressful to handle seed phrases especially if they are using external wallets for the first time.
If you decide to buy and send your Bitcoin into two or three different wallets it is a wise decision and a safe decision for who is already used to Bitcoin and knows how important the security of our wallets are, but for beginners it can be stressful that’s why it is advisable to start with one and understand it better before deciding to create more wallets.

[Fivestar4everMVP]

Diversity is a thing, I have been advised my times that this is one way of Not losing it all, however user error got the best of someone with. 3milliom worth of crypto in a cold wallet.

I am thinking, if he has more than one cold wallet and split that into 1.5million each, he would still have 1.5million left, which is what created this thought of mine, is using more than one cold wallet another safeguard practice?

User error is what people are mostly prone to, it could affect overall portfolio, having more than one cold storage in this case looks like a good option? Or not.

I don't want to go into how easy or hard it is for somebody to get into error or mistake in cold wallet that could lead to any loss of funds at all, not to talk of losing such amount as high as $3m, someone with such amount of money obviously is not a crypto newbie and should know how to avoid any mistakes or errors that could lead to such loss, and I don't want to debate on the authenticity of your claim, so I am just going to focus on what you suggested.

It's a good idea but for some one like myself, I won't be needing more than one hardware wallet, and the reason is because there are still alot of great mobile wallets that I can use as my hot Wallet and treat the hard ware wallet as my cold storage, lets not forget that the more hardware waller devices one has, the more they risk misplacing one or even both, so better to keep things simple and easy to effectively manage. One hardware wallet serve as cold storage, then multiple mobile wallets serving as hot Wallets depending on how rich I am.

[Ucy]

Ofcourse, the best practice is to split coins you can't afford to lose into multiple parts by storing them in different addresses with their own individual private keys or seedphrases.

The coins have to be split in multiple parts until you don't have an individual chunk that's too risky for you to lose. For example if you have a thousand dollar worth of Bitcoin, and it's too risky to have it all in one address, split in 5 parts, and that will be $200 worth of Bitcoin in multiple accounts/addresses. If having 200 in an address is still too risky, then split it further until you are comfortable with an amount in a single address that isn't too risky or big for you too lose

[Filicius]

The problem, it seems, will always be who holds these wallets. One or ten; if a person is careless about storing their seed phrases and does not know the basic knowledge of handling their funds, it will not help them. Of course, a loss from one wallet will prevent the loss of funds in another wallet, but it is easier and cheaper to learn all the rules of security than to waste your energy and attention on several wallets.

And now that you mention one or ten, why limit only to two or three wallets? In the case of HWs, for example, I would ask myself what percentage of a certain amount stored is enough to justify the cost of the device, and I would only ignore it in the event that the number of wallets was so large that it was uncomfortable to use.

Who knows, it may not technically make much sense, but for those of us who don't know that much, the cheap cost of these devices (when we're not talking about simple paper) seems justified in relation to the value they can store.

[Franklyn-wood]

One hardware wallet can have more than one wallet address and each will have their different recovery seeds, how about that? Still on one device, there is no point using two different devices.

The person of interest is that friend who lost 3 million, I will like to know how that happened, if it's his fault which I believe it is he doesn't need two separate wallets, he needs to figure out the mistake he made and learn from it.

I'm very sure that this can't happen to me because it's been several years that I have been stacking some Bitcoin in my hardware wallet I am sure that I am doing all possibilities not to mess something up.

Maybe it's because I don't have up to a million, if I have up to that amount I can consider opening a second wallet address with different recovery seed, there is no need for a new hardware wallet.

This must be neglegience from the person who it happened to and not just the amount lost. He must have mistakenly exposed his seed phrase by saving it on his mobile or computer for quick access which  was tracked and hacked through malicious files download or sent to him that he opened or downloaded to his phone. I just know something went wrong somewhere that leads to such massive lost and not because he has such amount in it.

[Zaguru12]

any user error that doesn't leads you to exposing your seed or private key or loosing them entirely, then there will be  no need of having multiple wallet as one wallet can generate multiple address that you can split the coin into. it will be more tedious to handle more seed or private keys to different wallet. 

I think it’s a typo error from you. Little correction is that creating two or more addresses doesn’t mean you are actually creating multiple addresses. You are simply just using another address and technically all coins on those addresses are actually under one seed phrase or let me say under one master private key, an access to that seed phrase gives access to all those addresses and the coins on it.

The reason why a new hardware wallet is actually mentioned here is not that one hardware wallet doesn’t have the ability to create multiple seed but the problem is that you can actually have access to just one of the seed phrase or wallet as per say at a go. In fact for you to actually have access to create a new wallet on a seed phrase you would have to actually even reset the hardware wallet it self.

So for convincing once you want to have two different wallet on a cold wallet precisely hardware wallet then you would have to get an extra hardware wallet

[Cryptomultiplier]

Ofcourse, the best practice is to split coins you can't afford to lose into multiple parts by storing them in different addresses with their own individual private keys or seedphrases.

The coins have to be split in multiple parts until you don't have an individual chunk that's too risky for you to lose. For example if you have a thousand dollar worth of Bitcoin, and it's too risky to have it all in one address, split in 5 parts, and that will be $200 worth of Bitcoin in multiple accounts/addresses. If having 200 in an address is still too risky, then split it further until you are comfortable with an amount in a single address that isn't too risky or big for you too lose

In a real life world sense, we don't have just one account number with one bank, but with different banks for different reasons and so it should be for holding Bitcoin in a cold wallet. Don't just use one, have different ones but not too many so as not to lose track of everything you own.
I see it as the ultimate safety hack to keep hackers and scammers and thieves guessing which is which or to protect oneself from human errors that could result into a total loss of  accumulated coins.
It might even be a good thing to have different kinds of coins besides Bitcoin saved up in another separate wallet just to be cautious and better equipped for what the future holds.

[Ojima-ojo]

Even though the users made use of two cold wallets if he make this kind of error he will definitely lose his investment.


Is not about the number of wallet you split your assets into, is about how well ou protect your wallet and assets, the error is not about wallet but about proper self custody and handling.

[Antidote47k]

Having multiple cold wallets makes sense, but it depends on what you’re trying to protect against.

If the biggest risk is user error, like exposing your seed phrase, keeping poor backups, or signing a malicious transaction, then having two or three wallets doesn’t automatically make you safer. In fact, you’re now responsible for multiple seed phrases and recovery backups, which gives you more opportunities to make a mistake.

Splitting your funds is more useful if you’re worried about a device being lost, damaged, or stolen. That’s where diversification can actually reduce risk.

For someone holding a significant amount of BTC, I’d put more emphasis on good backup practices, making sure you can actually recover the wallet before storing large amounts, and, if the amount justifies it, looking into multisig. More devices can help in some situations, but they don’t make up for weak security habits.

[Findingnemo]

It is good to keep your stash in different ones than in a single one, so in case of failure whether an exposed private key or an wrench attack still you can have something left for you but still 1.5 million is still big money to lose. So the best thing is to keep it balanced, depending on how much bitcoin is in the context, if it is in millions, then it's worth to keep it in a few and invest some time as well to know how to keep it even safer, with an airgapped device or just put them in an address that will be locked for specific time or something like that.

[Youngrebel]

That part of loosing everything is what I fear most and I think using more than one cold wallet is a smart way to a it looks like the safer side and just like we diversify investments, it will actually make more sense if we also diversify storage because if one wallet is lost, or damaged, because of user error just as u mentioned you have not lost your entire capital and profit which is nice but the i also feel like that’s another responsibility on its own because you now have more than one wallet to focus on and also backups to manage securely and if one is not careful that stress could make you make mistake.

[Asuspawer09]

Diversity is a thing, I have been advised my times that this is one way of Not losing it all, however user error got the best of someone with. 3milliom worth of crypto in a cold wallet.

I am thinking, if he has more than one cold wallet and split that into 1.5million each, he would still have 1.5million left, which is what created this thought of mine, is using more than one cold wallet another safeguard practice?

User error is what people are mostly prone to, it could affect overall portfolio, having more than one cold storage in this case looks like a good option? Or not.

It's a good practice in my opininon having multiple wallets could actually save you long term or in some cases because you are spliting your funds in multiple wallets, that just means that if you get hack surely they couldn't get your all of your funds in one transactions, if one of your wallet is compromised they probably you only have a fair amount their but still save the rest of your funds. It would make sense if you forget the password or private key, something like that of one wallet, but you still have another one, or if you forgot all of them, then it's still a huge problem.

I think it's still a good practice, but it just cannot be a solution if you are the one who is making the mistake, like forgetting your password, something like that, but this is just like similar to diversifying your asset so that you could make multiple sources of your funds. It is still better to actually diversify into other assets; it is the safest since the crypto world is just risky for all of your funds.

[Peanutswar]

Wait I guess you mean is human error... Not a user error, well if you are using a hardware wallet there is a confirmation with the device first before proceeding the transactions such as copy of address, confirmation of transaction and even logins so you have the rights to make a double check with the transactions before trying to proceed so now its a human error if they commit without double checking the transactions its now their negligence.

Even me I do often make a distribution of the asset to make sure I if there is a compromised happens its not all of my money but if you have a budget for a large amount for crypto why not having a multiple hardware wallet for your safety. We keep saying that dont put all of your eggs in a single basket.