Is Multisig Worth the Extra Complexity?

[Tiaramane]

One thing I’ve been thinking about lately is how much responsibility comes with owning Bitcoin.

Self-custody gives you control, but that control also means protecting your keys and having a plan if something goes wrong.

That’s why I find multisig interesting. You don’t have to rely on a single private key, so losing or compromising one key doesn’t necessarily mean losing your Bitcoin.

It does add some complexity, though.

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough?

[Ambatman]

Multi sig isn't for everyone
If you don't understand it can even create more risk than its benefit.

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough

I would say well secured wallets is enough rather than just a single wallet in saving all your funds.
Besides rather than the complexity of multisig you can make use of a good passphrase.

That’s why I find multisig interesting. You don’t have to rely on a single private key, so losing or compromising one key doesn’t necessarily mean losing your Bitcoin.

Yeah for a 2 of 3 which is usually commonly used doesn't mean 2 of 2 doesn't exist
Here a single key lost means the Bitcoin becomes inaccessible.

[Chibit01]

What's the point of using multisig waller when all the access key is held by you (one person) unless you set it up right and access can't be obtained by another from you then it's safe. Same way if you can carefully save your 12/24 words seed phrase your funds are going to be protected and safe.

The safety lies on how the person protects the access key.

[Ashawowo(OS)]

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough?

For personal holding, I'll advice you use a single signature wallet with a very strong passphrase of 25 - 30 character length comprising of Uppercase, lowercase, numbers and special characters. I don't consider multisignature wallet necessary for personal holding.

 Multi-signature wallet is best for organizations where there's shared custody of funds. You'll pay higher fees when you're sending transactions from multisignature wallet as all computations are done on chain. Each cosigner has a different seed phrase and managing the different seed phrases could also introduce complexity, so it's better you use a single signature wallet and extend the security using a passphrase. Then be sure to store the seed phrase and pass phrases in different locations and offline.

[EL MOHA]

It does add some complexity, though.

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough?

There is this common saying that “To whom much is given much is expected” this is the case for self custody because when we demand for self custody then we should be ready for extra security consciousness and this is what most people are still not able to do and end up with losing their coins on custodial platforms.

For me Multi sig has it complexities and best owner of such set up are two or more people trying to hold coin on one single wallet or better off for institution holdings and avoiding dependence on one key but this doesn’t limit an individual to not own a wallet of such set up,

The only problem is that if a single person actually set this type of wallet up there is a tendency of a single point of failure like the wallet will be set using one wallet or the seed phrases are not well back up due to redundancy, it is base on this that I will say as a single person single sig is much better.

You just add extra layer of security like a passphrase with probably more than 30 characters as your passphrase and stored both separately and you are good. This saves you money from buying multiple hardware wallets or devices  for Multi sig

[BitMaxz]

What's the point of using multisig waller when all the access key is held by you (one person) unless you set it up right and access can't be obtained by another from you then it's safe. Same way if you can carefully save your 12/24 words seed phrase your funds are going to be protected and safe.

The safety lies on how the person protects the access key.

I think the OP just wants to increase its wallet security by just using multisig, but having a multisig wallet, I believe, in the future if the network is congested, expect high TX fees during that time. It's secured, but that's the bad news for multisig users.  

Nowadays, having or generating only 12/24-word seed phrases if you are generating them into a device connected to the internet, we do not know how protected it is.
For me, the offline way to generate a seed phrase with an extra word or passphrase would be enough to make sure your wallet is far from online attacks with an extra layer of protection due to the passphrase.

I prefer this to having a multisig wallet, but it can combine these two methods to ultimately make a much more secure wallet only if you are fine shouldering the high TX fees from multisig.

[ryzaadit]

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough?

Too many keys to use, meaning you need too many ways to handle how you protect, back up, and handle the keys. Yes, multi-signature is a great way to protect your assets and funds. But it also comes with the price of handling everything: backing up multiple seed phrases and how to store them properly. Otherwise, one single mistake and you can lose your entire life savings.

What's the point of using multisig waller when all the access key is held by you (one person) unless you set it up right and access can't be obtained by another from you then it's safe.

Some people use it to protect their wallet with more security; even if someone exploits and knows your seed or your wallet is compromised, they can't send your funds due to the need 2-of-2 or at least 2-of-3 to execute the transaction.


I think the best way is at least:

• Self Custody
• Use an air-gapped device
• Use at least a 24-word seed phrase
• Add Passphrase/Extra Word BIP-39

Should be enough, and then comes the stored system you're gonna do. Multi-sig a little bits scary for me cause to many things to be handle.

[EluguHcman]

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough?

Multisig is more likely a wallet guiding system of controlling private keys to tighten the security of corporative investors such as families or companies.
There seed phrases are split amare st members who are in custody of controlling the wallet.

So like the first member replied, multisig is not for everyone and as an individual investor or crypto user who admires Privacies and prioritizing on self custodial, you only need to hold your keys yourself because sharing it would also reduce your rights to control your own wallet.

[stadus]

Theres nothing wrong if you want to protect your Bitcoin.

However, you have to understand that complexity might result in more mistakes.
so if you will ask me, this is how I will treat it.

1) For a small amount, no need for multisig,
2) for a bigger amount, its necessary for extra protection, its not complicated if you will learn it, especially if its necessary to protect your Bitcoin.

[Outhue]

One thing I’ve been thinking about lately is how much responsibility comes with owning Bitcoin.

Self-custody gives you control, but that control also means protecting your keys and having a plan if something goes wrong.

That’s why I find multisig interesting. You don’t have to rely on a single private key, so losing or compromising one key doesn’t necessarily mean losing your Bitcoin.

It does add some complexity, though.

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough?

OP, clearly you have already complained about self custody, it gives total control but it comes with a burden of protecting your keys, this makes me to believe that multisig isn't for someone like you. Multisig is alot more complicated for someone who finds it hard to protect their own keys, it's true that multisig is far more secured but this is for people who are ready to take full responsibility, or else it will lead to losses, I don't dare mess with multisig myself but I made sure that I applied passphrase to my recovery seed for extra security, I will rather advice you to do the same instead of messing with multisig.

[darkvector-dev]

In my opinion: for the vast majority of people, a hardware wallet + strong PIN + 24 words + a GOOD passphrase is more than enough.

The remaining minority often doesn't really need multisig for security reasons but for more management than protection: multiple people who need to control the same funds, inheritance setups, shared business wallets. That's where multisig makes sense.

What people sometimes forget is that self custody already demands discipline, precision and competence. One single mistake and EVERYTHING IS GONE FOREVER. Adding more complexity than you actually need doesn't make you safer, it just gives you more ways to fail.

A solid single wallet with good setup is probably the right amount of complexity. Not the maximum, the right amount.

[X-ray]

One thing I’ve been thinking about lately is how much responsibility comes with owning Bitcoin.

Self-custody gives you control, but that control also means protecting your keys and having a plan if something goes wrong.

That’s why I find multisig interesting. You don’t have to rely on a single private key, so losing or compromising one key doesn’t necessarily mean losing your Bitcoin.

It does add some complexity, though.

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough?

If you don't hold that much and only for personal holding, single wallet with passphrase should suffice as long as the entropy is strong.

However if you hold good amount, like millions in your self custody. Nothing wrong with multisig, even multi-vendor multisig is great.

Can't be paranoid these days and if I hold millions in my self custody, I won't risk it. Better safe than sorry.

Spending more to secure millions still make a lot of sense.

[hd49728]

Self-custody gives you control, but that control also means protecting your keys and having a plan if something goes wrong.

That’s why I find multisig interesting. You don’t have to rely on a single private key, so losing or compromising one key doesn’t necessarily mean losing your Bitcoin.

With either single signature wallet or multisig wallet, you must secure and control your private key(s). Without private keys, you can not sign your transactions with either single signature or multisig wallet.

It does add some complexity, though.

Would you consider multisig necessary for personal holdings, or is a well-secured single wallet still enough?

Multisig wallets add more complexity from wallet creation to wallet use later, while cost you more in transaction fees. If people are careless, they can not secure their either single signature wallet or multisig wallet.

[LIST] Multisig wallets.
Creating a multisig wallet.

Because of more complexity, to use multisig wallets, people must back up their wallets, test wallet backups for wallet recovery, and even fund a wallet with a small fund, then practice to use that multisig wallet for broadcasting and signing from cosginers.

[freedomgo]

Can't be paranoid these days and if I hold millions in my self custody, I won't risk it. Better safe than sorry.

Spending more to secure millions still make a lot of sense.

Exactly, its worth the extra effort if the purpose is to increase the security of your holdings. Bitcoin should be treated that way, as its not like bank deposits where transactions can be frozen, Bitcoin is unique with irreversible transactions, therefore utmost care is needed. if you dont know how to secure your assets, its too risky to invest and hope that you'll enjoy that long term hold. Hackers have evolved, we should be aware of that, and the only way to fight against them is to ensure the right security is in place.

[Sandra_hakeem]

What's the point of using multisig waller when all the access key is held by you (one person) unless you set it up right and access can't be obtained by another from you then it's safe. Same way if you can carefully save your 12/24 words seed phrase your funds are going to be protected and safe.

The safety lies on how the person protects the access key.

I think the OP just wants to increase its wallet security by just using multisig, but having a multisig wallet, I believe, in the future if the network is congested, expect high TX fees during that time. It's secured, but that's the bad news for multisig users.

There are more downsides when using it than advantages. First of all, multisig wallets were created for that shared control so who am I sharing 3 different keys with? What exactly is the point? Even if I can save the keys all by myself, the complications that can involve misplacing one of the three keys, knowing fully well you can't access that wallet without signing in all of them is scary. Afaik, it was made for business and large treasuries or organizations and joint crypto institutions,.not for the average person.

Hear me out: I do not find anything wrong in trying to protect your coin, after all even cold storages aren't safe anymore these days.