Multisignature wallet is the best wallet setup to safeguard funds.

[promise444c5]

Your last statement is also another reason why some people are not using multisig, they believe that such form of security is not for a retail investors but only meant for companies. Who said so?

Actually, setting up a multisig isn’t /shouldn’t  be that complicated but it actually adds more responsibility of having to keep safe more backups and the more the backups the more the risk of eventually exposing the seed if not properly hidden.  

Sure anyone can use it if  they can handle it , but  multiple seed plus passphrase is still safe enough for most people IMO..  

[X-ray]

It kinda raise risk of losing funds due to user mistake if you're not careful enough because you're going to secure more than just 1 seed phrase.

It's worth if you have the time and competency to do it, but most importantly you're able to manage storing 3 seed phrase in 2-of-3 setup and stores all the XPUBs and to eliminate single point of failure, use hardware wallet from different vendors.

That's 3 hardware wallet you'll need to manage. I'm sure there are a lot of people who can do it though.

[OcTradism]

It kinda raise risk of losing funds due to user mistake if you're not careful enough because you're going to secure more than just 1 seed phrase.

It's worth if you have the time and competency to do it, but most importantly you're able to manage storing 3 seed phrase in 2-of-3 setup and stores all the XPUBs and to eliminate single point of failure, use hardware wallet from different vendors.

Set up and recover a multisig wallet is more complicated than do this with a single signature wallet so with newbies, it increases risk of losing funds. With newbies, it's recommended for them to start with something safe but simple, and single signature wallets are their best choices.

They need to use a good wallet software, generate their wallet, back up, and never skip a step of testing backup before using any wallet. Then they must understand importance of strong password for encryption of their wallet access, and things will be well even without multisig wallets.

How to back up a seed phrase?
[GUIDE] How to Create a Strong/Secure Password

[pooya87]

One important thing that people who talk about the additional security of multi-sig wallets forget is that this type is not secure just because it needs more signatures, the security comes from the fact that different keys are kept separately from each other.

In other words if you are (1) creating all the keys using the same device and (2) keeping them in the same place and sign the tx using the keys in the same place.... then you are not actually gaining that additional security. It is almost the same as a single-sig security.

So you have to change both (1) and (2) meaning the keys have to be generated and kept on separate devices and separate locations and each time you want to spend your coins, the signing process becomes more complex with additional steps to get those keys and sign with each of them.
That's how you truly gain the additional security of a multi-signature setup instead of just having the illusion of having additional security.

[Sammysmart001]

In other words if you are (1) creating all the keys using the same device and (2) keeping them in the same place and sign the tx using the keys in the same place.... then you are not actually gaining that additional security. It is almost the same as a single-sig security.

That just it, you are giving yourself a fake security, if you create all your keys on one device and store them together. No different from having a regular single signature wallet.

For one to get the benefit of a multisig setup, you should use different devices for each and the should be store separately. But wanting to do this raises a chance of wanting to make mistakes and having to lose your funds cause you will manage multiple seed phrases and also hardware wallet.

But as a beginner starting up you should just stick to a normal single signature wallet and importantly, learning how to back it up safely is a much better choice for now.

[Nheer]

Your last statement is also another reason why some people are not using multisig, they believe that such form of security is not for a retail investors but only meant for companies. Who said so?

Actually, setting up a multisig isn’t /shouldn’t  be that complicated but it actually adds more responsibility of having to keep safe more backups and the more the backups the more the risk of eventually exposing the seed if not properly hidden.  

Sure anyone can use it if  they can handle it , but  multiple seed plus passphrase is still safe enough for most people IMO..  

It's true Multisig is not hard to setup and it is a very good security option but just because it is good and strong security option doesn't automatically make it the best choice for everybody.

For some it's really not easy to manage multiple keys, the responsibility might be too much to handle and they can easily forget where they saved them. To these set of people Multisig wallet might be a liability to them. If the keys can be managed and stored properly without any issues it really offers a very strong security and the fact that one key being compromised doesn't give an attacker access to the wallet makes it a good good choice. But I still think a well backed up single signature wallet with seed phrase and passphrase properly stored can still be useful for some people. At the end it's not only about choosing wallet with strongest security but choosing a wallet with good security that you can manage with any unnecessary risk.

[FirmWars]

Your last statement is also another reason why some people are not using multisig, they believe that such form of security is not for a retail investors but only meant for companies. Who said so?

Actually, setting up a multisig isn’t /shouldn’t  be that complicated but it actually adds more responsibility of having to keep safe more backups and the more the backups the more the risk of eventually exposing the seed if not properly hidden.  

Sure anyone can use it if  they can handle it , but  multiple seed plus passphrase is still safe enough for most people IMO..  

Is true, more responsibility is added if it's about protecting multiple signing seeds.

Assuming someone have a large money in Bitcoin which is supposed to be for life saving and the person have studied about improving their wallet security through multisig or pass phrase wallet, won't this person be disciplined enough to make sure they protect all the keys independently in safe different place?  If someone have a significant amount of Bitcoin in their custody, extreme security becomes more important to them than just minor security.

[KiaKia]

Multisig wallet is the best, there is no touching from AI or hackers yet, no single bad news about Multisig every show up online, that says alot already, if anyone can handle the few confusion then they should go with it, this wallet isn't for beginners though.

They need to learn about Multisig first before using it, and with the way AI hacks are showing up everday I think people won't be left with so much choices than to go Multisig, I am also prepared.

Multisig is hard and not hard at the same time, it depends on who is coming to use Multisig but I believe that it will be too complicated for beginners and newbies.

[Lucius]

~snip~

Multisig is definitely something that provides an extra level of security, but for most of those who own cryptocurrencies, it is still a complicated thing that they avoid or don't even know exists.

Agree, Bitcoin or cryptocurrency is already complicated for some of them too. These is why, Multi-sig is just not for everybody.

Honestly, I have never made such a wallet, but even though I use an air-gapped wallet that has a good reputation, considering everything that has been happening in the last few months, I think I will decide to take this step as well. AI has obviously become a real curse for everything online, including cryptocurrencies of course.

[Mrbluntzy]

One important thing that people who talk about the additional security of multi-sig wallets forget is that this type is not secure just because it needs more signatures, the security comes from the fact that different keys are kept separately from each other.

In other words if you are (1) creating all the keys using the same device and (2) keeping them in the same place and sign the tx using the keys in the same place.... then you are not actually gaining that additional security. It is almost the same as a single-sig security.

So you have to change both (1) and (2) meaning the keys have to be generated and kept on separate devices and separate locations and each time you want to spend your coins, the signing process becomes more complex with additional steps to get those keys and sign with each of them.
That's how you truly gain the additional security of a multi-signature setup instead of just having the illusion of having additional security.

You are right, but before someone starts to use Multisig setup, they are supposed to learn deeply all that is entailed by multisig usage and these points that you have extensively explained is what the person must surely learn, except the person just decide to be ignorant to what they have learned and decide to do what they please. When I started learned about how to set up multisig, its importance and how to make it more secure, that's when I learned all of this things you explained. So, it's important for someone to be well knowledge about this before proceeding to set it up.