Can a multisig wallet receive Bitcoin as normal? Or are there extra steps to receive Bitcoin with this set up?
#asknostr #bitcoin #btc #coldstorage #multisig
Discussion
Receiving with a multi-sig wallet works exactly the same as with a standard, single-sig.
So let’s assume there are three private keys in this example; a 2 of 3 multisig set up. Would each private key have their own public addresses?
No, the xpub for a multi-sig is created using the three keys initially, and whatever wallet you are using will have that xpub for the purpose of creating receive addresses with no need to interact with the private keys to create them.
Thank you man! Helpful as always! 🙏🏻
You bet! Make sure you keep your wallet.dat file somewhere safe, and preferrably a couple redundancies. It is what you would use to import the xpub into another wallet if you switch devices. It is also absolutely essential in order to recover your funds should you lose one of your keys.
A wallet.dat file? Somewhere safe like an external hard drive? And where would I even find that file?
Depends on what wallet software you used to create the multi-sig. But yes. An external hard-drive... Encrypted on a cloud drive... In a safe-deposit box on a quality thumb drive. All of the above if you want.
No one can steal your funds using the wallet config file. They can just see your balance and create receive addresses. So it's not something that needs seed-phrase level paranoia about storing it.
And sorry, usually it is a .json or .bsms for the wallet config file.
Multi-sig addresses are just longer. But it's still a normal receive address.
The trick is the sending. It takes up more block space to send because it requires more signatures. 😉
