can someone sell me on multisig?
I understand the paranoia if you have 10+ btc in custody but is it really worth setting up for a shrimp like me?
Bip39 passphrase seems like more than enough security. Also I fear that mismanaging 2/3 keys is more likely than losing 1 key and forgetting a passphrase.
#asknostr
It just depends on what risk profile you are comfortable with, and what tradeoffs you are willing to have.
It might be good to understand multisig so that you have more options available. You never know when your risk tolerance will change, or if the threats you are guarding against suddenly warrants it.
Personally I am against multisig simply due to the fact that I need geographical separation and I fear that recovering all (or at least 2/3) of the keys will take far too long if situations arise that I need to escape somewhere. You are absolutely correct in that the current threats are too great for me to implement a more complicated setup. Maybe in a more secure environment I’d adopt multisig.
That’s why Casa and Nunchuk exist. Nothing wrong with single sig + passphrase, but it is a single point of failure at the end of the day. Pick the trade off that works best for you. But I must say collaborative custody (I personally use Nunchuk) has come a long way and the user experience is top notch in my experience, specially when it’s KYC free and you have things like TAPSIGNERS. Even if you don’t want to use their collaborative custody services, Nunchuk makes it really easy to set up a multisig that you can easily recreate in Sparrow.
Thank you this was the answer i was looking for. I’ve heard that tapsigners have a limited shelf life though and maybe not ideal for long-term storage. am I just misinformed?
I can see how someone might think that, but I don’t know it for a fact. It’s just a piece of plastic. If you take care of it I don’t see why it wouldn’t work for decades. But even if stopped working, it has a Backup password in back of the card, which you can use to create a software key to sign a txn. And you can write down that backup password on a piece of paper/metal to hedge against losing the TAPSIGNER.
I wouldn’t recommend having all your funds in single sig using a Tapsigner, but it makes sense for secondary wallets with smaller amounts and/or as a part of a multi-sig set up. Nunchuk uses it as the inheritance key in their paid plan.
So a 2/3 coldcard tapsigner nunchuck setup sounds like a plan with two steel backups.
and just to clarify each key of a multisig can hold their own funds? I’m assuming so.
That’s a very solid set up.
Personally, I don’t like having more than one steel back up on a 2 of 3 multi sig, but if you go for it look into SEED XOR or/and use a passphrase with at least one of the devices.
Yeah key can hold its own funds.
thanks so much this gives me a lot to think about
