DIY MULTISIGNATURE WALLETS FOR SELF CUSTODY
There's been a bit of chatter around DIY multisignature wallets using hardware wallets from different vendors. As you dip your toes into it, here are some questions you might want to ask yourself.👇
There's been a bit of chatter around DIY multisignature wallets using hardware wallets from different vendors. As you dip your toes into it, here are some questions you might want to ask yourself.👇
1. What do I need to back up? What exactly am I backing up here?
2. What do I do if I lose one of the hardware devices?
3. What do I do if one hardware device is compromised?
2. What do I do if I lose one of the hardware devices?
3. What do I do if one hardware device is compromised?
4. What do I do if a hardware device updates to a new firmware that is no longer compatible with the multisignature software tool I'm using?
5. What do I do if the multisignature software tool I'm using is no longer compatible with a hardware device I'm using?
5. What do I do if the multisignature software tool I'm using is no longer compatible with a hardware device I'm using?
6. How often do I check my hardware devices to see if they're still functioning?
7. How often do I update the firmware to my hardware devices? Will this break anything? Have I tested post firmware update?
7. How often do I update the firmware to my hardware devices? Will this break anything? Have I tested post firmware update?
8. Where do I physically store my hardware devices?
9. Where do I store the seeds to the hardware devices?
10. Have I tested recovering my multisignature wallet?
9. Where do I store the seeds to the hardware devices?
10. Have I tested recovering my multisignature wallet?
11. Have I tested recovering my multisignature wallet in an alternative software to the multisignature tool I'm currently using? Do I get the same result?
12. Have I tested creating and signing a transaction from my multisignature wallet using all possible combinations?
12. Have I tested creating and signing a transaction from my multisignature wallet using all possible combinations?
13. If I need to restore my multisignature wallet, does the order of the devices matter in the software tool I'm using? Have I tested this?
14. Device specific considerations - Would you be comfortable with keeping (for eg) a Trezor One in a location that others have access to?
14. Device specific considerations - Would you be comfortable with keeping (for eg) a Trezor One in a location that others have access to?
15. Have I thought about this setup from an inheritance perspective in the event something unforeseen were to happen to me?
Side note: some examples of multisignature wallet software tools include electrum, caravan, specter and lily.
Side note: some examples of multisignature wallet software tools include electrum, caravan, specter and lily.
Whilst multisignature wallets add considerable security to your Bitcoin, DIY options right now present opportunities to shoot yourself in the foot if you're not careful. Some of the questions are deeply personal.
It takes time and effort to understand the complexities involved.
Freedom doesn't come for free.
Freedom doesn't come for free.
