Thread by @SquadsProtocol

1/ What if there was a better solution to protect your crypto funds than hardware wallets?

For individuals looking to securely hold their assets on Solana, a multisig like Squads is likely your ideal solution.

How to Use Multisig: A Guide for Individuals

2/ A multisig is a special program that holds assets on-chain and is governed by multiple private keys rather than a single seed phrase/private key.

This contrasts with traditional self-custody solutions where assets become vulnerable the moment the seed phrase is known.

3/ Relying on a hardware wallet means entrusting the entire security of your crypto net worth to a single entity.

Conversely, if open-source and immutable (non-upgradeable), multisigs are a superior alternative to cold wallets for securing crypto assets, even for individuals.

4/ Holding your funds in a multisig means that even if a malicious party gets access to one key, it cannot move your funds without the required number of signatures set.

It thus reduces the risk of lost/compromised keys and ensures no single point of failure exists.

5/ But how many keys and what threshold are ideal for my multisig?

Although it heavily depends on your needs, there are two setups usually well suited for individuals:

- 2-of-3: a balance of security and convenience;
- 3-of-5: for those seeking ultimate security.

6/ Keep in mind, the more keys required to transact, the harder it will be to move your funds.

If your primary aim is asset protection and not frequent operation, a 3-of-5 setup is perfect.

If instead you plan to transact daily/weekly, a 2-of-3 setup is more convenient.

7/ To set up a 2-of-3 multisig, consider using different hardware wallets like Keystone or Ledger. For optimal flexibility, include a hot wallet such as @phantom or @xNFT_Backpack.

This lets you manage daily transactions easily while keeping a cold wallet secure for emergencies.

8/ Using two hot wallets also works if they are stored on two separate devices.

For example, you could use the Backpack extension on desktop and the Phantom app on mobile, while the hardware wallet (e.g. @KeystoneWallet) is stored in a bank safe.

9/ With Squads, you can easily create a multisig to store and manage your funds on Solana:

- Swap assets with @JupiterExchange;
- Access staking solutions such as @jito_sol;
- Add your favorite contacts;
- or explore DeFi opportunities within our app section.

10/ Additionally, Squads has been multiple times audited by @osec_io and @Neodyme.

The Squads multisig program is also open source and immutable (non-upgradeable), which means that no one besides you can access or move your funds.

https://twitter.com/SquadsProtocol/status/1628776620243963904

If you're looking for the most robust solution to secure your funds, switch to Squads and spin up a multisig today: squads.so

To learn more about how to use multisig as an individual, check out our latest article:
squads.so/blog/multisig-…