If you’re a cryptocurrency investor, you know how important it is to keep your funds secure. With the increasing popularity of cryptocurrencies, cybercrime is also on the rise, and hackers are constantly looking for ways to steal funds. One solution to this problem is multi-signature (multi-sig) wallets.
Multi-sig wallets require multiple signatures or approvals before a transaction can be executed, adding an extra layer of security to your funds. This means that even if a hacker manages to gain access to one of the private keys, they still can’t access your funds without the other required signatures.
Key Takeaways:
- A Multi-Signatire cryptocurrency wallet is a digital wallet that requires multiple signatures to authorize transactions.
- The best Multisig Crypto wallets are Armory, TotalSig, Guarda Wallet, Linen Wallet, YPlus Wallet, and Blue Wallet.
- The Top Multisig Hardware wallets are Ledger Stax, Trezor Model T, and Keystone Pro.
- Wallets Require 2-3 transaction signings for added security of your Bitcoin storage.
What is a Multi-signature Wallet?
A Multisig Wallet is a type of cryptocurrency wallet that requires multiple signatures before transactions can be executed. It’s like a joint bank account where more than one person must approve a withdrawal before it can be processed.
These are commonly used by businesses, organizations, and high-net-worth individuals who want to have an additional layer of security for their funds. For example, if a wallet requires two signatures and one of the signatories’ private keys is compromised, the funds are still safe because the thief cannot access the wallet without the other signature.
The number of signatures required to approve a transaction can vary depending on the wallet’s configuration. Typically, multisig wallets require 2-3 signatures, but it’s possible to have more depending on the user’s preference.
Pros and Cons
| Pros | Cons |
|---|---|
| ✔️Increased security | ❌Complexity |
| ✔️Shared control | ❌Higher fees |
| ✔️Risk mitigation | ❌Less privacy |
| ✔️Trustworthy third-party services | ❌Human error |
| ✔️Prevents fraud | ❌Limited adoption |
| ✔️Higher limits | ❌Technical knowledge |
| ✔️Business use |
Best MultSig Hardware and Software Wallets: 9 Safest Picks
TotalSig is a multisig multi-chain wallet that supports over 1000 digital assets. You can add up to 32 co-signers. TotalSig works with various blockchains and networks and allows users to swap, transfer, receive, and store different crypto assets with convenience. Totalsig wallet is based on MPC protocol and 256-bit AES encryption.
1. Trezor Model T: Best MultiSig Hardware Wallet
The Trezor Model T supports multi-signature (multisig) wallets, which provide an additional layer of security for managing cryptocurrency assets.
With the Trezor Model T, you can set up multi-signature wallets using various combinations of public keys and private keys. It supports different multisig configurations, such as 2-of-3, 3-of-5, and so on, which means that you can require multiple signatures from a predefined group of people or devices to authorize a transaction. Read out the full Trezor Model T review.
2. Keystone Pro: Best MultiSig Cold Wallet
Keystone Pro is another multisig air-gapped hardware wallet with support for 5,500+ cryptocurrencies. You can also connect it to 20+ software wallets including Metamask for storing your keys offline.
It has a 4-inch touchscreen display, a camera for QR code scanning, and Fingerprint screen lock security for added key encryption. It offers features such as two-factor authentication (2FA), biometric authentication, and a strong password system to add an extra layer of security to the wallet. Check out our detailed Keystone Pro review.
3. Ledger Stax: Safest MultSig Cold Storage Wallet
Ledger Stax is the newest hardware wallet from Ledger company after Ledger Nano S Plus and Ledger Nano X. (Read full Ledger Stax review)
It features Bluetooth and USB-C connectivity, a touchscreen interface, wireless charging capabilities, NFT support, customization options, compatibility with over 5000 coins, a Secure Element chip for enhanced security, and is compatible with macOS and Windows as well as iOS and Android devices.
Read: Ledger Nano S vs X vs Stax
4. Guarda Wallet: Best MultiSig Ethereum Wallet
Guarda Wallet is a multi-currency wallet that allows users to securely store, manage, and exchange cryptocurrencies.
It is also a multisig wallet for Bitcoin and Ethereum transactions. This added security measure makes it more difficult for hackers or unauthorized individuals to access funds. Users can also connect their Guarda Wallet to a hardware wallet like Ledger and Trezor for added security. Here is the detailed Guarda Wallet review.
Key Features
- Multi-platform support (web, desktop, mobile, and browser extension)
- Staking and DApps Integration
- Built-in exchange
- Advanced security features (Multsig, 2FA)
- Private key control
- Dedicated customer support
- Multi-currency support
- Token Generator
- Integration with hardware wallets.
5. Yodaplus Multisig Wallet
YPlus Multisig Vault is a secure wallet solution that supports multiple cryptocurrencies, including XDC, XRC20 Tokens (SRX, PLI, USNOTA, GBEX), stable coins (SGDG, EURG, HKDG, USDG), and even XRC721 collectibles.
What sets YPlus Multisig Vault apart is its support for various hardware wallets such as D’cent, as well as its seamless connection with the XDCPay wallet.
With YPlus Multisig Vault, users can easily set up a custom multi-signature wallet with up to 15 signers, which means multiple signatures are required to approve any transaction. This feature adds an extra layer of security, making it harder for hackers to access the wallet and steal cryptocurrency.
Additionally, users can customize the approval process for transactions and set transaction limits. YPlus Multisig Vault also provides a user-friendly interface, making it easy for users to manage their cryptocurrency on the go using their mobile devices.
Key Features
- Multi-signature functionality
- Support for multiple cryptocurrencies
- User-friendly interface
- Cold storage
- Two-factor authentication
- Seamless integration
- Advanced security features
6. Linen Wallet: Best for Ethereum and Polygon
Linen Wallet is an exceptional multisig wallet that provides unparalleled security and simplicity for buying, selling, and swapping cryptocurrencies. It is the top choice for Ethereum and Polygon users looking for the best multisig wallet in the market.
Linen Wallet is backed by the smart contract of Gnosis Safe, which is renowned for its high standards in crypto security. It has been trusted by crypto funds and whales for years, making it one of the most reliable wallets in the industry.
The wallet is designed to provide maximum security with a three-key system. One key is stored in your cloud, another in your mobile device, and the last one is kept in Linen’s secure server infrastructure. With this system, you can recover your wallet seamlessly using your cloud drive, email, and phone number.
Key features
- WalletConnect using QR Scanning
- Buy Crypto Assets With Cards
- Self-custody or Non-custodial wallet
- No desktop, Hardware wallet connectivity
- The Android Mobile app is still in beta
- Backed and funded by the community
7. Blue Wallet: Top Bitcoin Multisig Vault
Blue Wallet Multisig Vault is a user-friendly and secure cryptocurrency wallet. It allows users to store their Bitcoin in a multisig vault. Multisig vaults require multiple signatures or approvals before a transaction can be executed, providing added security and preventing unauthorized access.
Blue Wallet Multisig Vault supports up to 2-of-3 multisig, generating three private keys, but only requiring two to sign a transaction. This provides added security as even if one key is compromised, the funds in the wallet remain safe.
Creating a new multisig wallet in Blue Wallet Multisig Vault is easy and can be accessed from any device. Privacy is a key feature of Blue Wallet Multisig Vault. It uses the Tor network and supports onion addresses, ensuring that the user’s IP address is not revealed during transactions.
It also uses Hierarchical Deterministic (HD) wallets, generating a new public key for every transaction, making it difficult for anyone to track the user’s transactions.
Key Features
- Customize the number of keys and address types with full flexibility.
- Import or recover setups with ease and compatibility with popular wallets.
- Backup signing keys and pubkeys safely at the same time.
- Securely backup and distribute coordination setup (pubkeys) for enhanced protection.
- Maximize security with support for PSBTs and QR codes.
- Quickly adjust your setup for emergency key rotation or fast signing.
- Available for Android and IOS mobile devices
8. Armory Wallet: Best Multi-Signature Open-Source Wallet
Armory Secure Wallet is a top-of-the-line Bitcoin hot wallet that offers unparalleled security and advanced features. This innovative wallet boasts open-source technology and provides users with cold storage and multi-signature support.
Armory’s robust design is trusted by individuals and institutions alike, making it the ultimate choice for generating and storing Bitcoin private keys.
Key Features
- Cold Storage For Everyone
- Open Source and Extensible
- Enterprise Consulting Available
- It can be used with Glacier Protocol
- High Security with Multisig transactions
9. Electrum: Best MultiSig Bitcoin Wallet
Electrum is an open-source Bitcoin wallet that has been around since 2011. It was created by Thomas Voegtlin, and its development is supported by a community of volunteers.
One of the key features of Electrum is its focus on security. The wallet uses a hierarchical deterministic (HD) wallet structure, which means that each transaction generates a new address, making it harder for someone to track your Bitcoin holdings.
Another feature of Electrum is its compatibility with hardware wallets such as Trezor and Ledger.
Key Features
- Electrum stores encrypted private keys on your computer
- Your funds can be recovered using a secret phrase
- It uses servers that index the Bitcoin blockchain for fast transactions
- Private keys can be exported for use in other Bitcoin clients
- Electrum servers are decentralized and redundant for 24/7 access
- It verifies all transactions in your history using SPV
- You can keep your private keys offline and use a watching-only wallet when online
- You can split the permission to spend your coins between multiple wallets
- Electrum supports third-party plugins such as multisig services and hardware wallets.
How to Choose the Best Multisig Crypto Wallet
- 🔒 Security: The most important factor to consider while choosing a multisig crypto wallet is security. Look for wallets that offer robust security features, such as two-factor authentication, password protection, and biometric authentication.
- 🤝 Trustworthiness: Choose a wallet from a trusted and reputable provider with a proven track record. Check user reviews, ratings, and feedback to assess the reliability of the wallet.
- 💸 Supported cryptocurrencies: Make sure the multisig wallet supports the cryptocurrencies you want to store.
- 📱 User interface: A user-friendly interface makes it easy to manage and access your funds. Choose a wallet that has a simple and intuitive interface.
- 🔄 Transaction fees: Check the transaction fees charged by the wallet provider. Choose a wallet that offers reasonable fees and transparent pricing.
- 🔑 Private keys: Look for wallets that allow you to control your private keys, giving you full ownership and control over your assets.
- 📈 Future development: Choose a wallet that is actively developed and has a strong community of users. A good wallet will continue to add new features and improve its security measures over time.
- 👍 Customer support: Ensure the wallet has good customer support in case you encounter any issues while using it.
How do multi-signature wallets work?
Multisig wallets are cryptocurrency wallets that require multiple signatures to access funds. A unique multisig address is created by combining the public keys of participants. The wallet creator sets the required number of signatures needed to authorize transactions.
Each participant generates their own public-private key pair, with the private key kept secret. When a transaction is initiated, each participant signs it using their private key.
The signatures are combined, and the resulting signature is verified before the transaction is executed.
Multisig wallets can still function with the remaining participants in case of a lost or inaccessible private key. They can also add or remove participants as long as the required number of signatures is maintained.
How do I create a multisig wallet?
Creating a multi-signature wallet involves setting up a wallet that requires multiple signatures to authorize transactions. This is useful for businesses or individuals who want to ensure that no single person has complete control over the wallet’s funds. Here’s how you can create a multi-signature wallet:
- Choose a multi-signature wallet provider: Select a wallet provider such as BitGo, Electrum, or Armory, that offers multi-signature wallets. Create an account with the provider.
- Set up the wallet: Follow the provider’s instructions to set up your multi-signature wallet. Provide details such as the number of signatures required to authorize transactions and the public keys of the signatories.
- Add signatories: Add signatories to the wallet. Each signatory will have their own private key used to sign transactions. The number of signatories required to authorize transactions depends on the wallet’s setup.
- Secure the private keys: Each signatory must secure their private key. Losing private keys results in the loss of funds, so it is crucial to store the keys securely.
- Authorize transactions: To authorize a transaction, the required number of signatories must sign the transaction using their private keys. Once the required number of signatures has been collected, the transaction will be authorized and processed.
Multisig vs Traditional Wallets
| Key Point | Multisig Wallets | Traditional Wallets |
|---|---|---|
| Security | ✅ | ❌ |
| Control | ✅ | ❌ |
| Accessibility | ❌ | ✅ |
| Complexity | ❌ | ✅ |
| Trust | ❌ | ✅ |
| Backup | ✅ | ❌ |
| Recovery | ✅ | ❌ |
Final Thoughts
To conclude, selecting the best multisig crypto wallet requires considering several factors, such as security, user-friendliness, and compatibility with various cryptocurrencies.
Armory, Electrum, and Bitgo are excellent choices mentioned in this article. It is crucial to select a wallet that fulfills your specific requirements and provides a suitable level of security.
Conducting thorough research and making a knowledgeable decision can offer peace of mind while managing your digital assets.
Related FAQs
Who needs Multisig Crypto Wallets?
Multisig crypto wallets are for those who want more security and control over their cryptocurrency assets. Investors, exchanges, businesses, high-net-worth individuals, and crowdfunding campaigns can benefit from them.
What is the best Multisig wallet for ETH?
Different Multisig wallets for ETH have different pros and cons, so it depends on what you are looking for. Some of the top and reliable Multisig wallets for ETH are Trezor Model T, TotalSig, Guarda, and Ledger Nano X. These wallets let you make and control Multisig accounts with various options, such as 2-of-3, 3-of-5, or 4-of-6. They also work with other ERC-20 tokens and some other cryptos.
What is a 3 of 5 Multisig wallet?
A 3 of 5 Multisig wallet is a kind of Multisig wallet that requires three out of five signatures to approve transactions. This means that there are five co-signers who hold a private key each, and any three of them must agree to sign a transaction before it can be done.
Is Trezor a Multisig wallet?
Trezor devices can also be used as part of a Multisig setup, where they act as co-signers for transactions from a Multisig wallet. Trezor supports different Multisig options, such as 2-of-3, 3-of-5, or 4-of-6, which can be created and managed using compatible software wallets such as Electrum, Armory, BitGo, or Trezor Suite.
