Multisig Wallets: Secure Crypto Storage for the Modern Investor
A multisig wallet is a type of cryptocurrency wallet that requires two or more separate private keys to approve a transaction before it can be sent.
This type of wallet removes the single point of failure found in standard wallets, where one lost, stolen, or compromised key can move funds on its own.
Instead, multisig wallets use a threshold system, such as 'M-of-N', to determine how many signers must approve a transaction before it is sent.
The setup process for a multisig wallet can be complex and varies depending on the approach chosen. Three common approaches include self-managed multisig, collaborative custody, and smart-contract multisig.
While multisig wallets offer improved security, they are not foolproof and require careful management to function correctly.