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10 sats \ 0 replies \ @felipehere 7 Mar 2023 \ on: Rate My Multisig bitcoin
In order to rate your setup, it is crucial to understand how you are dealing with your seed phrases backups.
If your seed phrase backups for each multisig device are all located in the same house, the multisig setup wouldn't bring much additional benefit vs your original single sig setup. Both setups protect your savings against online/hacker attacks, due to its cold storage nature. However, they don't protect you against 1) house invasion/robbery; or 2) catastrophic loss (house burns).
In your 2-of-3 multisig setup, you are able to mitigate these 2 mentioned risks by keeping your seed phrases backups in different locations, such as:
- phone/computer: backup in a cloud-based password manager
- hardware wallet 1: backup at home
- hardware wallet 2: backup at a family member's house
You could keep improving the setup from here... Always ask yourself which risks you are eliminating/mitigating and which ones you accept (due to lower likelihood of happening). This exercise should help you to find the right balance of security and complexity for yourself 😀