Multi-Signature – Review of Multi-Signature Fund Protection Strategies

I want to protect my Bitcoin and my assets. threat model The idea is to access one of Sid’s two paper copies in order to retrieve the wallet and steal the funds. To mitigate this risk, I am considering a 2-out-3 multi-signature wallet option. My first strategy is:

So I have 4 geographically separated secret locations (excluding myself). I only have one hardware wallet. This means that even if your main device is stolen, your Bitcoin is safe because you still need one more key. The same is true if location 1 or 2 is discovered and the hardware wallet device is stolen (since there is only one hardware wallet). butFrom a seed perspective, two seeds will be damaged.

The first question is whether an attacker can steal funds without exposing two seeds or with three seeds. ~ have to How do I recreate my wallet and take my funds? (Assume the attacker has access to both seeds to regenerate the private key. and (This is not possible with the multisig wallet set up on my personal computer.) I think this is because recovering a multisig wallet in Electrum requires 3 seeds (or 1 seed and 2 public keys from a co-signer). But I actually wanted to check back in with the community. Bitcoin cannot be moved with only two seeds exposed.. This setup effectively gives you cold storage when moving your bitcoins. In this case, you need to go to location 1 or 2, get hardware wallet 1 or 2, and co-sign with hardware wallet 3.

Another option is hidden wallet With your crypto using one wallet. In this case, two copies of the seed and two copies of the passphrase can be stored in four geographically different locations. Once your seed is exposed, your hidden wallet cannot be accessed, and once your password is accessed, your hidden wallet cannot be recreated. In the latter case, the only vulnerability is if the hardware device is stolen and used to move money (either physically manipulated or used directly, although use may be restricted by the device PIN).

The second question is whether the first option provides much higher entropy for protection. In terms of storage costs, the cost is the same in both cases and requires the use of 4 locations.