If you are investing in cryptocurrencies, you should be aware of the wallets to store your coins into. Many frauds and loosing of private keys is not uncommon in the crypto world. Here are some of the best multi-signature wallets you should be aware of to keep your coins safe and secure.
Traditional wallets use a single signature system i.e. in which a single private key is used for verifying and signing a transaction. Although it may seem more facilitating, it is a very risky system and not entirely secure. If this single key is misplaced or stolen, then the investor can lose all the coins.
To remove these disadvantages of traditional hardware and software wallets, multi-signature wallets are introduced.
What does a Multi-Signature Wallet means?
As their name suggest, a multi-signature wallet requires multiple keys to authorise a transaction. The responsibility of possession is not autonomous but is divided among different signatures. This technology makes it completely safe and secure.
These types of wallets require M-of-N signatures. For example, you configure your multisig wallet for 5-of-7 authorized signatures, which means at least 5 signatures out of 7 signatures will be required to verify the transaction. Only then the transaction will become a valid transaction.
The main advantage of using a multi-signature wallet is making your bitcoins ultra-safe and secure. It also removes the power from the hands of a single person and the power is decentralised.
Best Multi-Signature Wallets in the Crypto Market
Electrum wallet is the oldest Bitcoin wallet which gives a multi-signature feature which was released under a MIT license. It is the most trusted bitcoin wallets in the market with a 15-of-15 signature to authorize Bitcoin transactions. It is available for Windows, Android, Linux and Mac OSX.
Armory is an open-source HD wallet with multi-signature and cold storage facility. It gives a 7-of-7 signature in its Lockboxes feature.
Copay is a HD wallet which supports multi-signature addresses and the user is in charge of all the private keys. It provides up to 2-of-3 signature to verify and sign the transaction. It also provides testnets on iOS and Android.