Should I move my cold storage to multisig?

louise123

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Quote from: Muhammed Zakir on May 14, 2015, 11:04:35 AM

Quote from: louise123 on May 14, 2015, 10:50:25 AM

Quote from: coinableS on April 21, 2015, 07:38:18 PM

Quote from: SpanishSoldier on April 21, 2015, 08:40:59 AM

Quote from: coinableS on April 19, 2015, 01:30:21 PM

Quote from: SpanishSoldier on April 19, 2015, 01:11:37 PM

Is it possible to create multisig paper wallet ? If yes, how ?

Yea you can create one manually with bitcoin core in the console, and then save the 3 private keys, and the redeem script to paper. Easy for a typo error though, so I'd probably use a USB thumb drive instead of paper.

From the three private keys, how do I create one bitcoin address ? Does bitcoin core support this feature ?

Yes, you can do it in bitcoin core console.
All you need is the 3 public keys in hex format (i.e. 0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d).

And do the command: createmultisig 2 '["pub_key","pub_key2","pbk_key3"]'

Example to make a 2 of 3 multisig wallet.

Code:

createmultisig 2 '["0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d","03f5c15b4b3045f585fc732d6a31abcf323fc7ee7745e18b9298072e7aa9a33d49","023293a9b92f639b1774d18194ab586cc095bc0eca53c6250fbe608c98ed25430b"]'

Also, don't send any money to a multisig address unless you are comfortable with sending raw transactions.

What do you mean comfortable with sending raw transactions?
Doesn't a multisig address accept coins sent using the normal way?

In Bitcoin core, you need to manually create a raw transaction and sign it. He is talking about it. Newbies can use different client which is multisig-friendly. For example, Armory.

OK, thanks.
I didn't know about that.
So far I am only using Bitcoin Core with standard addresses but I was considering multisig addresses.
i guess I will try Armory then as I don't like too complicated things Wink

Muhammed Zakir

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I prefer Zakir over Muhammed when mentioning me!

Quote from: louise123 on May 14, 2015, 10:50:25 AM

Quote from: coinableS on April 21, 2015, 07:38:18 PM

Quote from: SpanishSoldier on April 21, 2015, 08:40:59 AM

Quote from: coinableS on April 19, 2015, 01:30:21 PM

Quote from: SpanishSoldier on April 19, 2015, 01:11:37 PM

Is it possible to create multisig paper wallet ? If yes, how ?

Yea you can create one manually with bitcoin core in the console, and then save the 3 private keys, and the redeem script to paper. Easy for a typo error though, so I'd probably use a USB thumb drive instead of paper.

From the three private keys, how do I create one bitcoin address ? Does bitcoin core support this feature ?

Yes, you can do it in bitcoin core console.
All you need is the 3 public keys in hex format (i.e. 0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d).

And do the command: createmultisig 2 '["pub_key","pub_key2","pbk_key3"]'

Example to make a 2 of 3 multisig wallet.

Code:

createmultisig 2 '["0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d","03f5c15b4b3045f585fc732d6a31abcf323fc7ee7745e18b9298072e7aa9a33d49","023293a9b92f639b1774d18194ab586cc095bc0eca53c6250fbe608c98ed25430b"]'

Also, don't send any money to a multisig address unless you are comfortable with sending raw transactions.

What do you mean comfortable with sending raw transactions?
Doesn't a multisig address accept coins sent using the normal way?

In Bitcoin core, you need to manually create a raw transaction and sign it. He is talking about it. Newbies can use different client which is multisig-friendly. For example, Armory.

louise123

sr. member

Activity: 462

Merit: 250

Quote from: coinableS on April 21, 2015, 07:38:18 PM

Quote from: SpanishSoldier on April 21, 2015, 08:40:59 AM

Quote from: coinableS on April 19, 2015, 01:30:21 PM

Quote from: SpanishSoldier on April 19, 2015, 01:11:37 PM

Is it possible to create multisig paper wallet ? If yes, how ?

Yea you can create one manually with bitcoin core in the console, and then save the 3 private keys, and the redeem script to paper. Easy for a typo error though, so I'd probably use a USB thumb drive instead of paper.

From the three private keys, how do I create one bitcoin address ? Does bitcoin core support this feature ?

Yes, you can do it in bitcoin core console.
All you need is the 3 public keys in hex format (i.e. 0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d).

And do the command: createmultisig 2 '["pub_key","pub_key2","pbk_key3"]'

Example to make a 2 of 3 multisig wallet.

Code:

createmultisig 2 '["0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d","03f5c15b4b3045f585fc732d6a31abcf323fc7ee7745e18b9298072e7aa9a33d49","023293a9b92f639b1774d18194ab586cc095bc0eca53c6250fbe608c98ed25430b"]'

Also, don't send any money to a multisig address unless you are comfortable with sending raw transactions.

What do you mean comfortable with sending raw transactions?
Doesn't a multisig address accept coins sent using the normal way?

BTC_Superman

newbie

Activity: 42

Merit: 0

No, I do not think this is a right decision to move multisig. I think cold storage is more safer than multisig.

GenTarkin

legendary

Activity: 2450

Merit: 1002

I simply create multiple copies of BIP38 bitcoinpaperwallet.com paper wallets. Put a good password on it, print up copies of the same one and put them everywhere.
Download the source and do it all offline.

ticoti

hero member

Activity: 854

Merit: 1000

If you want to secure your bitcoins get a trezor,but you don't need a multisig,because that does not provide more security to your bitcoins if you are the only owner

coinableS

legendary

Activity: 1442

Merit: 1186

Quote from: SpanishSoldier on April 21, 2015, 08:40:59 AM

Quote from: coinableS on April 19, 2015, 01:30:21 PM

Quote from: SpanishSoldier on April 19, 2015, 01:11:37 PM

Is it possible to create multisig paper wallet ? If yes, how ?

Yea you can create one manually with bitcoin core in the console, and then save the 3 private keys, and the redeem script to paper. Easy for a typo error though, so I'd probably use a USB thumb drive instead of paper.

From the three private keys, how do I create one bitcoin address ? Does bitcoin core support this feature ?

Yes, you can do it in bitcoin core console.
All you need is the 3 public keys in hex format (i.e. 0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d).

And do the command: createmultisig 2 '["pub_key","pub_key2","pbk_key3"]'

Example to make a 2 of 3 multisig wallet.

Code:

createmultisig 2 '["0347f3394ff0a223332b1de34d51c4cd5cd381d390c890b82fbd00af059f22e19d","03f5c15b4b3045f585fc732d6a31abcf323fc7ee7745e18b9298072e7aa9a33d49","023293a9b92f639b1774d18194ab586cc095bc0eca53c6250fbe608c98ed25430b"]'

Also, don't send any money to a multisig address unless you are comfortable with sending raw transactions.

coinableS

legendary

Activity: 1442

Merit: 1186

Quote from: jaberwock on April 21, 2015, 03:25:45 PM

What is the "dice" you refer?

I hope it is not a dice site.

A dice site? Like gambling? Cheesy

Oh no way.
I mean dice like real physical dice.

jaberwock

legendary

Activity: 2660

Merit: 1074

What is the "dice" you refer?

I hope it is not a dice site.

unamis76

legendary

Activity: 1512

Merit: 1012

Quote from: coinableS on April 19, 2015, 03:58:35 PM

Quote from: unamis76 on April 19, 2015, 03:35:12 PM

I currently don't use multisig. The few Bitcoins I have are on paper wallets and on cold storage devices.

When I started saving Bitcoins on cold storage I was still pretty new to all this and saved them on a paper wallet. Later I discovered Armory and I've been using it since.

I've been thinking a lot about multisig in the last few months, but I don't think they would add much more security to the setup I already have. I can either have a split paper backup in many places or the private keys and redeem script to use a multisig address in many places, so there isn't much of a difference. Armory has lockboxes, but I haven't really tried them, as I see no need to use them...

Either there is no advantage in a multisig address on top of cold storage saving, or I'm missing something

If one can physically obtain a split backup, they can also obtain everything they need to spend from a multisig address.

I only see multisig as an advantage on cold storage saving when it comes to having a shared address, just like a shared bank account... Maybe it's really useful in those cases.

That's partially why I'm asking, if I should go multisig.
I was thinking, if someone broke in and found my private keys to a standard address they could figure out how to use them pretty easily, even if they weren't advanced with bitcoin. If someone broke and got my multisig keys and the redeemScript they would have to know how to execute a raw transaction in bitcoin core in order to steal them, so there is that additional level of security that it requires more technical knowledge to use.

The question is, is it worth the extra hassle?

In my opinion it's not, but that's just me. Nobody is Bitcoin knowledgeable around here... Even if they were, it's not easy to physically get what's required to spend my cold storage coins. Summing up, I think a mix of physical protection and minimum security measures in storing private keys digitally that makes cold storage good. Don't get me wrong, multisig is amazing, but for folks like us, storing funds just for ourselves, I don't really see a big need in multisig

StevenS

full member

Activity: 206

Merit: 100

Quote from: BitcoinPenny on April 20, 2015, 03:41:49 PM

Great comic! LOL Grin

For many more comics like that, see xkcd.com.

redsn0w

legendary

Activity: 1778

Merit: 1043

#Free market

Quote from: neurotypical on April 21, 2015, 08:38:14 AM

I've never used a multisig wallet, not even sure what that is.
Does it mean you can create an address, give your address to get paid but once you get paid it automatically creates new addresses? (does this make sense? if that is not multisig then I want to know how to do what I just said).

Not exactly, I suggest you to read here :

- https://en.bitcoin.it/wiki/Address#Multi-signature_addresses

TL;dr :
Addresses can be created that require a combination of multiple private keys. Since these take advantage of newer features, they begin with the newer prefix of 3 instead of the older 1. These can be thought of as the equivalent of writing a check to two parties - "pay to the order of somebody AND somebody else" - where both parties must endorse the check in order to receive the funds.

The actual requirement (number of private keys needed, their corresponding public keys, etc.) that must be satisfied to spend the funds is decided in advance by the person generating this type of address, and once an address is created, the requirement cannot be changed without generating a new address.

Here https://coinb.in/multisig/ you can 'play' a little bit with the creation of multiSig addresses.

SpanishSoldier

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Activity: 728

Merit: 256

Quote from: coinableS on April 19, 2015, 01:30:21 PM

Quote from: SpanishSoldier on April 19, 2015, 01:11:37 PM

Is it possible to create multisig paper wallet ? If yes, how ?

Yea you can create one manually with bitcoin core in the console, and then save the 3 private keys, and the redeem script to paper. Easy for a typo error though, so I'd probably use a USB thumb drive instead of paper.

From the three private keys, how do I create one bitcoin address ? Does bitcoin core support this feature ?

neurotypical

hero member

Activity: 672

Merit: 503

I've never used a multisig wallet, not even sure what that is.
Does it mean you can create an address, give your address to get paid but once you get paid it automatically creates new addresses? (does this make sense? if that is not multisig then I want to know how to do what I just said).

Muhammed Zakir

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Activity: 560

Merit: 509

I prefer Zakir over Muhammed when mentioning me!

Quote from: redsn0w on April 21, 2015, 07:59:26 AM

Quote from: Muhammed Zakir on April 21, 2015, 07:18:29 AM

Quote from: pereira4 on April 21, 2015, 07:12:23 AM

Whats a good way to cold storage the coins that isn't via a hardware wallet? Is the method of going to bitaddress.org, downloading the HTML and creating the wallet with the internet turned off a safe way to do this?

The bolded part is good and safe. Use both mouse and keyboard. When Mycelium Entropy is released, you can give it a try.

P.S. @OP: I recommend multisig address.

Quote from: Troonetpt on April 21, 2015, 07:44:05 AM

I think cold storage is more safe than multisig. All you should do is keep your private key away from online.

What do you think if the coold storage will be created with a multi signature address 2of3? This could increase the security and I am 100% sure Wink

.

If you create it in an offline computer, it will be better. You should make sure a backup is made and nothing is exposed to a third person other who you trust.

redsn0w

legendary

Activity: 1778

Merit: 1043

#Free market

Quote from: Muhammed Zakir on April 21, 2015, 07:18:29 AM

Quote from: pereira4 on April 21, 2015, 07:12:23 AM

Whats a good way to cold storage the coins that isn't via a hardware wallet? Is the method of going to bitaddress.org, downloading the HTML and creating the wallet with the internet turned off a safe way to do this?

The bolded part is good and safe. Use both mouse and keyboard. When Mycelium Entropy is released, you can give it a try.

P.S. @OP: I recommend multisig address.

Quote from: Troonetpt on April 21, 2015, 07:44:05 AM

I think cold storage is more safe than multisig. All you should do is keep your private key away from online.

What do you think if the coold storage will be created with a multi signature address 2of3? This could increase the security and I am 100% sure Wink

.

Troonetpt

sr. member

Activity: 322

Merit: 250

I think cold storage is more safe than multisig. All you should do is keep your private key away from online.

inBitweTrust

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I recommend either multi-sig or Shamir's Secret Sharing where some of the keys are encrypted and digitized and some are secured physically in cold storage. Mixing physical and digital security will dramatically raise the costs of the attacker and only make you vulnerable to multi- million dollar , multi year efforts like Ulbrict and even he didn't secure his coins properly.

Using a clean install of linux/ubuntu with armory wallet on a spare computer and taking the right security precautions is one way to accomplish this.

Another is using mycelium entropy with Shamir's Secret Sharing.

Additionally, it is a good idea to split your BTC between multiple sets of sharded wallets so you don't have to import your whole life savings if you want to dip into your savings.

Here is more info - https://bitcointalksearch.org/topic/options-for-securing-your-bitcoin-wallet-858604

Quote from: Amph on April 21, 2015, 12:59:56 AM

i'm still using the conventional 1 sig address and a usb for cold storage, i don't see the need to move them to a multisig address to be honest, as long as they are off-line encrypted wallet they are safe

Yes, this is sufficient for most people with small balances .. people who own more bitcoin should take extra security steps,.

Muhammed Zakir

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I prefer Zakir over Muhammed when mentioning me!

Quote from: pereira4 on April 21, 2015, 07:12:23 AM

Whats a good way to cold storage the coins that isn't via a hardware wallet? Is the method of going to bitaddress.org, downloading the HTML and creating the wallet with the internet turned off a safe way to do this?

The bolded part is good and safe. Use both mouse and keyboard. When Mycelium Entropy is released, you can give it a try.

P.S. @OP: I recommend multisig address.

pereira4

legendary

Activity: 1610

Merit: 1183

Whats a good way to cold storage the coins that isn't via a hardware wallet? Is the method of going to bitaddress.org, downloading the HTML and creating the wallet with the internet turned off a safe way to do this?

Topic: Should I move my cold storage to multisig? (Read 2562 times)