Multisig Wallet Best Practices

Multisig increases security by eliminating single points of failure. "If a hacker gets access to just one device or private key, they still can’t move your funds."

Multisig is not a substitute for proper seed phrase backup. "If your hardware wallet is compromised, your entire setup will be compromised."

Consider multisig for significant holdings or shared control. "the recovery of a non-custodial 2/3 multisig wallet, what are the minimum pieces of secrets needed for recovery? I read that 2 seed phrases are enough to sign a spend transaction, but having those 2 only are not enough to recover your multisig wallet. What"

Backup all private seed phrases and all cosigners' XPUBs. "if you are using multi-sig with "2 of 3" or "3 of 5", every time you need to have the multiple devices on hand PLUS their respective passphrases correctly entered to unlock"

Store your multisig wallet descriptor. "Ideally your multisig wallet descriptor (wallets like Specter can export this as a .PDF for you) - essentially your multisig derivation path + all of the cosigners' XPUBs."

Never store private seed phrases digitally or online. "Never upload your private 12-24 word mnemonics to the cloud or even type them into your PC/phone password manager or email or photo roll."

Distribute keys geographically and across multiple hardware vendors. "of this setup!? Also regarding the recovery of a non-custodial 2/3 multisig wallet, what are the minimum pieces of secrets needed for recovery? I read that 2 seed phrases are enough to sign a spend transaction, but having those 2 only are not enough to recover your multisig wallet. What else does one need as a minimum requirement to recovery? Please point me to a"

Test your multisig setup thoroughly. "Once a wallet is set up, do a test transaction back and forth, delete all wallets and try recovering it again to complete cycle."

Avoid using a passphrase with multisig to prevent over-complication. "Personally I wouldn't use a passphrase in addition to a 2-3 multisig."

You don't need all devices present to sign a transaction. "You can have one device at home, create a transaction and sign it. Then take that PSBP (partially signed bitcoin transaction), which is just a file, to the location of the second device, and sign it again."

Be aware of increased transaction fees for multisig. "Multisig transactions have more fees as well."

Understand that "swapping" a key usually means creating a new multisig wallet. "Some wallet software shows a 'swap' option that makes it look like you can add a new signer into an existing multisig but it will create a brand new wallet, it won't just 'swap' a key in your existing wallet."