I keep in cold storage only a little part of my btc.
The rest of them are into multiple paper wallet where I only keep the public and the private addresses.
I made several copies in a cryptographic password manager and gave them to some trusted friends.
I'd like to know what would you change and what are the points of failure that you see in this.
Thank you
What would you change in the way I manage my btc?
byu/Tight_Primary_2546 inBitcoin
Posted by Tight_Primary_2546
4 Comments
I’d start by sending it all to my wallet for safe keeping
Could you explain your paper wallet system in a bit more detail? What exactly do you give your friends? If you’re giving them public/private key combos, you’re spreading your BTC to several possibly unsecured locations. You’re also turning individual custody into shared custody.
No such thing as public or private address. Public and private refers to keys.
Paper wallets are obsolete.
Buy a hardware wallet.
Hard to suggest something when we don’t know your threat modal, or how much corn we’re talking about.
Based on my understanding of what you’ve written, it sounds like a pretty poor setup.
1) Paper is not water/fire resistant. You would need multiple backups to make sure one house fire doesn’t take out a significant portion of your net worth.
2) Sounds like they’re paper wallets are in plain text, so you friends, or anyone they invite to their home could just steal your bitcoin, no?
3) If you increase the number of backups, you also increase the attack surface.
4) You’ve added the keys to a password manager, so that’s another attack surface. You don’t want your keys to touch the internet.
The 2 types of setups I would recommend would be:
a) A simple singe-sig with a passphrase and a hardware wallet. Backed up on steel. I would probably go with multiple steel backups, or something like XOR.
b) 2-3 multi-sig. Not as simple, but I think it solves most of the issues I have with self custody. Still easy to spend/receive and you don’t have the keys at one place, and you have a lot of redundancy. You would basically have 3 hardware wallets and 3 steel backups. When you need to spend you need to sign the transaction with 2 keys. You could give the 2 keys to a friend and a family member, and they could sign for you whenever you need to spend (as an example). They have to collude to take your money, so choosing 2 people that don’t know each other, and not telling them who the other person is, should be fairly safe.