Assistance in Using Trezor to Set Up a Multi-Signature Wallet for Increased Security

Hello Everyone :hugs:,

For added protection, I want to use my Trezor to set up a multi-signature wallet, however I could use some advice from experts. I am somewhat knowledgeable about multi-sig and its advantages in terms of shielding money from a single point of failure. I’m not entirely sure how to set this up with Trezor and other compatible wallets, though.

My research indicates that in order to completely activate and maintain a multi-signature arrangement with Trezor, I might need to use an external wallet interface, such as Electrum or Sparrow Wallet. Does anyone know if this is true? Which wallet interface, in terms of usability, compatibility, and security, would you suggest? :thinking:

Additionally, I want to know if it’s feasible to build up a multi-signature system that allows me to use a variety of hardware wallets (such as Trezor with Ledger, for example). Does anyone know anything about this kind of setup? Are there any obstacles or security issues I should be mindful of if I choose this path? :thinking:

Finally, any general guidance on best practices would be greatly appreciated. For instance, is it safer to store the Trezor devices in the same place or should I keep them apart? I would appreciate any advice on how to safely store several keys or how to backup the multi-signature wallet recovery procedure.

Thanks in advance for your help and support.

Hi @xoyivi2349,

First of all I strongly recommend watching this video from Andreas M. Antonopoulos about the benefits and risks of using a multi-signature wallet. As he states in the video, the most important guidance is ensuring you have backups of all your multisig wallet’s public keys in addition to your recovery seeds (wallet private key backups).

Yes, you need to use a third party application to create a multi-signature wallet with Trezor. Electrum and Sparrow both provide good interfaces for creating a Bitcoin multi-signature wallet.

Yes, multisignature wallet setups can generally be done with multiple forms of key storage including by mixing hardware wallets from multiple manufacturers and/or software wallets if you wish to really vary your key storage.

In terms of storage my understanding is that most people and corporations use multi-sig with the intention of having keys in multiple locations or with multiple individuals authorized to sign transactions on the wallet.

If you have never set up a Trezor wallet in Trezor Suite, maybe consider purchasing a one-on-one Trezor Expert session, where I or one of my colleagues will help you set up your Trezor correctly and gain the knowledge and confidence needed to protect your bitcoin effectively.