TL;DR
Multisig protects you better against theft, a lost backup or a bug at one manufacturer. You pay for that with two extra devices, a weekend of setup and a slightly higher fee each time you spend. For savings you’d hate to lose, it’s worth it. For spending money, one hardware wallet is fine.
| Single hardware wallet | 2-of-3 multisig | |
|---|---|---|
| One seed stolen | Everything gone | Nothing happens |
| Device and seed both lost | Everything gone | Recover with the other two |
| Bug at one manufacturer | Can hit your only key | Hits one of three keys |
| Devices to buy | One | Three |
| Setup time | An hour | A weekend |
| Transaction fees | Normal | Somewhat higher |
| To recover you need | Seed (+ passphrase) | Two seeds + descriptor |
What single-sig gets right
It’s simple, and simple setups have fewer ways to go wrong. One seed on a steel plate in a good place is a solid setup for many people. The weakness is that everything hangs on that one seed: protect it against loss by making copies, and each copy is one more thing a thief can find.
What multisig adds
With multisig you don’t have to choose between having copies and keeping them safe: you can lose one key and still spend, and a thief who finds one key can’t do anything with it. And with three makers, a flaw like the 2026 Coldcard seed problem hits one of your keys instead of all of them.
What it costs
- Three devices instead of one.
- More to back up: three seeds and the descriptor.
- Spending takes two devices and a few extra minutes.
- Transactions are a bit larger, so fees are a bit higher.
- When you spend, anyone looking at the blockchain can see the coins came from a multisig, which suggests there may be more.
What I’d do
Savings in a multisig, spending money in a single hardware wallet. Not sure yet? Read is multisig right for you?.