People want to HODL Bitcoins because they appreciate how powerful these cryptos have become over the past few years. However, while HODLing Bitcoins, one should know which wallet is propitious and which one is not. If you do not bother about the selection, you can lose your Bitcoins. The market is flooded with crypto wallets. Some offer cutting-edge security, while others are moderately secure. Yet, there is another category that is a one-stop solution. This category is of shared Bitcoin wallets or multi-sig wallets. A shared Bitcoin wallet is something you should look for in 2021. It has a close relationship with the security you must hold to deal with hackers attempting to steal cryptos. Below, we will learn about these crypto wallets.
What is a Shared Bitcoin Wallet?
Just as the word ‘shared’ indicates, it is the one you cannot hold personally. A shared Bitcoin wallet has a virtual space split between two or more individuals. Multiple signatures are implemented from numerous individuals who are the owners of that Bitcoin wallet. At present, Bitcoin.com wallet is a top choice in a shared wallet category. This crypto wallet allows you to HODL not only Bitcoins but also its fork, Bitcoin Cash. The idea of multiple signatures comes from the world of cryptography. If we look sincerely at blockchains, they all use cryptographic algorithms to secure data flowing in them. Because both cryptocurrencies and blockchains have a strong link with cryptography, it is apparent that they will implement all the latest and upcoming methodologies practiced with cryptography. Therefore, when we use a shared crypto wallet, we allow a transaction to be approved by multiple keys. Security becomes terrific when we distribute the responsibility to other people. Beyond the individuals, a shared Bitcoin wallet can be utilized by various organizations. In today’s time, we observe several organizations accepting payments in Bitcoins. PayPal, OverStock, Microsoft, Expedia, E-Gifter are the ones taking crypto advantage. Many times, these organizations tie-up with each other to stand out in the crowd. They could use a shared Bitcoin wallet to endure a majority of the cyber threats. Now, let’s look at the steps to create this shared crypto wallet.
Follow These Steps To Create Your Shared Bitcoin Wallet
- First of all, get the Bitcoin.com crypto wallet app. This is available for all the operating systems in smartphones we use today.
- Hit the “+” button on the menu contained in Bitcoin Cash wallets. Doing so creates a new shared wallet for you.
- Now go to the add wallet menu and tap to the ‘create shared wallet” option.
- Fill in the wallet name, no. of signatures needed, no. of co-payers, and your name.
- Lastly, create the wallet and distribute the invitation code to the people you want to join with you.
- The code is in a form that can be copied or scanned.
Benefits of This Shared Wallet
The number one benefit of a shared Bitcoin wallet is that you remain secure most of the time. As the hackers are implementing advanced methods, you must have more than one signature to stay smooth. In case you have lost your smartphone device, the thief could not spend without multiple authorizations from the other parties.
The next benefit is that accounting becomes efficient. The transaction history is available to all the parties involved with the wallet. On the other hand, if you use an individual wallet, you are the one to monitor that long list of transactions. A shared wallet distributes the tasks among the people.
If you are looking for negotiation to resolve differences conducted by some impartial party, you should always use this crypto wallet. This can be helpful when you buy something on the internet or make bets. Especially for making bets, you do not have to worry anymore.
With such a wallet, you get into an environment where voting becomes essential to utilize funds. Two or more organizations can use a shared Bitcoin wallet to keep their massive funds safe from the attackers. Also, an organization can make payments after others have approved them.
If you are looking for the best Bitcoin wallet for android, choose a shared Bitcoin wallet over a personal one. Do not worry if another individual uses it because he or she needs your approval to do so. However, you are also under some restrictions. A personal wallet gives you freedom, but it falls to its knees when hacking attacks surround it. Multiple backups for a shared wallet can be created for the restoration process. You can also change the number of required signatures in case you do not trust more parties. This allows only two signatures while performing transactions. Organizations can use this wallet type to manage their cryptos. A shared wallet is the future of crypto wallets.