Multi-signature wallets provide additional security of your crypto holdings by requiring more than one private key to authorize transactions. This added layer of security makes it much more difficult for hackers to steal your funds, particularly useful for companies and groups of traders sharing the same funds. It only applies to funds kept outside of exchanges, as they don’t support multi-sig wallets.

Benefits:

• Stronger security: Your funds remain safe even if one key is compromised.
• Shared access: Ideal for groups like families or businesses where multiple people need access.
• Reduced theft risk: A single stolen key is insufficient to access your funds.

However, managing multiple keys can be challenging, and losing a key might complicate fund recovery. When used correctly, multisig wallets provide excellent protection for your crypto assets. Along with 2FA / MFA, it’s extra layers of security!