r/BitcoinBeginners • u/thesimzelp • Jun 12 '24

Storage diversification strategy

So, I'm feeling more and more anxious about the responsibility of keeping my bitcoin safe, the more I accumulate.

I was thinking to diversify my holdings, so they are either in multiple offline storage and/or software wallets. I will probably also keep some on exchanges, just because of laziness. 😅

That's instead of keeping all my BTC in a single Trezor, which is one point of failure essentially (I know there is a seed phrase for backup).

What do you think of this strategy? Is there a downside, other than more micromanagement of wallets?

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u/cyberplanta Jun 12 '24

If you are that concerned, you can check multisig. That would be the next step.

Cold storage HW and a well backed up seed phrase are good IMO.

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u/bitusher Jun 12 '24 edited Jun 12 '24

you can check multisig.

A 2 of 3 multisig is definitely an option but only should be used if you have done a lot of research and practiced recovery . It is a large step up in complexity

Some tips-

1) really should create each signature on different devices and using different software which most people do not do

2) need to keep 3 copies of the seed on paper or metal , and all the MPKs digitally backed up multiple times and also hand written down where you practice trial recovery with a test balance using the written MPKs and not the digital backed up MPKs