Too Much Crypto, Not Enough Security: How to Set Up Multisig to Manage Your Assets
Key Takeaways
• Multisig wallets require multiple approvals, adding a layer of protection beyond a single key.
• Ideal for teams, DAOs, and large portfolios—no one person holds full control.
• Security comes from design: use hardware wallets, distribute keys, and set alerts.
• Setup is supported across ecosystems: Safe for Ethereum, Squads for Solana, and Electrum/Sparrow for Bitcoin.
• It’s not just about trust—it’s about resilience. Multisig helps you survive device loss, key leaks, and internal mistakes.
If your crypto portfolio has grown significantly—or if you’re managing shared funds for a team, DAO, or organization—chances are your current wallet setup might not be secure or flexible enough.
This is where Multisignature Wallets (Multisig) come in. Think of them as the crypto-native version of checks and balances.
What Is a Multisig Wallet (and Why Should You Care)?
A multisig wallet requires multiple private keys to approve a transaction. Unlike a standard wallet that relies on a single private key (often tied to a 12-word seed phrase), a multisig setup demands that several designated signers approve actions like sending funds.
You can imagine it like a vault that needs multiple keys to open—adding a powerful layer of protection.
Key benefits of multisig wallets include:
- Stronger Security: Even if one private key is compromised, an attacker cannot move funds without meeting the required signature threshold.
- Shared Control: Funds are no longer controlled by just one person. Ideal for DAOs, foundations, companies, or joint family holdings.
- Customizable Permissions: You can define how many out of how many keys are needed (e.g. 2-of-3, 3-of-5).
- Resilience: If one signer loses access, the system can still function if enough keys remain active.
Multisig is already the gold standard for managing DAO treasuries and large-scale crypto operations—and it’s becoming increasingly popular among individuals with significant holdings.
Before You Begin: Must-Know Security Practices for Multisig Setups
Setting up multisig isn’t just about having multiple wallets. It’s about designing a secure and operational system. Here are the essentials:
1. Alerts & Monitoring
Set up a notification system that can monitor the multisig address. If any suspicious transaction attempts occur, alert relevant parties immediately.
2. Backup Regularly
Each signer’s wallet or private key must be backed up and verified regularly. Loss of even one signer’s device can affect your ability to access funds if you’re close to the signature threshold.
3. Distribute Private Keys
Never store all the keys on the same device or in the same location. Distribute them across different people, devices, and physical places to minimize risk.
4. Use Hardware Wallets
Preferably use hardware wallets (like OneKey or Ledger) for all signer accounts. These devices keep the private key fully offline, drastically reducing the risk of exposure during signing.
Setting Up a Multisig on EVM Chains (Ethereum, L2s, BSC, etc.)
For Ethereum and EVM-compatible networks, the most widely used solution is Safe (formerly Gnosis Safe).
Step 1: Create a Safe
Visit safe.global, click “Create Safe,” name your multisig account, and choose the network (e.g., Ethereum, Base, Arbitrum).
Note: You’ll need to pay a one-time gas fee to deploy the multisig smart contract.
Step 2: Add Signers and Set Threshold
Add the wallet addresses of each signer (ideally hardware wallets), then define the Threshold—how many signatures are required to approve a transaction.
Common configurations include:
- 2-of-3 (balanced security + redundancy)
- 3-of-4 or 3-of-5 (great for organizations or boards)
Step 3: Confirm and Deploy
Once you’ve reviewed the settings, deploy the Safe contract. Safe offers a helpful “Pay Later” option, where the deployment fee is bundled into your first outgoing transaction. Handy!
Setting Up Multisig on Solana: Using Squads Protocol
For the Solana ecosystem, the go-to solution is Squads, which mirrors the experience of Safe on EVM chains.
The steps are almost identical:
- Visit squads.so
- Create a Squad (the multisig account)
- Add signer wallets
- Set the confirmation threshold
- Deploy the contract
Squads offers an excellent user interface and supports team-based asset control natively on Solana.
Setting Up Multisig on Bitcoin
Unlike smart contract platforms, Bitcoin implements multisig at the protocol level, using native script capabilities.
Recommended wallets:
- Electrum – Lightweight, trusted wallet that supports multisig setup with custom thresholds (e.g. 2-of-3, 3-of-5). Ideal for advanced users.
- Sparrow Wallet – Modern interface with QR-based signing, PSBT support, and multisig coordination. Sparrow is actively integrating OneKey hardware wallet support.
To learn more about setting up multisig on Electrum, check out this excellent tutorial by Yishi:
👉 “The Secret Stash of Squirrels”
Final Thoughts: You Don’t Have to Trust Anyone—Not Even Yourself
Multisig isn’t just a feature. It’s a paradigm shift in how we manage digital value.
By setting up a multisig wallet, distributing control among hardware wallets, and applying good operational hygiene, you dramatically increase the resilience of your crypto holdings.
Whether you're running a DAO treasury, managing family office assets, or just want to stop worrying about a single point of failure, multisig is the way forward.
Too much crypto? That’s a good problem—just make sure you’ve got a solid plan to manage it.
Learn more about secure self-custody with OneKey hardware wallets
