Part 2, Spend from Multisig Wallets – Generate Bitcoin payment
This is part two of our series on multi signature addresses and wallets. This is important technology for massively improving bitcoin security. In part one we generated a multisig address / wallet. In this part, we’ll walk you through all the steps necessary to spend the funds.
Courtesy World Bitcoin Network
In many ways, multisig addresses are the answer to most of bitcoin’s concerns and fears of theft. And now its time to scale up massive implementation for them. Originally introduced into the bitcoin client a few years ago, multi signature addresses are massively more secure than regular ones. Their adoption by all wallet manufacturers are in progress.
Part 1, Generating a Multisig Address – What are Multisig Wallets
Bitcoin is now in that ‘second phase’ where security is becoming very important. Originally introduced into the bitcoin client a few years ago, multisignature addresses are massively more secure than regular ones.
Courtesy World Bitcoin Network
Their adoption by all wallet manufacturers is coming.
In many ways, multisig addresses are the answer to most of bitcoin’s concerns and fears of theft. And now its time to implement them.
A paper wallet is one of bitcoiner’s best security practices. In this article we will provide a brief overview about its main advantages and important points to care about before starting to invest in the crypto currency.
> What is a Paper Wallet? The Basics
Bitcoin paper wallet generated at bitaddress.org
Also referred as Cold Storage, a paper wallet is a way to store bitcoins as a physical offline document that can be handled as any other real-world materialized currency or value. The main purpose of the paper wallet it to take your private key out of any online record by printing it onto paper.
Once done, bitcoins on a live wallet (web based or software client) can be sent to the public address printed on your paper wallet document for safekeeping.
> Paper Wallet Advantages
As of its advantages, bitcoin paper wallets offer:
(1) A high level of protection against software that might be compromising your computer, like malwares and keyloggers, and of course, against hackers!
(2) The security of possessing your bitcoins on paper, as we are used to deal with cash, although it means that mobility might be an issue at certain point and you need to take other kind of previsions to keep the document in shape.
(3) No dependence on a third party wallet service provider.
(4) Risk reduced by not having to rely only on the security standards applied by a website.
> Points to Care About with Paper Wallets
– Make sure you create a strong and complex enough passphrase when creating your brain wallet on websites like bitaddress.org
– Be aware that the paper contains all the data needed to check your bitcoin balance and import it or spend it, so choose the right place to store it. Also protect it from humidity and other things that could damage it. Losing a single character of any of your 2 keys could become a big issue to recover your assets.
– Before transferring your bitcoins to your paper wallet, make sure you verify it by checking it on alternative sites to bitaddress.org. If the same info comes up, it means everything is ok. Check it on at least 3 more sites.
Hope you found this helpful. On the next article about wallets we will go deeper into how to generate safe paper wallets.
Bitcoin wallets are the key tool to start using the digital currency. Read this straight forward overview about (1) types of wallets, (2) best wallet services and (3) basic tips to better manage your wallet.
Equipment for money transfer. Caricature by O. Schmerling in 1906.
> First of all, What is a Bitcoin Wallet?
A bitcoin wallet it’s like your physical wallet or your bank account (without all the paper work) but for the BTC network. It allows you to store, manage and control your transactions. Once created, the wallet generates two keys, one public, and one private. The public key or “address” is used to receive payments (or donations), and send payments. The private key (composed of fifty-one alphanumeric characters, starting with “5”) guarantees that you have the right to use the bitcoins in that wallet. Important: never reveal this piece of data!
> Types of Bitcoin Wallets
There are two types: software and web wallets. Software wallets can be installed on your own computer or mobile device, providing you with a certain level of autonomy since you are the only responsible of keeping it safe. On the other hand, web wallets are hosted by a third party company. In this case you need to trust that they are doing their homework at keeping high security standards to protect users’ assets.
The tools mentioned above are supposed to provide a high level of security, which is recommended for investors adopting the usage of the digital currency. Learn how bitcoin transactions work (internal link) here!
> Recommendations for New Bitcoiners
Creating your first wallet is fairly easy and fast. Here are some key points that you should consider upfront:
1- Choose a password that contains letters, numbers, and symbols (#, %, $, @) to make it as strong as possible.
2- Don’t keep your private key and password data saved on any document on your computer, email client or web based third party apps you may use.
3- Web wallets are more vulnerable to attacks. We recommend a software wallet.
4- Create more than one address to manage your transactions and have specific purposes for each, say “Investments”, “Shopping”, “Savings”.
5- Learn more about how to generate a paper wallet to better protect your assets.
