Protect Your Online Bitcoin Transactions Using a Multisig Escrow Wallet | BitCoin trends news


There are many ways to create a multisig wallet. In fact, most Bitcoin clients support the multisig protocol. Electrum and Armoury are used by many crypto holders because they have provisions for advanced settings like custom fees etc. which are great for power users.  BitGo is another popular option for those who prefer a web-based client. In my opinion, however, CoPay offers the most streamlined, easy to use interface, that is usable by anyone, even a new Bitcoin user. So for the purposes of this tutorial, I will be using

Step 1: Download CoPay

Head over to the CoPay website and download the appropriate installer for your platform. A great advantage of using CoPay is its support for nearly all desktop and mobile platforms (iOS and Android included).

Step 2: Start by setting up your personal wallet

Open the installed app, and run through the quick setup to create your personal wallet. This will involve typing in an email address for transaction notifications, and noting down a mnemonic phrase that can be used as a backup in case CoPay is accidentally deleted from your computer.

The first few screens will help you create your CoPay Personal Wallet.

Step 3: Create a Shared Wallet

Multisig wallets are called ‘Shared Wallets’ in CoPay. Once your personal wallet is set up, click on the shared wallet option on the CoPay home screen to create a multisig wallet. You will be presented with a screen where you can configure the wallet with the number of co-payers, the number of signatures required etc. depending on your needs.

You can customize your CoPay Wallet based on your needs.

Step 4: Share the CoPay invite with others

The last step is to share your multisig wallet with the 2 other parties. Send them the CoPay code displayed or ask them to scan the QR code. That’s it! Your CoPay escrow is set up! Now everytime someone requests a payment, you will receive a notification to confirm the transaction.

Have you ever used a multisig wallet before? What additional steps do you take to protect your bitcoin transactions? Let us know in the comments below.

Images courtesy of CoPay, Shutterstock

SOURCE: http://bitcoinist.com/protect-your-online-bitcoin-transactions-using-a-multisig-escrow-wallet/

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