Securing a holding large enough to matter

Past a certain amount, the threat model changes. It stops being about phishing and starts being about you.

When single signature stops being enough

One seed phrase means one point of failure: fire, flood, theft, coercion or your own memory. Above an amount you would call life changing, move to a setup where no single event loses everything.

Multisig, done properly

• Require several keys to approve, for example two of three or three of five.
• Store keys in genuinely separate places, ideally different buildings.
• Use hardware wallets as signers where the amount justifies it.
• Test recovery with a small amount before trusting it.
• Document the setup for whoever will need it.

Physical safety

The Ledger customer data breach in 2020 exposed names, addresses and phone numbers, and some of those people were subsequently threatened in person. If you are publicly associated with holding crypto, that is a real consideration.

• Do not discuss holdings publicly or post about gains.
• Use a passphrase to create a decoy wallet holding a small amount.
• Do not have hardware wallets delivered to a home address if you can avoid it.
• Be careful what a delivery driver or a repair technician can see.

The inheritance problem

If you were hit by a bus tomorrow, could anyone recover this? For most holders the honest answer is no, and the funds are simply gone. This is a solved problem and almost nobody solves it.

1. Write down what exists and roughly where, without putting keys in that document.
2. Store the instructions with a solicitor, or in a sealed document with your will.
3. Consider a multisig where a trusted person holds one key that is useless alone.
4. Tell at least one person that crypto exists and that instructions exist. They cannot look for something they do not know about.
5. Review it annually, because wallets and devices change.

Common questions

What happens to my crypto when I die?

Without a documented recovery path it is permanently lost. No exchange, court or family member can recover a seed phrase nobody knows about. Write instructions that do not themselves contain the keys.

Is multisig worth the complexity?

Above an amount whose loss would genuinely change your life, yes. Below that, a properly stored hardware wallet is usually the right balance.