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What is a multisig wallet in cryptocurrency trading?

Security in cryptocurrency is a top priority for brokers and even traders.

Designers decentralized control so that third parties—banks and others—wouldn't have the power.

A big part of this is the implementation of multisig wallets.

Many exchanges, including CryptoAltum, use multisig cold wallets. In essence, a multisig wallet will require two or more private keys for transaction signing and confirmation. The owners of these separate private keys are called co-payers.

Why opt for a multisig wallet?

For one, they are considered secure, and there is insurance just in case the account is hacked or a copayer passes on without leaving behind the needed private keys. The internet is, after all, littered with stories of outright theft or cases where the founder dies, causing millions of coins to be locked in the digital ether forever.

Also, multisig wallets are good as they are effective in taming rogue elements within a trusted institution. Regardless of how AWOL they go, they won't access exchange funds without the presence of the other co-payers.

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Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.

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