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.