James Hong Explains Why BitGo Multi-Signature Wallets Are Most Secure

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In an easy-to-read article, serial entrepreneur and investor James Hong discusses the best way to store Bitcoin.

His conclusion: BitGo.

Most Bitcoin wallets use a single key. Desktop software wallets keep that key in a file, while hosted or cloud wallets store it on a server. This creates a single point of failure risk. If the key is stolen, lost or corrupted, your money is gone.

BitGo has changed the security paradigm and created a multi-signature wallet.

“I think of this as being a bit like movies where nuclear missile systems often require two separate and different keys to launch nuclear missiles,” writes Hong. “If you only have one key, it’s worthless.”

BitGo Secure Wallet

BitGo creates 3 keys in a secure manner, and you need 2 of them to unlock funds or send Bitcoin. One key is kept with BitGo, one controlled by the user, and a third held offline as a backup key.

This allows you to have the convenience of a hosted wallet and the close to the security of cold storage.

Read Hong’s article on Medium and related discussion on Reddit. Visit BitGo.com to create your own secure wallet.

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2 Responses to James Hong Explains Why BitGo Multi-Signature Wallets Are Most Secure

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