What Is the Difference Between Singlesig and Multisig accounts?
Security is a core responsibility when Bitcoin is concerned. With the increasing institutional adoption of digital assets, a secure way to store funds is needed. There are two main types of accounts: Singlesig and Multisig accounts. Singlesig Accounts are simpler and controlled by one person, while Multisig Accounts provide added security through multiple signatures.
This is the most common type of account, and it is ideal for users that want to have full control and autonomy over their Bitcoin. When using a Singlesig Account, the user will receive a Private Key. When moving funds, the Private Key is required to confirm (also known as “sign”) a transaction.
A Multisig Account comes from the term “multi-signature”. It is an account that uses multiple signatures to sign (and therefore authorise) a transaction through the use of at least two Private Keys. When opening a Self-Custody account, the account holder will receive a Private Key and then will be asked to invite two other people via email to join as co-signers. Each invited person will also receive a Private Key. When one of the users in this account wants to transfer funds, the other two users will be asked to co-sign a transaction. The first one to co-sign will confirm the transaction. This type of account is ideal for institutional investors or family offices, but it is also very useful for users that are looking for an additional layer of security.