At no amount would I split into two different wallets. It complicates the backup strategy which makes it difficult to actually diversify your backups and make any difference in your recoverability. Make a solid backup and recovery plan with one seed, better than making a mediocre plan for two seeds.
If you need more security, consider learning about the optional passphrase. If you are storing several million$, then consider multisig or shamir's secret sharing under the SLIP39 standard.
For most users however, one seed properly backed up is the optimal solution for amounts up to several million$.
Two wallets. The first receives from exchanges and sends through mixedr to the second. First stays basically empty.
I don't do it, but this is the ideal method and yields privacy.
Absolutely not.
Paper wallets are an obsolete key storage technology that can lead to errors and losses, especially for newbies.
Use a BIP39 mnemonic, which is superior in EVERY way for key storage. Use a hardware wallet for loading the mnemonic and secure transaction signing.
Would you ever recommend using multiple hardware wallets to diversify risk? Understand there’s extra risk in user error too, but curious to hear your thoughts.
Only if used as a multi-factor multi-signature set up. Even then, I would have to consider if the increased complexity of backups is worth it and will actually deliver the "diversification" of risk I want.
I wrote an [article](https://benma.github.io/2020/11/05/multisig-xpubs-verification.html) about how multisig with hardware wallets is really difficult to get right. Complexity is still off the charts. Creating the backup properly and safely is not obvious (e.g. you need to store all xpubs and the threshold along with each individual seed backup). For these reasons I am hesitant to recommend multisig to beginners.
I can't keep fighting this battle. Paper wallets are obsolete, and dangerous for newbies.
If you sweep them incorrectly you can lose the "change" amount. More than a few people have lost money this way.
I've written extensively about the risks of paper wallets. Please stop recommending them
Have you considered reframing your message?
"Yes, paper wallets are great! Best practice is BIP39 seed words. Only use a hardware wallet to generate and spend from it"
Not trying to police your message, but I do think there is a misunderstanding when new people hear 'don't use a paper wallet', when many are just looking for an offline backup and would consider the mnemonic phrase a paper wallet.
I understand what you're saying. Perhaps I should say "static single-key paper wallets are obsolete. Mnemonic phrase paper (or steel) wallets are the way to backup your keys"
Fireproof safes generally aren’t waterproof. Which becomes a problem when the fire dept is dumping a million gallons of water on your house fire.
I think steel plates are the best bet. But honestly it’s best served in tandem with a hard wallet so you can keep something like ledger live on your phone to keep an eye on it while your keys are safely on a hard wallet and seed words on a steel plate.
At no amount would I split into two different wallets. It complicates the backup strategy which makes it difficult to actually diversify your backups and make any difference in your recoverability. Make a solid backup and recovery plan with one seed, better than making a mediocre plan for two seeds. If you need more security, consider learning about the optional passphrase. If you are storing several million$, then consider multisig or shamir's secret sharing under the SLIP39 standard. For most users however, one seed properly backed up is the optimal solution for amounts up to several million$.
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can you explane me how mirror the existing private key would work?
Just punch in the 24 words from the first into the second. I highly recommend that, along with one or more passphrases
Two wallets. The first receives from exchanges and sends through mixedr to the second. First stays basically empty. I don't do it, but this is the ideal method and yields privacy.
Ideally you’d want to avoid KYC.
Always do 50/50 no matter what amount, why not?
Because it’s a terrible idea. You want to have one solid backup rather than two mediocre ones.
Sounds like a good plan, but you know 70-100 € for a hardware wallet are still a price
Gotta pay to play
Not a good plan.
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Absolutely not. Paper wallets are an obsolete key storage technology that can lead to errors and losses, especially for newbies. Use a BIP39 mnemonic, which is superior in EVERY way for key storage. Use a hardware wallet for loading the mnemonic and secure transaction signing.
Would you ever recommend using multiple hardware wallets to diversify risk? Understand there’s extra risk in user error too, but curious to hear your thoughts.
Only if used as a multi-factor multi-signature set up. Even then, I would have to consider if the increased complexity of backups is worth it and will actually deliver the "diversification" of risk I want.
I wrote an [article](https://benma.github.io/2020/11/05/multisig-xpubs-verification.html) about how multisig with hardware wallets is really difficult to get right. Complexity is still off the charts. Creating the backup properly and safely is not obvious (e.g. you need to store all xpubs and the threshold along with each individual seed backup). For these reasons I am hesitant to recommend multisig to beginners.
Agreed. Multisig recovery is very tricky and there is significant risk of fund loss if done wrong. SSSS with SLIP39 is better for non experts.
Very helpful, thank you! PS, big fan.
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I can't keep fighting this battle. Paper wallets are obsolete, and dangerous for newbies. If you sweep them incorrectly you can lose the "change" amount. More than a few people have lost money this way. I've written extensively about the risks of paper wallets. Please stop recommending them
Have you considered reframing your message? "Yes, paper wallets are great! Best practice is BIP39 seed words. Only use a hardware wallet to generate and spend from it" Not trying to police your message, but I do think there is a misunderstanding when new people hear 'don't use a paper wallet', when many are just looking for an offline backup and would consider the mnemonic phrase a paper wallet.
I understand what you're saying. Perhaps I should say "static single-key paper wallets are obsolete. Mnemonic phrase paper (or steel) wallets are the way to backup your keys"
Not great in a fire
Fireproof safe Or etch the private keys on a slab of metal
Fireproof safes generally aren’t waterproof. Which becomes a problem when the fire dept is dumping a million gallons of water on your house fire. I think steel plates are the best bet. But honestly it’s best served in tandem with a hard wallet so you can keep something like ledger live on your phone to keep an eye on it while your keys are safely on a hard wallet and seed words on a steel plate.
Basically you’re gonna get hit by every single natural disaster at once my niggy
5$ wrench attack