Multisig
A wallet setup that requires multiple private-key approvals before a crypto transaction can be executed.
Multisig, short for multi-signature, is a wallet or account arrangement where more than one cryptographic signature is required to authorize a transaction. Instead of a single private key being enough to move funds, the wallet follows a rule such as “2 of 3” or “3 of 5,” meaning a set number of approved keys must sign before the transaction is valid. This reduces the risk that one lost or stolen key can drain the wallet.
Multisig is commonly used by crypto teams, DAOs, businesses, and individuals who want stronger custody controls. For example, a company treasury might require any two of three executives to approve a payment, similar to a bank account that needs multiple signers. It can also help with personal security by storing keys in different places or with trusted parties. The tradeoff is added complexity: losing too many keys or setting the rules poorly can make funds difficult or impossible to access.
Other terms in Wallets & Security
Address Poisoning
A wallet scam where attackers plant lookalike addresses in your transaction history so you might copy the wrong recipient later.
Approval Phishing
A scam that tricks users into granting a malicious wallet or smart contract permission to spend tokens from their wallet.
BIP-39
A standard for turning wallet backup data into a human-readable seed phrase, usually 12 or 24 words.
Crypto Wallet
A tool that stores and manages the private keys needed to access and use cryptocurrency on a blockchain.