Understanding BitGo Wallets: Secure Digital Asset Storage

At its core, BitGo offers secure multi-signature and MPC wallets by using a 2-of-3 key system for transaction signing across all of our wallets. This means that at least two of the three keys must approve a transaction before it can be broadcast to the blockchain.

When creating BitGo wallets, it is important to understand the different types of wallets and signature schemes, to optimize your wallet setup for your specific use cases.

BitGo’s Wallet Types

Keys

Every BitGo wallet utilizes three distinct keys to ensure your assets are protected, even in the event that one key is compromised or inaccessible.

The key difference between our wallet types is who controls these keys.

Custody vs. Self-Custody

BitGo offers two main categories of wallets, giving you the choice between maximum security managed by us, or maximum control, managed by you.

Custody Wallets (BitGo Managed)

Custody wallets offer the highest level of security and are managed by BitGo. (BitGo refers to one of BitGo’s globally licensed and regulated entities offering qualified custody. Refer here for more information.)

• Security and Key Control: This is the most secure option. Key material is spread across multiple bank-grade physical vaults and divided among different owners, meaning no single person at BitGo controls more than one key. BitGo creates and holds all three keys (User, Backup, and BitGo).

• Transaction Process: While you initiate the transaction, BitGo handles all the signing. For high-security withdrawals, this often includes a video ID verification [link to custody withdrawals page] call with a BitGo Trust operator before the transaction is processed.

• Flexibility: These are considered “cold” wallets (offline and most secure).

Self-Custody Wallets (Client Controlled)

Self-custody wallets provide you with maximum control over your assets.

• Security and Key Control: You create and control the User Key and Backup Key. BitGo creates and holds only the BitGo Key, which is used to confirm transaction signings.

• Transaction Process: You sign the transaction with your User Key, and BitGo co-signs with the BitGo Key to complete the 2-of-3 requirement.

• Flexibility: These wallets come in two forms:

  • Cold Wallets: Keys are stored offline. Offers the most control and privacy, but requires manual steps (like using an Offline Vault Console, or OVC) and is less flexible.

  • Hot Wallets: Keys are stored online. Offers the most flexibility for frequent, programmatic transactions, but is generally less secure than cold storage.

Signature Schemes: Multi-sig vs. MPC

BitGo supports two advanced technologies for implementing the 2-of-3 key signing process:

Important: Both signature schemes offer the same level of security with the 2-of-3 co-signing model. The choice often depends on the specific blockchain asset.

Go Account

In addition to the standard onchain wallets, BitGo offers Go Accounts, cold wallets that are qualified custody that leverages an offchain ledger and use a single key instead of three. Go Accounts are perfect for clients who want to access all of BitGo’s services like trading, financing, and Go Network.

Read more about Go Accounts.