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Handbook Cover Page
Crypto Terms: Letter C

What is Co-Signer?

Co-Signer MEANING:
Co-Signer - is an extra individual who has some authority over a cryptocurrency wallet.
Easy
1 minute

Let's find out Co-Signer meaning, definition in crypto, what is Co-Signer, and all other detailed facts.

If a co-signer has control over a wallet, it is called a "Multi-Signature Wallet", and its co-signer will have a private key that is required to sign a transaction so the funds could move from the wallet.

Besides, multi-signature wallets are considered to be a more safe modification of a cryptocurrency wallet. That is because several institutions or people are needed to offer their own unique keys prior to enabling access to the stored money. But in some cases, these wallets might lack protection.

To configure these signature requirements you could need two out of a total of three keys to unlock the funds. The keepers of these keys are the co-signers.

Speaking of businesses, reserving a big amount of the organization's cryptocurrency funds on a single-signature wallet would put them at risk of getting their savings stolen. Keeping that in mind, if access to a wallet is permitted only after multiple co-signers provide their keys, it precludes the funds from getting stolen or misused by any staff member.

To release cryptocurrency funds, it might be necessary for it to be co-signed, in some cases. The most employed way is the basic security increase of a personal wallet by using a multi-signature wallet and gathering the signatures needed to access it on multiple devices. 

As a result, individual users can safeguard themselves from one or more of the keys being lost or stolen.
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