Managing Multiple Crypto Wallets with Vault12 Guard

Why Manage Multiple Crypto Wallets

There are several advantages to multiple wallets, including risk management and organization. You might own multiple wallets in order to:

• Organize your crypto based on different transaction tracking needs: you might choose to separate high-privacy transactions from low-privacy ones, or individual wallets for unique NFT collections.
• Limit the maximum value of each wallet to reduce risk.
• Invest across different blockchains such as NFTs that are built on different blockchains and not supported by the same wallet.
• Maintain separatehot wallets and cold wallets which might be both custodial and self-custody types.
• Try new wallets to explore new features.
• Duress/Dummy wallets for use when criminals try to hijack your crypto or even worse, attempt a “$5 Wrench Attack.”

Challenges of Multiple Crypto Wallets

Keep in mind the following before making the decision to use multiple wallets:

• Need to make sure that you can recover each and every wallet. You must have a backup for everything - otherwise your assets can easily be lost.
• Remember to record every seed phrase so you can access all wallets in the future.
• You must practice good Key Management - or else you could forget or lose access to your wallet seed phrases.
• You could forget that you even have some wallets in your inventory. To avoid this risk, keep your wallet inventory up to date.
• It is complicated to communicate information about multiple wallets to beneficiaries, especially keeping access private until the time comes to transfer that knowledge.
• For inheritance, your assets must be backed up and documented to pass on properly.

How Vault12 Guard Simplifies Multi-Wallet Management

What's needed is an integrated backup and inheritance solution, so that everything is backed up, recoverable, and can be passed on. Vault12 does all of this - it gives you the ability to generate, back up, and restore seed phrases. It’s easy to use for the person setting up the Digital Vault, the Guardians protecting it, and the beneficiary receiving the inheritance.

With multiple wallets, inheritance can become complex. Vault12 Guard simplifies this process, so you can designate the right beneficiary and Guardians, and the transition of assets after your passing is seamless. Keep in mind the following goals:

1. Creating an inventory of multiple wallets with associated seed phrases and passphrases.
2. Designating a technical beneficiary who can manage assets in the event of your passing or incapacitation.
3. Providing a simple and easy-to-use process both for the crypto asset owner and the beneficiary.
4. Being independent of the legal process in any jurisdiction, but part of the overall trust and estate plan.

Managing Multiple Crypto Wallets with Vault12 Guard

The process to set up multiple wallets in Vault12 Guard couldn’t be easier.

Vault12 can optionally be used to generate seed phrases which can be imported into your wallets and stored in your Digital Vault for easy organization.

Whether you used Vault12 Guard to generate your seed phrases or some other method, Vault12 Guard can back up your seed phrases as described in step-by-step detail with screenshots in this guide, “Back up your Recovery Phrase or add an asset using Vault12.”

Do this for each wallet and you’re all set. Now everything is in one place and you can rest easy – Vault12 Guard is ready to distribute the encrypted backup of your assets to all of your Guardians.

When you need to restore your Digital Vault (whether it holds one or multiple wallets) follow the simple steps to restore your Vault. In the case of inheritance, your Digital Vault beneficiary will use the Vault12 Guard app to request and receive approval from your chosen Guardians to access your Digital Vault’s inventory of wallets.

Once set up, Vault12 Guard offers you peace of mind and the confidence of knowing that your assets are secure, organized, and ready to pass on.