How to Set Up a DIY Bitcoin Multisig Wallet With Nunchuk

This guide shows you how to set up your own multisig wallet using Nunchuk. It's widely considered one of the best options for multisig security. Nunchuk has several paid plans with extra features, but the free version works great for most people.

You can create multisig wallets right from your desktop or mobile app by adding different keys. These can be hot wallets or hardware wallets, and you combine them to make your multisig setup.

👉 Click here to try Nunchuk and take control of your Bitcoin today. Get up to $200 off with an exclusive discount.

Important Disclaimer: Read Before Setting Up Multisig

Multisig wallets are more complex than regular wallets. For a 2-of-3 multisig, if you lose one key but didn't back up that key's extended public key (xpub/zpub), you won't be able to send funds, even with the other two keys.

But Nunchuk makes this simple. You just need to back up:

• All seed phrases
• The wallet configuration file (.bsms), which contains all the extended public keys (XPUBs) from your signers (keys) and the technical details needed to reconstruct your multisig wallet.

To recover: add each signer, import the .bsms file, name your wallet, and sync.

Choosing The Keys

DIY Bitcoin Multisig Wallet Keys Jade TAPSIGNER

First of all, you'll need either a smartphone (iOS or Android) or a computer (Windows, Mac, or Linux). You'll also need at least one supported hardware device. The specific hardware wallets you can use depend on whether you're using the mobile or desktop app.

If you're using Nunchuk on your phone, these hardware wallets (called "signers") work:

• TAPSIGNER
• COLDCARD
• Blockstream Jade
• Portal
• SeedSigner
• Keystone
• Foundation Passport

Some devices only work with the desktop version:

• Ledger (Desktop Only)
• BitBox (Desktop Only)
• Trezor (Desktop Only)

Pick the setup that matches your devices and preferences. The process is pretty straightforward once you have everything ready.

Choosing Your Threshold Signature Scheme

DIY bitcoin multisig wallet with nunchuk

Let's say you use three keys. Requiring all three keys to move funds isn't very secure. If you lose just one, you're locked out completely. That's why the most common setup with 3 keys is 2-of-3. This means you need any 2 keys out of your 3 possible keys to authorize a transaction. It's the sweet spot between security and usability.

What I'll Use In This Example

DIY BTC Multisig With Nunchuk Overview

For this guide, I'll set up a 2-of-3 multisig wallet on Nunchuk's free tier using:

• Hot wallet (iPhone, created by Nunchuk)
• Blockstream Jade (cold wallet - cheap, fully open source hardware wallet)
• TAPSIGNER (cold wallet - NFC card-shaped hardware wallet by Coinkite)

For the difference between an hot and a cold wallet, check our guide:

Bitcoin Cold Storage: How To Protect Your Coins In 2026If you’re looking to safely self-custody your Bitcoin, Bitcoin Cold Storage is a must. This involves using a hardware wallet to move your coins off exchanges and the internet. In this guide, I’ll walk you through how to do it easily and securely.blockdyorAndrea Carnimeo

Video Version

If you prefer watching over reading, I've made a step-by-step video guide that walks you through creating a 2-of-3 wallet with Nunchuk, plus how to receive and send funds. Enjoy:

Prepare The Wallet

Before creating the multisig, you need to set up each wallet:

1. Software Key (Nunchuk) : Generate a software wallet directly in the Nunchuk app. This will be your first key.
2. Blockstream Jade : Initialize the device, write down your seed phrase on paper, and complete the setup so it's ready to sign.
3. TAPSIGNER : No setup needed beforehand. Just prepare a 4-digit PIN you can remember or store securely. You'll need it during the multisig creation.

During this review I will use the Nunchuk app fro. Make sure Nunchuk is installed on your phone and your software key is already created before proceeding.

👉 Click here to try Nunchuk and take control of your Bitcoin today. Get up to $200 off with an exclusive discount.

Add The Keys

The software wallet can be generated directly in Nunchuk. Go to Wallet > Keys > tap "+" and select Software. Save the seed phrase as an independent backup. That's your first key.

Add The Blockstream Jade Step 1Add The Blockstream Jade Step 2

For the second key, I'm adding the Blockstream Jade as an airgapped device since it's easier to manage from a phone. To add it, go to Wallet > Keys > tap "+" and select Blockstream Jade.

Add The Blockstream Jade Step 3Add The Blockstream Jade Step 4

On the Blockstream Jade, unlock it, go to "Options" > "Wallet" > "Export XPUB". A dynamic QR code will appear on the screen.

Add The Blockstream Jade Step 5

In Nunchuk, tap "Continue" > "Scan QR" and scan the Jade's QR code.

Put a name to the key just created, in this case "jade". Tap on "Add key" to finalize the first key.

Add The Blockstream Jade Step 7

If everything goes well, you will see the success message on screen. You can do an health check of the key too, or go forward with the third key we are about to add: the TAPSIGNER.

Add The TAPSIGNER Step 1

So get the TAPSIGNER, click on "Keys" > "+" to add it.

Add The TAPSIGNER Step 2

Select the TAPSIGNER.

Add The TAPSIGNER Step 3

Select "Add Tapsigner via NFC" and tap "Continue".

Add The TAPSIGNER Step 4

Tap the TAPSIGNER on the back of the phone, near where is the NFC chip.

Add The TAPSIGNER Step 5

Add a key name and enter the PIN (that you setup when you initialized your TAPSIGNER). Remember to always save this pin in a safe place, on paper or metal.

Add The TAPSIGNER Step 6

Scan the NFC of the TAPSIGNER again.

Add The TAPSIGNER Step 7

All the keys have now been successfully added. It's not time to create the wallet with these three keys.

Create The Multisig Wallet

Keys are ready, so we can now create the wallet itself. Go back to the Nunchuk wallet home and tap the "+" button.

Create The Multisig Wallet Step 1

Select "Custom Wallet".

Create The Multisig Wallet Step 2

Put a Wallet name and address type and hit "Continue".

Create The Multisig Wallet Step 3

Now you need to assign the keys you just generated. Select all three of them and set "Required" keys to "2" since this is a 2-of-3 multisig setup. Click "Continue" when you're done.

Create The Multisig Wallet Step 4

Review the wallet and then tap on "Create wallet". The wallet is now created.

Backup The Wallet Configuration

Backup The Wallet Configuration Step 1

After creating the wallet, immediately back up the Wallet Configuration. You'll see a prompt at the top reminding you to do this. Tap on it. It's a BSMS file that contains your wallet information (not private keys) and lets you recover the wallet easily since it follows a standardized BIP format.

Backup The Wallet Configuration Step 2

Tap on "Save BSMS file" and store the file in a safe location.

Receive Funds

Receive Funds Step 1

Now that your wallet is created and backed up, you can send your first funds to it. The receiving address appears on the home screen if you haven't received anything yet. Or go to Home > Wallet > Receive to display the QR code or copy the address.

Send Funds

Send Funds Step 1

Once you've received the funds, this will be shown in the main wallet view. So you will also be able to send funds. Click on "Send" to get started.

Send Funds Step 2

Send all or select the amount, then hit on "Continue".

Send Funds Step 3

Scan or paste the address. Remember to verify it.

Send Funds Step 4

Now it's time to sign. Choose 2 out of your 3 available signers. You'll need them physically, so get them ready. For example, have your TAPSIGNER PIN ready and unlock your Jade.

Sign From The Jade (1 of 3)

Sign From The Jade Step 1

Signing from the Jade in an airgapped way it's quite simple as, from the Jade, you select Scan QR and from Nunchuk you select export transaction. Then from the Jade you scan the QR on Nunchuk.

Sign From The Jade Step 2

Sign and send the transaction from the Jade, the Jade will then show a dynamic QR Code. Then click on Import signature > Import via QR on Nunchuk.

Sign From The Jade Step 3

Sign From The TAPSIGNER (2 of 3)

Sign From The TAPSIGNER Step 1

The first signature has been done. Now it's time for the TAPSIGNER, click on the "Sign" on the right of the TAPSIGNER.

Sign From The TAPSIGNER Step 2

Enter the PIN of your SATSCARD.

Sign From The TAPSIGNER Step 3

Tap the SATSCARD on the back of your phone, near the NFC chip.

Broadcast Transaction

Broadcast Transaction

After reaching the quorum (meaning 2 out of 3 signers have signed), you can now broadcast the transaction. Click "Broadcast Transaction" to send the funds.

Broadcast Transaction Step 2

On the Nunchuk screen will appear a green banner "The transaction has been broadcast", meaning that the BTC sent are now in the mempool and will be confirmed in the next blocks.

Bottom Line

Setting up a DIY multisig wallet with Nunchuk gives you serious security without the complexity. A 2-of-3 setup means you're protected if one key is lost or compromised, while still maintaining full control of your Bitcoin.

Remember to back up all your seed phrases separately and save that wallet configuration file (.bsms) in multiple secure locations.

Test everything on testnet first, make sure you can restore from backups, and only then move real funds. Multisig isn't for everyone, but if you're holding significant Bitcoin, it's one of the best ways to sleep soundly at night. Take your time, follow each step carefully, and you'll have bank-level security in your own hands.

👉 Click here to try Nunchuk and take control of your Bitcoin today. Get up to $200 off with an exclusive discount.

Frequently Asked Questions (FAQ)

What is a multisig wallet?

A multisig (multi-signature) wallet requires multiple keys to authorize a Bitcoin transaction. For example, a 2-of-3 multisig needs any 2 out of 3 keys to spend funds, providing better security than a single-key wallet.

Why use Nunchuk for multisig?

Nunchuk simplifies multisig setup with an intuitive interface and free tier options. It supports various hardware wallets, handles complex XPUB management through .bsms files, and works on iOS, Android, and desktop platforms.

What do I need to backup for a multisig wallet?

You need to back up all seed phrases from each signer and the wallet configuration file (.bsms). The .bsms file contains all extended public keys (XPUBs) needed to reconstruct your wallet. Store these in separate, secure locations.

Do I need three separate hardware wallets for 2-of-3 multisig?

No. You can combine different types of signers. A common setup uses one hot wallet (software key) and two hardware wallets, or any combination that fits your security needs and budget.

What happens if I lose one key in a 2-of-3 setup?

You can still access and spend your Bitcoin using the other 2 keys. However, you should immediately create a new multisig wallet and transfer your funds to restore full redundancy, as you no longer have a backup key.

Is multisig necessary for small amounts of Bitcoin?

Multisig might be overkill for small amounts. For most users, a single hardware wallet with a strong passphrase provides excellent security. Multisig is better suited for life-changing amounts of Bitcoin where the added complexity is worth it.

What is a .bsms file?

A .bsms (Bitcoin Secure Multisig Setup) file is the wallet configuration file that contains all extended public keys (XPUBs) from your signers and technical details needed to reconstruct your multisig wallet. It's defined in BIP-129.

Should I test the setup before using real Bitcoin?

Absolutely. Always test your multisig setup on testnet first. Practice creating the wallet, receiving funds, sending transactions, and most importantly, restoring from backups before moving any real Bitcoin.

Can someone steal my Bitcoin if they get my .bsms file?

No. The .bsms file only contains public keys, not private keys. However, anyone with this file can see your entire transaction history and balance, compromising your privacy. Store it securely and don't upload it to cloud storage.

What hardware wallets work with Nunchuk?

Nunchuk supports TAPSIGNER, COLDCARD, Blockstream Jade, Portal, SeedSigner, Keystone, and Foundation Passport on mobile. Desktop versions also support Ledger, BitBox, and Trezor devices.