Litecoin multisig tutorial:
set up a 2-of-3 vault

What is multisig, and why does it matter for Litecoin?

A standard Litecoin wallet has one private key. Lose it, and your coins are gone. Get it stolen, and your coins are gone. A single hardware wallet failure, a house fire, a wrench attack — one event wipes everything.

Multisig (multi-signature) changes this. Instead of one key, a multisig vault has N keys, and M of them must sign before any transaction is valid. An attacker who steals one key gets nothing. A cosigner who loses their device costs you nothing.

Common quorums and when to use each

Step-by-step: creating a 2-of-3 multisig vault

LiteSig supports two ways to build a vault. This guide walks through the default, recommended one — a solo vault, where you hold all three keys yourself and no one else needs an account. If you actually have separate people who should each hold a key, see building a vault with real cosigners below instead.

1

Create your account

Sign up free at app.litesig.com, or start instantly as a testnet guest — no card, no email required to try it.

2

Start a 2-of-3 vault, just for yourself

Go to Create wallet → Multisig vault. Choose your network (testnet to practice, mainnet for real funds), set m = 2, n = 3, and under "Who holds the keys?" pick "Just me: I hold all the keys" — the recommended default.

LiteSig generates all three 12-word BIP39 seed phrases for you, right there in the browser. Key 1 stays encrypted on this device and signs automatically; keys 2 and 3 exist only on paper.

3
Back up all three key phrases
Write all three phrases down on paper, even key 1, which also lives encrypted on this device. Store keys 2 and 3 somewhere separate from each other and from this device — a fire safe, a bank box, a trusted family member's house.
Do not skip this step. These paper phrases are what let you produce a second signature later, and what recovers the vault if this device is lost. No support ticket can recreate them.
4

Set a passphrase and create the vault

Set a strong encryption passphrase (10+ characters, not your account password). It encrypts key 1 locally and is never sent to the server.

Review the vault details and hit Create wallet. LiteSig derives the vault address from all three keys using BIP67 key sorting — the vault is now active.

5

Fund the vault

Open your vault and tap Receive. You'll see the vault's Litecoin address and a QR code. Send LTC to this address from any wallet or exchange.

On testnet, tap Get 0.01 tLTC from the LiteSig faucet right there on the Receive tab — LiteSig funds it for you, no need to hunt down a public faucet. Once the transaction confirms, the balance appears in the vault. Those funds cannot move without 2-of-3 signatures.

6

Propose a transaction

Tap Send, enter the destination address and amount, and confirm. LiteSig builds a PSBT (Partially Signed Bitcoin Transaction) and signs it immediately with your device's key — that's signature 1 of 2, done automatically.

7
Add the second signature yourself
Go to the Pending tab. Paste one of your other two paper-backed key phrases into "Sign with a backup key" and confirm. The phrase is used in your browser only, in memory, and is never stored or sent anywhere.
No one else is involved. Because you hold all three keys, you can produce both required signatures yourself, in one sitting — there's no waiting on a cosigner.
8
Broadcast
Once 2 of 3 signatures are in place, LiteSig shows a Finalize & broadcast button. Tap it and the fully-signed transaction is sent to the Litecoin network directly from your browser. LiteSig's server is not in the broadcast path.
That's it. You just completed a 2-of-3 multisig spend, alone, with no single point of failure left in how your coins are held.

Building a vault with real cosigners

If separate people — a spouse, a business partner, a family member — should each control their own key, choose "Shared: other people hold some keys" instead of solo mode in step 2 above. Here's how that differs:

1

Each cosigner creates a key

Each cosigner opens app.litesig.com/cosigner-key — no account needed — picks the same network and script type as you, writes their 12-word phrase on paper, and confirms a few words from it. The phrase is generated in their browser and never saved anywhere.

2

Cosigners send you their xpub

The page then shows their account xpub — an extended public key starting with Ltub… (mainnet) or ttub… (testnet). They send it to you out of band (Signal, email, in person). An xpub is safe to share: it can't sign transactions or reveal private keys.

3

You create the vault

On the Cosigners step, paste each cosigner's xpub. LiteSig validates them and derives the vault address using BIP67 key sorting.

4

Invite each cosigner to join

Open the vault's Vault tab and create an invite link for each cosigner. Send it privately; it works once and expires in 7 days. The cosigner opens it, signs in or creates a free account, and enters their phrase once — LiteSig checks it's really one of the vault's keys and stores it encrypted on their device.

Sanity check: the join page shows the vault's first receive address. Confirm it matches what you see before they finish joining.

The vault's configuration travels in the link itself, in the part after #, which browsers never send to a server — so LiteSig still never sees your xpubs.

5

Everyone signs from their own account

When anyone proposes a spend, the other cosigners get an email, open the vault's Pending tab, see exactly where the funds are going and the fee, and sign with the key on their own device. Signatures from different people merge as they arrive, and nobody can change the transaction once it's proposed — only add signatures to it.

What LiteSig does and doesn't do

Frequently asked questions

Further reading

Go deeper on specific aspects of Litecoin multisig:

• LiteSig security architecture — how key generation, encryption, and PSBT signing work under the hood
• Litecoin inheritance planning — using a 2-of-3 vault to plan a crypto inheritance without giving up control
• Multisig quorum calculator — find the right m-of-n for your threat model