Quote from: SquirrelJulietGarden on Today at 03:35:16 PM

Quote from: john_egbert on Today at 02:33:44 PM

Diversification of the funds is important, in my opinion.
Even if you don't have that much funds, you still can do what's in your ability to minimize the risks for yourself and diversify. As well as manage the risks.
That's only my opinion, of course.
Even though I do use only two wallets myself just for the reason to not to have all the eggs in one basket, nothing would be wrong to diversify even more Roll Eyes

Diversify your fund into different wallets is a good practice. You are managing your fund like whales that never store all bitcoins in a single wallet. Whales have other reasons for this practice too but let's discuss only about safety of your fund by this diversification.

One wallet can be hacked, one device can be compromised, but if you can diversify your fund into some wallets, it's good. At least it saves you and you won't lose all your bitcoin in a single accident like hack.

The key is always be careful with your practice online and offline. Choose a good wallet (non custodial, open source), create your wallet, back up, test your backup, funding it with a small amount, and only funding it with full amount later if a small test works well. Store your backup safely and check it regularly.

When it comes to storing a large amount of assets, diversifying storage locations is what we need to do because it will reduce risk, but it will also put more pressure on us and is not as perfect as we think. If you use 2 or 3 wallets to store your bitcoins, that means you will also have to protect 2 to 3 seed phrases/private keys. This is also something to consider because protecting seed phrases is not easy, especially when there are many seed phrases.

In general, every method has its advantages and disadvantages, no method can guarantee no risk and absolute safety, so it all depends on our choice. Personally, I still prefer to use a single wallet to store bitcoins and I've been fine with that for many years.