Topic: 3 Bitcoin & Cryptocurrency Wallets You SHOULDN’T Use (Read 172 times)

Unfortunately it looks like you actually need to shove these information down people's throats for them to take seriously what most experienced members here are trying to say when it comes to securing your investments.

It's a good guide you've created--definitely not advisable to store your crypto in an exchange or Coinbase. The risks are too high, and you're better off investing in a more secure wallet, especially if you plan to hold on to a lot of funds.

Still, leaving your coins/tokens on exchanges is heavily not recommended if you're not actively trading them.

You should also check their Terms of Service before you do that.

https://www.coinbase.com/legal/user_agreement?locale=en


Always go through your own wallet (that you own the private key for) when depositing or withdrawing between Coinbase and a gambling site.

I'm using exchange site wallet to some of my crypto's but not going to store for a long time.

I'm afraid i have to disagree with you (and therefore agree with the OP). Using any exchange (or online wallet) is a bad idear in my book. Like the old saying goes: "As long as you're not the only one in controll of your private key(s), you're not the only one in controll of your funds".

I'd even go as far as adding all online wallets to the list of wallets that shouldn't be used. Some of them are a bit more secure than exchange wallets, but they're still not as secure as a truely vetted desktop wallet on a clean pc, or a hardware wallet, or a paper wallet, or a wallet on an airgapped system.

I also agree not to use free wallet and coin base but everybody can use exchange site wallet only to legit site. Not all exchange sites are not secure I just can't name them all.

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People new to bitcoin or cryptocurrencies in general usually simply just open up Google PlayStore or the Apple AppStore and do a search for “bitcoin wallet” and choose probably the first app that comes out on the list. Unfortunately not every single one of the wallets with the most downloads are actually good. For your guidance, here are 3 bitcoin and cryptocurrency wallets you shouldn’t use.




Freewallet

Both available on Android and on iOS; looking at the screenshots of the app, Freewallet doesn’t actually doesn’t look bad, also knowing that their wallet actually supports more than a dozen coins and tokens. Unfortunately though, Freewallet doesn’t give you access to your wallet’s private key(s). Instead, they let their users use a username and password login instead. That alone should be a huge red flag, due to them having total control over your private key(s), and them being able to revoke access to their user’s funds if they wanted to.

Not to mention the dozen complaints about Freewallet on Reddit.

https://www.reddit.com/r/Monero/comments/8diy1y/freewalletorg_stole_my_money/
https://www.reddit.com/r/litecoin/comments/7zt2ew/freewalletorg_stolen_my_ltc_biggest_scammers_rip/
https://www.reddit.com/r/CryptoCurrency/comments/7mqsep/so_freewallet_is_a_100_scam_and_here_is_the_proof/
https://www.reddit.com/r/Lisk/comments/7xbwu5/scammed_by_freewallet/
https://www.reddit.com/r/Bitcoin/comments/7m01j0/freewallet_just_stole_all_of_my_money_and_access/


Exchange Wallets

Alright. Exchanges aren’t wallets, true. But they do give you wallet addresses for multiple coins/tokens for you to deposit your funds. Unfortunately, some people actually use exchanges as their wallets due to the huge selection of coins/tokens.

Bitcoin and Cryptocurrency Exchanges should only be solely for exchange of coins/tokens to fiat and vice versa due to exchanges being a very hot target for hackers. Most exchanges like Binance are pretty secure, but take note that nothing is unhackable. Even the #1 bitcoin exchange of 2010 to 2014, MtGox, got hacked; losing approximately ₿850,000.


Coinbase

Shocker, ain’t it?

I definitely have nothing against Coinbase. Actually, huge props to them for creating one of the Image result for coinbase logobest(if not the best) platforms for buying and selling bitcoin, ethereum, and a few others. Yes, you can freely use Coinbase as a wallet; but Coinbase unfortunately still falls under the exchange category.

To put it simply, just like with any other exchange, Coinbase has your private key(s) and you don’t. Coinbase being a centralized entity, they could simply lock up your account if they want to, or if the government told them to; due to multiple possible reasons like you being accused of money laundering and other similar crimes.

After buying some bitcoin on Coinbase, simply move out your coins over to your own wallet immediately to prevent problems from happening.

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Relevant links:

• Cryptocurrency Wallets and it’s Risks https://cryptosec.info/guides/cryptocurrency-wallets-and-its-risks/
• DOs and DON’Ts on Securing Your Cryptocurrency Investments https://cryptosec.info/guides/crypto-investment-dos-and-donts/
• Bitcoin and Cryptocurrency Scams to Watch out for  https://cryptosec.info/guides/common-crypto-scams/
• Detecting Scam ICOs https://cryptosec.info/guides/scam-icos/