Topic: Crypto wallets have a long way to go (Read 280 times)

The solution you have mentioned is good but the situation you explained is not because of wallets that people used
 but how they keep the wallet safe and secured. In short, it's how stupid the users are as what NeuroticFish have stated which I definitely agree with it. There is a disadvantage of the solution you explained which is importing or connecting the wallet many times if you happen to be inactive for a short time due to certain reason is that a hacker or scammer could possibly steal your wallet seed phrase or private key if your device happens to be infected with malware since you will connect the wallet more than once.

There will always be problems and something to fix, that's why there are always updates to these apps sometimes. If these problems have been noticed or pointed out before these apps/exchanges were created, I am certain there would have been sorted out by developers. Also there are certainly other more challenging issues than just crypto wallets in the cryptospace.

There's this topic: Don't keep connected your wallet to a Dapps for a long time. that was made by Cryptovator and it's connected to this topic you made OP.

The solution that you got is actually good and many tend to forget to disconnect their wallets after connecting it. So, this could be suggested to the wallet provider developers and hopefully, they could add that feature.

Which a user can on/off it if they're the type of user that easily forgets, so before or while using it, they can set that feature and when they're AFK and they have forgotten their wallet is connected, it will automatically disconnect

You don't have to be tech savvy to do the basis that can protect your wallet one of my personal favorite is having a 2FA authentication on your device this doesn't only give you some safety on your wallet but it can also generally protect your other applications too.

It's one thing to understand that you aren't completely safe having your cryptos on an exchange rather keeping them in your personal wallet and it's another thing to actually protect the wallet. If one disciplined and careful with their private keys, password and device in addition with 2FA . It would make it hard for hackers to penetrate the persons wallet.

it became an old method that has been done a lot. one way to overcome this is to look at other people's comments whether the website is safe or not and if it continues to be connected then what must be done is to revoke all websites that are connected or indicated as scammers. and what is very important is not to use the main wallet for general use such as airdrops and also connecting to many websites that require the use of a wallet. Use a new wallet or not the main wallet, so you don't have to worry too much about losing assets. Make sure the main swallow is not connected to anything and is properly guarded. The main security lies in the users themselves, which is important.

Connecting wallet in different dapps can be issue of altcoins but you can't deny that securing your keys, seed is also same for all cryptocurrency including bitcoin. Though hackers try to steal your keys mostly with these dapps browser, we can't forget that older version of Electrum is vulnerable and many people have lost their bitcoin back in the days.
When it comes to wallet security, no matter which coin is it, you have to follow almost same security check.

This isn't the biggest issue in crypto, because it does not affect Bitcoin, and Bitcoin is the most popular cryptocurrency. It's a problem of shitcoins with smart contracts and dapps, and even if it was fixed, it won't change much, because that ecosystem is full of scams anyway. The real problem is that there's still a lot of hype about blockchain and tokens, and newbies actually believe that they have some merit and will make them rich.

I believe every single thing in the crypto world is in a developing phase right now, including the wallets because, it's one of the most important parts of crypto. There is a thread with a resembling topic that discussed connecting our wallets to a platform for a long or even not disconnecting it would cause harm here

It is still debatable if those are the mere cause of our wallets can be highly risky threatened or actually the sign or authorization is needed before they can execute the hack trials. However, it's always a wise move to do some anticipation steps to keep secure and aware regarding this kind of issue. IMHO to experience troublesome to keep our assets safe is better than getting scammed or hacked. I hope the technology will get better and more secure in the near future

There is a difference between disconnecting your wallet from a dApp and revoking smart contract allowances.
When you connect your wallet to a dApp, all the dApp can do is to see your addresses and their transactions history. It can also initiate transactions but it will need your approval to sign and broadcast them. Therefore, there is no security risks in keeping your wallet connected for too long, but it's not recommended for privacy reasons.

On the other hand, giving a dApp or a smart contract allowance to move your coins (needs your approval) might be risky if you don't revoke that allowance. A malicious dApp or a vulnerable smart contract can be exploited to steal your coins.
For more information about this:
How to revoke smart contract allowances/token approvals

The problem isn't the wallets but the users themselves, you are the ones that will still approve a transaction from unknown platforms, its like a scammer asking you if you want to buy a rotten Apple, you will give a YES or a NO, you are the captain of your ship.

The internet is very porous, so we should be careful and well informed about where we keep our money. As for the platform issue you raised, you did not explain this connection of a thing very well. If you are referring to granting third-party light access due to transactions, then you are on your own. But if you are referring to the connection after a successful transaction or usage, you can always log out manually after you are done with your wallet.

Also, make sure that you use only a non-custodial wallet that is open-source and secure with password, fingerprint, text message and 2FA protection in one wallet.

You don't have to be a technically competent person to write down and safeguard your personal keys properly; all you need is common sense and some reading skills to be able to comprehend what more competent people think about approaches to the security of cryptocurrency. But you're right that most people are too lazy to even learn about self-custody, which is why they will outsource this "activity" to third-party custodians or even centralized exchanges, giving up their right to independently control their funds. It is all about responsibility, and most are afraid of being responsible for something. Neither hot nor hardware wallets are going to solve this problem because these are tools to interact with the keys, not to provide users with self-sovereignty and independence. You should be keeping your keys in cold storage, transferring them to wallets only when you feel the need of spending coins. Simple as that. It doesn't really matter which wallet you will choose to make a transaction (assuming your choice is not an outright scam) because it is merely temporary storage whose only function is to send your coins further.

It's misconception that connecting wallet drains your funds. Error lies in approvals or acknowledging random transaction that you didn't initiate.

This is also true if the platform that has been connected too are not safe. Of course we only should connect to such platform that are totally safe and we must verify the legality first and make sure its not a fake one. Most users have been victimized with fake or copycat sites of those legits and thats why they are got scammed. Signing all the transactions they thought is legit. These are common modus on crypto so we must be aware on sites or dapps that we are using and downloading.

Assuming you have bank notes, Does keeping them somewhere safe require you to be tech savvy?

Private keys or seed phrases should exactly be treated like money. When you are keeping them, just imagine you are directly keeping the funds in your account. People do this every day with bank notes.

A hardware wallet has a security feature that didn't leave any footprint after use and I think even if you'll forget to disconnect it will automatically be disconnected to any device that you use.  I tend to agree with this that there are software wallets that didn't have this feature.

Sometimes our consciousness will lead from the hack if we aren't knowledgeable enough because we're confident of what we're doing even just writing it down on a piece of paper but we know how to keep it in a safe place.  Being paranoid won't help you to keep your private key safe and your wallet.

I don't think Keeping your keys safe has anything to do with tech savviness. Keeping your keys safe has to do with majorly how conscious and knowledgeable of how important your keys are, and the security risk it can pose if it enters the wrong hands. It deals with your security/safety consciousness. If people know that keys are important, an extra effort to ensure its safety.

Also, if a user must use and safeguard a recovery phrase in maximum safety, then a good recommendation from one of the best 2022 post that got me touched by @fillippone is worth going for with the title Securing Your Seed Phrase with Washers here you learn with the full explanation on how your keys (seed phrase) can be secured without the fear of carelessness in handling it, so far so good this is one of the means I've come across giving a lasting solution to dealing with private keys just as we know how risky the google drive, drop box and other online backup services could serve being vulnerable to loosing our keys on third parties, but using washers is ultimately the best solution to safeguard the keys and the detailed procedures is giving on the thread.

The most popular way of wallet hack and scam is not from long wallet logged in on Dex exchange but it's by users ignorant and greed over some airdrops which look too good to be real and yet they still move forward by connecting their wallet to those airdrops platform.
The last exchange i experience wallet hack from was back in 2018 etherdelta and folkdelta dex exchange where their are possibility of you Lossing your assets as soon as you connect your wallet to the dex.

It could be that people do not properly use crypto wallets to promote security.
I do not know anyone that would connect their physical wallet to anything at all, they would keep it safe and secured, regularly patting their pockets to ensure it is there. This is the same for bank accounts, people are very cynical with handling their finances linked to fiat, but with crypto, that sense of security is not replicated.

A solution is to use a wallet that gives you control of your keys, and use that wallet securely.

Writing down your recovery seed phrase and keeping it in secure places, is a secure way to store it. No means of handling finances is risk free, but there are practices that would lessen the risk.

- Jay -

While I agree that (at least some) wallets could become more newbie friendly, your problem is not about the wallets imho, it's about how stupid the users are.
[1]
Connecting a wallet holding significant amounts of coins (as value) to a platform to gain a couple more cents is usually a bad idea.
Using the same wallet for holding life changing amounts and for daily operations is usually a bad idea.
I will add that many keep thousands of dollars worth on exchanges and web wallets instead of investing 100$ in their security and buy a hardware wallet.

[2]
Not all users are tech savvy indeed, but just imagine - for analogy - that there are some who give to unknown people all their credit card information, including the CVV code and so on, then they are surprised people steal their money (and please don't say 3DSecure is not avoided by some websites).
Now this same thing happens with crypto wallets, at a larger scale. Is the wallets' fault or is it users greed and stupidity?


So yes, you may have some points, but pointing a finger to the wallets is incorrect / not fair. Some may want to improve in a way the users understand better what they do, but they cannot do miracles. Also keep in mind that the best bitcoin wallets are free / open source projects, hence the developers work for free there.

The biggest issue we have in the crypto space is crypto wallets, there are a few things that haven't been fixed yet or haven't been made easy yet.

1. I believe that one of the main reasons why wallets get hacked is connecting wallet to a platform for way too long, some users even forget to disconnect the connection after.

Solution

Why haven't we seen crypto wallets that disconnect from platforms on their own after minutes of inactivity, it's easier for users to forget to disconnect after successful trans.

2. Not every crypto users are tech savvy and most don't even know how to keep their keys safe till date, writing recovery seed down or carving on a stainless steel or wood is still risky , either a hot wallet or hardware wallet keeps your keys is a necessity, I believe that we still need some work on here, making safeguarding keys easy still have a long way.