This doesn't just happen in web wallets, it also applies for exchanges as well never send investment funds from an exchange wallet because it would be going straight to their hot wallet and that would require their technical staff to help retrieve it which would require a miracle to happen in most cases.
I would never recommend a web wallet to anyone because not only is it vulnerable to phishing attacks, it also involves a bit of centralisation, I have seen several cases where wallets freeze their users assets for one reason or the other, I personally used a mobile wallet, you can get this with Trust wallet and Imtoken.
Topic: Dangerous disadvantage of web wallet. (Read 309 times)
this is a good point and all but i would argue that it has nothing to do with disadvantage of using web wallets (your title). it is all about the user not knowing how things work with the tools he was using. it is like not knowing how to drive a car and getting behind the wheel, after having an accident blame the "car" for being dangerous.
another issues is the user jumping in with such a huge amount at once! and that in an "investment platform" which may not even be real and could have scammed him just as easily.
every tool has a purpose and its own use cases. web wallets such as Coinbase are excellent tools for beginners who want to still have the feeling of a familiar interface (like PayPal or their bank,...) and don't bother with a lot of things. however, it is not for storage, not for large amounts and not for users that are no longer "newbies". but for a beginner with a small amount, it is the best to get them started with this unfamiliar currency.
another issues is the user jumping in with such a huge amount at once! and that in an "investment platform" which may not even be real and could have scammed him just as easily.
every tool has a purpose and its own use cases. web wallets such as Coinbase are excellent tools for beginners who want to still have the feeling of a familiar interface (like PayPal or their bank,...) and don't bother with a lot of things. however, it is not for storage, not for large amounts and not for users that are no longer "newbies". but for a beginner with a small amount, it is the best to get them started with this unfamiliar currency.
Thie first time I used a web wallet was with blockchain but there you had your privatekey and it let you sync to them instead of downloading the whole blockchain on bitcoin qt.
When eth first came out I used a web wallet and I never realized that the private key was not mine I was not even sure how eth worked at that point as I was new, Anyway, me any countless others lost our funds there and that SOB that ran that site must be super rich now. First-time last time and never ever again. Just say no!! There is no good reason to ever use a web wallet.
When eth first came out I used a web wallet and I never realized that the private key was not mine I was not even sure how eth worked at that point as I was new, Anyway, me any countless others lost our funds there and that SOB that ran that site must be super rich now. First-time last time and never ever again. Just say no!! There is no good reason to ever use a web wallet.
its a big mistake .
send directly from a wallet with no fully control of that wallet for investement plan.
i wonder , he(OP) reads the terms and conditions, but did the OP seeing about simple notice like " dont send funds directly from third party" .
because, i guess most of good investement plan have a notice like that, such as GNT,PowerLedger, even Monaco, i quite remember about it.
send directly from a wallet with no fully control of that wallet for investement plan.
i wonder , he(OP) reads the terms and conditions, but did the OP seeing about simple notice like " dont send funds directly from third party" .
because, i guess most of good investement plan have a notice like that, such as GNT,PowerLedger, even Monaco, i quite remember about it.
This, of course, should be a basic principle, but if Coinbase has such a good opinion about security, someone just trusted them.
Of course, nobody should do that, but I guess someone bought BTC there and wanted to invest it immediately, bypassing sending them through his desktop wallet.
The mistake was that this person did not notice that the withdrawal address was different from the deposit address.If he knew this, he would probably inform the investment platform in time and change the address.
as far i know , the investement platfrom never ask for address for return if u cancelled your investement, and i am pretty sure OP have a category as a private investor or angel investor, mostly people with that category just must have 1 address for payment and return if needed(for cancelling investement). because the good investement does not want got problem such as money loundrying by huge investor like OP.
and that why notice "don't send funds directly from third party" must be owned by all investment programs.
It is possible that only one deposit address is given and the same for withdrawal in the case of cancelling of the investment. However, with so high investment amount certainly this user would have no problem changing the withdrawal address .. if only he knew that the Coinbase deposit and withdrawal address are different.
So how to protect yourself from mistakes? There are many scammers on the Internet.
Most web wallet and exchange wallets doesn't send out from your the wallet they provide because they are like contract addresses.
I am quite afraid storing any data in a place connected to the Internet in any way, the best option are hardware wallets. When you have bigger amount of BTC such thing is a priority, safety first.
its a big mistake .
send directly from a wallet with no fully control of that wallet for investement plan.
i wonder , he(OP) reads the terms and conditions, but did the OP seeing about simple notice like " dont send funds directly from third party" .
because, i guess most of good investement plan have a notice like that, such as GNT,PowerLedger, even Monaco, i quite remember about it.
send directly from a wallet with no fully control of that wallet for investement plan.
i wonder , he(OP) reads the terms and conditions, but did the OP seeing about simple notice like " dont send funds directly from third party" .
because, i guess most of good investement plan have a notice like that, such as GNT,PowerLedger, even Monaco, i quite remember about it.
This, of course, should be a basic principle, but if Coinbase has such a good opinion about security, someone just trusted them.
Of course, nobody should do that, but I guess someone bought BTC there and wanted to invest it immediately, bypassing sending them through his desktop wallet.
The mistake was that this person did not notice that the withdrawal address was different from the deposit address.If he knew this, he would probably inform the investment platform in time and change the address.
as far i know , the investement platfrom never ask for address for return if u cancelled your investement, and i am pretty sure OP have a category as a private investor or angel investor, mostly people with that category just must have 1 address for payment and return if needed(for cancelling investement). because the good investement does not want got problem such as money loundrying by huge investor like OP.
and that why notice "don't send funds directly from third party" must be owned by all investment programs.
I guess it's worth mentioning it,
Update
After 3 weeks sending email every day and more than 1 month waiting.. Coinbase are going to check everything with OctaFX and send me back my funds...
I hope this post can help people to not lose the hope If they have the same or similar problem!!
I will wait for the funds...
Thanks to all!! <3 <3
So that user have chances of recovering his 32 BTCs back but this could be the best lesson for anyone to choose the right wallet for storing funds even for the transaction to other investment and exchanging platforms since AML laws says the money will be return back to the origin of funds if the user does not agree their ToS. After 3 weeks sending email every day and more than 1 month waiting.. Coinbase are going to check everything with OctaFX and send me back my funds...
I hope this post can help people to not lose the hope If they have the same or similar problem!!
I will wait for the funds...
Thanks to all!! <3 <3
So how to protect yourself from mistakes? There are many scammers on the Internet.
Keep your eyes open and remember that if something looks too good, it's almost certainly a scam. And most importantly, learn and read topics like this. Although in this one is not about scam, it's about user's inattention (or lack of knowledge).
So how to protect yourself from mistakes? There are many scammers on the Internet.
its a big mistake .
send directly from a wallet with no fully control of that wallet for investement plan.
i wonder , he(OP) reads the terms and conditions, but did the OP seeing about simple notice like " dont send funds directly from third party" .
because, i guess most of good investement plan have a notice like that, such as GNT,PowerLedger, even Monaco, i quite remember about it.
send directly from a wallet with no fully control of that wallet for investement plan.
i wonder , he(OP) reads the terms and conditions, but did the OP seeing about simple notice like " dont send funds directly from third party" .
because, i guess most of good investement plan have a notice like that, such as GNT,PowerLedger, even Monaco, i quite remember about it.
This, of course, should be a basic principle, but if Coinbase has such a good opinion about security, someone just trusted them.
Of course, nobody should do that, but I guess someone bought BTC there and wanted to invest it immediately, bypassing sending them through his desktop wallet.
The mistake was that this person did not notice that the withdrawal address was different from the deposit address.If he knew this, he would probably inform the investment platform in time and change the address.
I remember a certain crypto exchange, called Octaex. in that exchange, I deposited some coins to buy a certain Altcoins I can guarantee it that time that I can make some profits on buying that Altcoins there because they're selling it for a lower price than the other exchanges. Out of nowhere, right after just I deposited my coins, the site cannot be reached anymore. I've waited for days until someone posted here that Octaex just disappears and run away with their user's funds. That's why keeping your bitcoin on some web wallet is dangerous, I experience it myself. what if I deposited a large number of coins, I cannot get that back again until now.
You are tempted by lower prices, and don't carefully research the reputation of the exchange, getting used to more popular exchanges is better because it has a refund clause in some cases.
Transactions for sending to hot wallet have been completed, but I doubt if it happens in a small market, most are not responsible for user errors.
From all this I see the need to refer to caution in checking the transaction address.
That was my first ever experience on buying low selling high, but it went wrong. I thought buying from that exchange will gives me more profit then I was wrong. it was a bad move from me. I didn't know how brutal it is if some unknown exchanges just close suddenly. that's why when keeping our bitcoin its really not recomend to store it on some unknown exchanges.
its a big mistake .
send directly from a wallet with no fully control of that wallet for investement plan.
i wonder , he(OP) reads the terms and conditions, but did the OP seeing about simple notice like " dont send funds directly from third party" .
because, i guess most of good investement plan have a notice like that, such as GNT,PowerLedger, even Monaco, i quite remember about it.
send directly from a wallet with no fully control of that wallet for investement plan.
i wonder , he(OP) reads the terms and conditions, but did the OP seeing about simple notice like " dont send funds directly from third party" .
because, i guess most of good investement plan have a notice like that, such as GNT,PowerLedger, even Monaco, i quite remember about it.
legendary
Activity: 2436
Merit: 1189
Need Campaign Manager?PM on telegram @sujonali1819
Op is really very informative to all who don't know about it yet. I also do not take it seriously before seeing this topic. Yes, It is right that I know the web wallet has some disadvantage but I don't know it could be so painful. I am now aware of using a web wallet mainly before sending funds to any trading/investment platform. Thank you for making people aware by sharing this information.
I don't really get why people don't bother to simply download electrum - the processes involved are just as easy as a web wallet, sometimes even easier given the fact that a lot of web wallets hide certain functionalities in obscure places (cough cough, blockchain.com).
Even worse are hosted wallets, where you don't have custody over your own private keys.
It essentially defies the entire point of cryptos to begin with. Absurd.
Even worse are hosted wallets, where you don't have custody over your own private keys.
It essentially defies the entire point of cryptos to begin with. Absurd.
This thread is not about how difficult it is to install desktop wallet, but more about the risks associated with using web wallets.
Unfortunately, but to buy, sell or exchange cryptocurrencies the most convenient form is online exchange, so if we have to use them, it's good to know the threats and I think that OP mainly for that created this thread.
If you are a holder you are at risk of any attacks if you used a web wallet that's why it's advisable to use the hardware wallet so that we can assure the security of our funds but if we are a short time holder and trade what we receive then for me it's ok to use the web wallet since that is more convenient and the thing we need to do is to set up a strong password and always activate the 2fa.
Since this post is in a beginner's section, perhaps it would be best if we inform newbies reading this post who are still unaware of the differences between a custodial web wallet and non-custodial web wallet.
In a custodial wallet, users don't have complete control of their private keys and funds. A good example is Coinbase which was mentioned in the OP.
A non-custodial wallet is the complete opposite of a custodial wallet where users have complete control priv. keys and funds.
In a custodial wallet, users don't have complete control of their private keys and funds. A good example is Coinbase which was mentioned in the OP.
A non-custodial wallet is the complete opposite of a custodial wallet where users have complete control priv. keys and funds.
I don't really get why people don't bother to simply download electrum - the processes involved are just as easy as a web wallet, sometimes even easier given the fact that a lot of web wallets hide certain functionalities in obscure places (cough cough, blockchain.com).
Even worse are hosted wallets, where you don't have custody over your own private keys.
It essentially defies the entire point of cryptos to begin with. Absurd.
Even worse are hosted wallets, where you don't have custody over your own private keys.
It essentially defies the entire point of cryptos to begin with. Absurd.
This thread is not about how difficult it is to install desktop wallet, but more about the risks associated with using web wallets.
Unfortunately, but to buy, sell or exchange cryptocurrencies the most convenient form is online exchange, so if we have to use them, it's good to know the threats and I think that OP mainly for that created this thread.
I don't really get why people don't bother to simply download electrum - the processes involved are just as easy as a web wallet, sometimes even easier given the fact that a lot of web wallets hide certain functionalities in obscure places (cough cough, blockchain.com).
Even worse are hosted wallets, where you don't have custody over your own private keys.
It essentially defies the entire point of cryptos to begin with. Absurd.
Even worse are hosted wallets, where you don't have custody over your own private keys.
It essentially defies the entire point of cryptos to begin with. Absurd.
In any case, you cannot store large amounts in your wallet and you need to take care of security.
I remember a certain crypto exchange, called Octaex. in that exchange, I deposited some coins to buy a certain Altcoins I can guarantee it that time that I can make some profits on buying that Altcoins there because they're selling it for a lower price than the other exchanges. Out of nowhere, right after just I deposited my coins, the site cannot be reached anymore. I've waited for days until someone posted here that Octaex just disappears and run away with their user's funds. That's why keeping your bitcoin on some web wallet is dangerous, I experience it myself. what if I deposited a large number of coins, I cannot get that back again until now.
You are tempted by lower prices, and don't carefully research the reputation of the exchange, getting used to more popular exchanges is better because it has a refund clause in some cases.
Transactions for sending to hot wallet have been completed, but I doubt if it happens in a small market, most are not responsible for user errors.
From all this I see the need to refer to caution in checking the transaction address.
Jump to: