My BTC safer in my Electrum wallet than in my Bitstamp account ? - page 2.

Patatas

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Quote from: ziggy2 on March 18, 2017, 05:41:41 AM

Hello,
I read somewhere that your BTC are less at risk if, instead of keeping them on your BTC account (say at Bitstamp), you transfer and keep inyou PC wallet (say Electrum), until you need to use them.
Is this true ? Roll Eyes

(if there is a simple answer to this question). Thank you !

There is a simple answer,Yes!
Giving you a simple example : -

When you open an account on an exchange,your money by default is stored into their wallet.The wallet you don't have full access to.They have control over your funds as technically,that wallet isn't yours.
By keeping your coins in a wallet such as electrum,you get full control over your bitcoins.
If the exchange gets hacked or just what if the owner decides to run away with your coins stored on their wallet,you cannot do anything.Simply because you never had control over that wallet.
If the wallet is locally installed on your PC,unless someone hacks your computer or you lose the keys,your coins are always safe.

talkbitcoin

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Quote from: ziggy2 on March 18, 2017, 06:59:40 AM

I beleive that, having been using computers for decades without serious trouble, I will be able to keep a safe back-up of my wallet, on a hard disk. I will get some clarifications on how to use Electrum on the specialised section of this forum. The use of Electrum (and possibly other wallets) is not so easy to understand in detail - I just sent and received money so far, without any attempt to understand more.

just remember that anything that exists on hardware (like your hard disk) is vulnerable to either being hacked if not encrypted properly or you had something like a keylogger on your system and accidentally open the wallet on that system.

or is susceptible to hardware failure such as your HDD not working again because of electrical shock or something similar.

remember to make a hard copy (write down the seed on paper) of your wallet.

ziggy2

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Very interesting and helpful, thank you to those who answered.

I realise now that the platforms like Bistamp are doing what banks are doing. You also never know whether a bank is going to give you back the money that you "have" in your account...! It is simple and convenient, for sure, but not that safe at all.

I beleive that, having been using computers for decades without serious trouble, I will be able to keep a safe back-up of my wallet, on a hard disk. I will get some clarifications on how to use Electrum on the specialised section of this forum. The use of Electrum (and possibly other wallets) is not so easy to understand in detail - I just sent and received money so far, without any attempt to understand more.

Xester

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Quote from: ziggy2 on March 18, 2017, 05:41:41 AM

Hello,
I read somewhere that your BTC are less at risk if, instead of keeping them on your BTC account (say at Bitstamp), you transfer and keep inyou PC wallet (say Electrum), until you need to use them.
Is this true ? Roll Eyes

(if there is a simple answer to this question). Thank you !

If you have a big amount of bitcoin and you are skilled technically on keeping your bitcoins in your pc is the best way to go. But if you are not technically inclined then if you keep your bitcoin in your pc and then you encounter a virus or you hardware was damaged and you dont know what to do you will eventually lost your bitcoins. And so if you doesnt know the necessary things that there are to learn about keeping bitcoin in your pc then just keep it on web wallet but dont place it on one site but on different sites so you will have a lesser risk.

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Quote from: ziggy2 on March 18, 2017, 05:48:39 AM

Could you please elaborate a little on the reasons why it is safer : Bistamp could go "bankrupt" for example (like MtGox) or become unacessible, or ...?
And also, why is Electrum vulnerable - if my PC fails without a backup ?

Having bitcoins in a wallet on your computer is dangerous if you have a computer virus or other malware, or if you fail to store a good backup in a secure location.

If you use an account from a service (such as BitStamp), then you don't actually have any bitcoins at all. All you have is a promise.

You GIVE your bitcoins to the service. Then the service creates an entry in their own database keeping track of how many bitcoins you've let them have. This entry is called an "account". Then they give you a promise that they will send the same number of THEIR bitcoins wherever you ask them to whenever you ask them. You have to decide if you trust that they will always keep that promise and if you trust that they will always be able to keep that promise.

Quote from: ziggy2 on March 18, 2017, 06:09:56 AM

I have another (beginner's) question : are the platforms like Bistamp "playing" with our Bitcoins, like banks do with our money, for example speculation, buy USD and sell?

Since most bitcoin exchanges are not well regulated by any governments and do not typically undergo any audit by an independent third party, it is impossible to know for sure if they are "playing" with your bitcoins. Most of them claim they are not. You have to decide if you trust them.

neochiny

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Simply speaking, if you put your bitcoins in an exchange(or even a web wallet) you're at the mercy of others. Everything is controlled by them. From how you'd be able to withdraw your own funds, to how much they say you have.

Electrum or desktop wallets on the other hand, means you control your funds. And only you have a say on how you'd use it.

I for one would rather lose money because I made a mistake/own stupidity(I could take measures to avoid this, like learning what and what not to do)
than have my funds stolen/'lost'' by others due to exit scams, supposed hacks, etc (how do you guard against that.)

Quote from: ziggy2 on March 18, 2017, 06:09:56 AM

Thank you very much to all of you for your clear and precise answers. I understand very well. The only "price to pay" seems that it takes some time to send the BTC back to Bitstamp if I want to sell them and get Euros of USD instead.

I have another (beginner's) question : are the platforms like Bistamp "playing" with our Bitcoins, like banks do with our money, for example speculation, buy USD and sell ...I suppose it cannot be done with BTC ?

Well, some users do keep some amount on their web wallets or exchanges but just make sure it's 'small amounts' only, something you can afford to lose.
Keep your main funds in desktop/paper/hardware wallets.

They do make money from trading/conversion fees and such. But yeah, they probably use the funds. I wouldn't be surprised.

ziggy2

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Thank you very much to all of you for your clear and precise answers. I understand very well. The only "price to pay" seems that it takes some time to send the BTC back to Bitstamp if I want to sell them and get Euros of USD instead.

I have another (beginner's) question : are the platforms like Bistamp "playing" with our Bitcoins, like banks do with our money, for example speculation, buy USD and sell ...I suppose it cannot be done with BTC ?

Iranus

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Quote from: ziggy2 on March 18, 2017, 05:48:39 AM

Thanks to both of you.
Could you please elaborate a little on the reasons why it is safer : Bistamp could go "bankrupt" for example (like MtGox) or become unacessible, or ...?
And also, why is Electrum vulnerable - if my PC fails without a backup ?

Online wallets are never as secure. You know that if the service fails or your account gets hacked with username and password (since people can access it from anywhere) you're screwed. Electrum will only be vulnerable if either your PC fails without a backup (unlikely if you're responsible) or your computer is infected with malware which can access it (also unlikely if you're responsible). The key is that if something goes wrong with your Electrum wallet you know that you are capable of sorting it out in most cases and it's actually your Bitcoin rather than being held by an exchange which could fail or enact legal precautions at any time.

amacar2

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Quote from: ziggy2 on March 18, 2017, 05:48:39 AM

Could you please elaborate a little on the reasons why it is safer : Bistamp could go "bankrupt" for example (like MtGox) or become unacessible, or ...?

Because they can get hacked and they can't just return you back your bitcoins. Bitfinex have recently gone through a major security breach and many have lost millions due to bitfinex poor security (and this is not the first time for them) https://en.wikipedia.org/wiki/Bitfinex_hack

Quote from: ziggy2 on March 18, 2017, 05:48:39 AM

And also, why is Electrum vulnerable - if my PC fails without a backup ?

If you don't make proper backup of your wallet than you may lose good amount of bitcoin like this guy here https://bitcointalksearch.org/topic/29-btc-possibly-lost-1830282

Also someone can access your wallet physically and you may loss all bitcoin you have there.

Here is completely separate section for discussion about Electrum wallet, check it out
https://bitcointalk.org/index.php?board=98.0

phr0stbyt3

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It basically varies from person to person depending on how much they trust. I have no problem in using a pc wallet but the time to set it up and match it with the network is too much. If you want store your coins in coinbase it is trusted from years and i currently have no problems with it

Hatcher

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Quote from: ziggy2 on March 18, 2017, 05:48:39 AM

Thanks to both of you.
Could you please elaborate a little on the reasons why it is safer : Bistamp could go "bankrupt" for example (like MtGox) or become unacessible, or ...?
And also, why is Electrum vulnerable - if my PC fails without a backup ?

Yep, that's exactly right. Bitstamp could disappear off the face of the planet and you will no longer have your bitcoins. But if you have them stored in your own wallet, then they are your bitcoins that no one can touch.

ziggy2

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Thanks to both of you.
Could you please elaborate a little on the reasons why it is safer : Bistamp could go "bankrupt" for example (like MtGox) or become unacessible, or ...?
And also, why is Electrum vulnerable - if my PC fails without a backup ?

amacar2

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Yes if the amount is not that big but its better to store bitcoin in paper wallet or hardware wallets like trezor. Electrum is more secure than any exchange platform but not 100% secure.

Hatcher

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Yes.

ziggy2

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Hello,
I read somewhere that your BTC are less at risk if, instead of keeping them on your BTC account (say at Bitstamp), you transfer and keep inyou PC wallet (say Electrum), until you need to use them.
Is this true ? Roll Eyes

(if there is a simple answer to this question). Thank you !

Topic: My BTC safer in my Electrum wallet than in my Bitstamp account ? - page 2. (Read 2613 times)