Topic: Understand your wallet - page 2. (Read 404 times)

Coinbase noncustodial wallet? Be it custodial or noncustodial, Coinbase is one of the wallet I can not recommend for bitcoin users. It is close source, not having replace-by-fee or child-pay-for-parent feature. Recommending online seed phrase backup, not having multisig. Can you connect it to hardware wallet? I do not think so.

I will advise people to download from the official website. Verify the PGP signature if available.

Non custodial wallet isn't technical, you can directly install the wallet from google play or apple app, write down the seed phrase and input your seed phrase, it's done. Of course it's way better if you buy a hardware wallet or create your own cold storage than use non custodial wallet as a hot wallet.

Most of the times why people choose exchange over non custodial wallet is they can stake their Bitcoin and don't need to spend more fee to move their coins.

You are quite good because you already know how to store the Bitcoins you have in your wallet from the start when you had Bitcoins. I'm different because I've kept my Bitcoins on exchanges for quite a long time. I thought it was normal and without problems because I didn't notice any problems. Moreover, if you want to withdraw fiat immediately, then it will be quite simple to do.
After I understood, finally tried several recommended wallets. I initially mixed my investment and trading assets in one wallet. and I seem to have difficulty controlling it. In the end, I chose to separate the Bitcoin I held for investment in a hardware wallet and store other assets in a different wallet.
I don't know if anyone here also does the same thing. but honestly, I don't pay attention to the features in the wallet.

They can choose a Bitcoin wallet to use from
https://bitcoin.org/en/choose-your-wallet

Read reviews from
https://walletscrutiny.com/
https://bitcoinbinary.org/

I agree that two main things for consideration when choosing a wallet to use is

Open source
Non custodial

Without these twos, I will ignore it and find another one.

"Not your keys, not your bitcoins" and use custodial and close source wallet is similar to it's not your bitcoins.

I don't think he has a problem with understanding since he's not the only one who pointed this out to you. Maybe you're having trouble explaining your point properly? What did you want to express with this topic, and was it really necessary to create a topic about it?



You see? Someone else needs to clarify your point instead of you making it yourself in your OP. Try to express your thoughts better next time so people here understand you. Just my two cents.

OP, what you say can, of course, be understood, but the logic itself is missing. How can you rely on the opinions of other people without knowing where your funds will be stored? You are on the Internet, and without your investigation and analysis, trusting someone is fraught with trouble.
Yes, there is a lot of information on the forum; moreover, there is a lot of it on the Internet, but any information must be filtered. I think any person who is worried about their money will be interested in complete information about storage and maintenance methods.

Look for trusted reviews and analyses of wallets. You can also ask users here for feedback and advice on certain wallets. There have been discussions here on different kinds of wallets. You just have to search for them. Keywords such as non-custodial and open-source are the most important things to consider. You can start with the most basic like making sure that your wallet gives you the private keys. That basically means it is non-custodial. Meaning, you have full control of your funds. Actually, you don't have to be an expert and do your own investigation on every single wallet option. A good research can make up for your lack of technical expertise.

I don't think using a non custodial wallet (no CoinJoin) is complicated and difficult in practice for many people. They only learn how to back up their wallet, seed phrase and it is easy enough to practice smoothly.

How to back up a seed phrase

Most of people use exchanges and exchange accounts, addresses from their exchange accounts for deposit, withdrawal and leave their coins on exchanges without fear of loss.

They believe exchanges are good at security and exchanges won't be hacked or won't scam exit.

They don't own private keys or mnemonic seed of their addresses from exchange account.

Reminder: do not keep your money in online accounts

There are many factors to consider when we are going to choose a wallet. First of all, you always have to use a non-custodial open-source wallet, either a hardware wallet or a hot wallet. Based on your requirements, you have to choose what type of wallet you need. Even on hardware wallets, there are many types of wallets. So you have to understand your needs first and then search for what type of wallet you need. But the priority should always be to choose non-custodial and open-source. Otherwise, we aren't in a safe zone at all. Never use exchange or custodial wallets. Otherwise, you might lose your valuable funds at any time.

Your English is totally broken. I also had trouble reading your post. You need to improve your writing skills so people can understand what you’re writing about.


Crypto exchanges, whether centralized or decentralized exchanges should not be used as a storage for your coins. Always use a non-custodial wallet to store your coins and if you have a significant amount of hodlings, you should seriously consider buying a hardware wallet.

When I found out there a wallet has to be opensource so many developers could see some faults in the wallet. It became the primary reason to use the wallet. But before this, I just use any as long as it gives me a private key as I can import it to any wallet.

But is there an incident where private keys are copied by the developers of the wallet to which it's not just the user who has the private key but also them?

Maybe you are having problems in understanding thing's that's why it seems difficult for you to grab, it is just about needs why people should have more information about wallets.
Yes, this is exactly what I am talking about expecially exchange wallets , since it is a centralised wallet it is important for beginners to the exchange they use very well.

Personally speaking, I used coinbase wallet for a few years for the same reason, and also I had Electrum but I couldn't stop using coinbase wallet because I felt more comfortable with that so we may need a reason for the change even if we know what is the right thing to do. At least OP learned from the mistakes in the past and tried to pass them to new-gen newbies who might repeat the same.

I was also lost from what the OP was trying to pass. For someone who is currently at full member status he makes some unorganized post like someone who is a newbie.
From what I think I got is that the OP was pointing out that some people don't understand what a wallet is also they don't understand how to use an exchange, but if someone has gotten to the extent of knowing what sees phrase is all about then they should not have much problem.


Don't just use a wallet based on people's recommendations, it's not safe to save your Bitcoin in a wallet without doing your own personal research on the wallet.

As a beginner I think our focus at that time was following the instructions of those bitcoin experts who we held on high esteem and took their recommendations on what to do and what not to do wholly. It wasn't about what we wanted but which wallet they recommended. We trusted their judgement. It was about, securing the wallet as well as our coins.

I think that as we start becoming very interested in the wallets and other technical aspects of Bitcoin, we may now delve into the different wallets and bw finally able to make best decision about it. some would go on to prefer a hardware wallet to a software wallet or vice-versa.

Yes, this is almost what the OP is trying to say by citing his personal experience, leading to the importance of being convinced that one must know and understand how a private wallet works. This research will inevitably lead to identifying the various types of wallets and clarifying the differences between them, and therefore it will be useful to avoid centralized ones after getting to know about them deeply.

Today, no one anymore owns just Bitcoin or one cryptocurrency, so everyone is always looking for the safest multi-currency wallet. The best choice remains hardware wallets that have evolved and now support almost all or most networks. All other types of electronic wallets, even if they are completely decentralized, always support only one network, or if they are centralized, they support more than one network, and this type is never recommended.

If am been honest i couldn't
 learn anything from what you just said.
Let me assume what you trying to say is
Do your personal research why a wallet was recommended?
And that CEX is for trading while non custodial is for holding?
From what have learnt a good wallet for storing Bitcoin is an open sourced non custodial wallet
With good customer review.

Some of us that are investing  and trading bitcoin we just only have idea about the wallet which has a seedphrase for security, and which contains addresses that can be copied. We are so comfortable using wallets, and not going further to make research if the wallet is good for keeping your valuable coins.

In the early time of the crypto journey the wallets  introduced to some of us were recommended by experienced people who started the journey before us,  and we never made attempt of trying to know what could be the reason why the wallet was recommended to be a good one.

I have used several wallets since I started having bitcoin, some of these wallet were introduced to me by people who first me know bitcoin and I was told these wallets are good and I believe it because it is being used by majorities of traders and investors ,but I never tried on my own to do more findings about these wallets, I just go with what people have to say about these wallet.

Non custodial wallet is a good wallet for storing bitcoin,  but it can look technical for some people. it is important to get to understand the features of the wallet.

Also, exchange wallet some people don't even know about it, they only trade with it because peopple say something good about it, and no personal finding to know more about it.