What Are The Dangers Of Multiple Coin Wallets?

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Quote from: Dejoe75 on March 08, 2018, 06:13:43 AM

Quote from: OmegaStarScream on March 08, 2018, 05:57:50 AM

The most reputable ones are probably: Exodus, Jaxx, Coinomi, Eidoo, Enjin (some of them had security issues in the past). The downside of these wallets is that they are not open source so you will have to take the developers word when they say "We're not sending the private keys to our servers". I wouldn't suggest using these wallets unless you are using them for holding small amounts. I recommend buying a hardware wallet, both Trezor and Ledger support BTC, Ethereum and all ERC20 tokens, in addition to some alts.

In order words, would it be safe to say that no wallet is 100% safe, apart from the hardware wallet? Since the hardware wallets are equally multiple coin wallets, what are their downsides?

I wouldn't consider a hardware wallet completely safe. For example, Ledger device pairing practices are less secure than credit cards. You are also highly vulnerable to theft via physical access -- encrypted wallets on unmarked USBs or PCs are safer for this reason.

I think they are great for day-to-day spending, but nobody should be plugging all of their private keys into an online computer, and that's what people are doing with hardware wallets. I think exploits may surface at some point that can overcome the key shielding mechanisms.

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Quote from: Dejoe75 on March 08, 2018, 06:13:43 AM

Since the hardware wallets are equally multiple coin wallets, what are their downsides?

In addition to what "AdolfinWolf" mentioned above, read all of the articles on Bitcoin Wallet Guy. It shows downsides of different hardware wallets (skip to the ending part of each review).

pealr12

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Do not put the eggs in one basket, much better if you have different wallet for your coins cause once you put all your coins and ypu accidentally made a mistake all your coins will be lost.

Lovecove

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That's just the way it works, man. Treat each coin with respect. It's not the coins' fault that you're going into so many coins that you can't make a paper wallet for each one.

You touched on a really important point: Paper wallets (when done correctly) are the safest storage option. Hardware and web wallets are hackable (although I've heard good things about some solid hardware wallets, like Trezor).

The good news is, you don't need a new wallet for every "token." Because I'm assuming you mean ERC20 tokens, which are all ethereum-based, so multiple tokens can be stored in one ethereum address.

My best advice is to take your PC or laptop (or even buy a new one JUST for making cold wallets), then install ubuntu on a keydrive and boot your machine with that bootable OS.

Then, just proceed to download the official client for each coin and create a paper wallet. Write the public and private keys down on a sheet of paper, double check each character.

It's a pain, but that's how you stay safe in crypto.

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Quote from: Dejoe75 on March 08, 2018, 05:24:16 AM

I guess if I am buying several cryptocurrencies/altcoins, I would need different wallets to keep them away from the prying eyes of hackers. We have already agreed that leaving the coins with exchanges is not a good option and that using wallets that are server-based is equally not safe enough. The best bet, therefore, is to keep them in hardware or paper wallets.

Now that there are multiple coins/tokens out there and you already have lots of them, practically, is it feasible to have several wallets at a time, especially if they have to be downloaded and installed on your system? If not, what wallet would anyone recommend that can hold BTC and several other altcoins at the same time?

Should one decide to settle for a wallet that has the capacity to store BTC and several altcoins at a time, what are the inherent dangers associated with such a wallet?

In my opinion, if your coin is small, you should store in hardware wallet. If your coin is very large, you can research bank system for Bitcoin such as Bitwala

AdolfinWolf

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Quote from: Dejoe75 on March 08, 2018, 06:13:43 AM

Quote from: OmegaStarScream on March 08, 2018, 05:57:50 AM

The most reputable ones are probably: Exodus, Jaxx, Coinomi, Eidoo, Enjin (some of them had security issues in the past). The downside of these wallets is that they are not open source so you will have to take the developers word when they say "We're not sending the private keys to our servers". I wouldn't suggest using these wallets unless you are using them for holding small amounts. I recommend buying a hardware wallet, both Trezor and Ledger support BTC, Ethereum and all ERC20 tokens, in addition to some alts.

In order words, would it be safe to say that no wallet is 100% safe, apart from the hardware wallet? Since the hardware wallets are equally multiple coin wallets, what are their downsides?

Hardware wallet are also not 100% safe. your house could burn down and you'll lose your funds aswell.

Some downsides of a trezor/ledger are:

You cannot store any coin on them, they only support a specific amount of coins.
They could be expensive, not everyone can afford to spend another 100 bucks on basically a USB.
For them to work you'll always need to physically carry them with you. (Unless you import the seed of the ledger wallet, but then what's the point of the ledger in the first place?)

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Quote from: noorman0 on March 08, 2018, 06:23:44 AM

It depends on how much wealth you have.
If you have a lot of coins, it may be quite helpful to reduce hacker attacks that cause significant losses.
But, multiplying the wallet will be more risky than the owner of the wallet. For example, forgot passwords etc., you should prepare your important data on a small notebook.

I would also go as far to say that you should have a copy of said notebook and even keep it somewhere away from the other one
Ledger crypto steel could prove to be a valuable product too.

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It depends on how much wealth you have.
If you have a lot of coins, it may be quite helpful to reduce hacker attacks that cause significant losses.
But, multiplying the wallet will be more risky than the owner of the wallet. For example, forgot passwords etc., you should prepare your important data on a small notebook.

Dejoe75

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Quote from: OmegaStarScream on March 08, 2018, 05:57:50 AM

The most reputable ones are probably: Exodus, Jaxx, Coinomi, Eidoo, Enjin (some of them had security issues in the past). The downside of these wallets is that they are not open source so you will have to take the developers word when they say "We're not sending the private keys to our servers". I wouldn't suggest using these wallets unless you are using them for holding small amounts. I recommend buying a hardware wallet, both Trezor and Ledger support BTC, Ethereum and all ERC20 tokens, in addition to some alts.

In order words, would it be safe to say that no wallet is 100% safe, apart from the hardware wallet? Since the hardware wallets are equally multiple coin wallets, what are their downsides?

OmegaStarScream

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The most reputable ones are probably: Exodus, Jaxx, Coinomi, Eidoo, Enjin (some of them had security issues in the past). The downside of these wallets is that they are not open source so you will have to take the developers word when they say "We're not sending the private keys to our servers". I wouldn't suggest using these wallets unless you are using them for holding small amounts. I recommend buying a hardware wallet, both Trezor and Ledger support BTC, Ethereum and all ERC20 tokens, in addition to some alts.

Dejoe75

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I guess if I am buying several cryptocurrencies/altcoins, I would need different wallets to keep them away from the prying eyes of hackers. We have already agreed that leaving the coins with exchanges is not a good option and that using wallets that are server-based is equally not safe enough. The best bet, therefore, is to keep them in hardware or paper wallets.

Now that there are multiple coins/tokens out there and you already have lots of them, practically, is it feasible to have several wallets at a time, especially if they have to be downloaded and installed on your system? If not, what wallet would anyone recommend that can hold BTC and several other altcoins at the same time?

Should one decide to settle for a wallet that has the capacity to store BTC and several altcoins at a time, what are the inherent dangers associated with such a wallet?

Topic: What Are The Dangers Of Multiple Coin Wallets? (Read 170 times)