Topic: Why beginners must consider burner wallet (Read 397 times)

  I agree with your thread OP you have made a good awareness to those that are doing the testnet task, it is wise to have burner wallet for your testnet task and have a real wallet for your asset storage or trading. A crypto enthusiast cannot have just one wallet, that’s not possible because they will always be a need to open a new wallet may be due do accessibility and usage. Every one with their choice of preference, some people have multiple account just for different purposes.  So people make that mistake just like the OP mention, you will end up losing your money, you won’t be able to keep track of your trades or the activities in the wallet. The wallet will be over bugged and if you are unlucky to fall into a scam From one of the airdrops and testnet jobs. There’s no doubt some of these new project are Ponzi scheme unfortunately for you jump into their hands. This is why in this coming bull run everyone should be careful with the links they click. Because you might just be falling into your reapers hands.
  Once you begin your crypto journey, make sure you know the nooks and crannies in the crypto space, and to do that you have to broaden your knowledge about the crypto space, if you are doing the testnet know it very well, and if you are trading know the concept of trading so that you don’t lose your money. Newbies don’t worry it’s not quantum physics, you can’t learn it all in one day, you will learn as time goes by when you show the interest for it.

 A burner wallet is a crypto  single-use account that connects to real malicious Blockchain application ,it can be used quickly and easily for a limited amount of time after which,it can be disposed. A burner wallet does not have to contain or store big quantity of crypto or any assets , instead contain only the amount of crypto needed to envelope the set up transaction .
It is always used where privacy and security are very important  and they are made and used for special purpose like minting NFTs or making transaction on dApp,funds can be transferred from your real wallet to burner and then make use for your various transactions.

I also have the same opinion as you and I use this trick too. Don't use the main wallet as a wallet for airdrops, testnets and the like that require direct interaction with dApps and various websites that require a wallet connection. because many scammers set traps to take over wallets using the drainer method. I have never connected the main wallet with a lot of assets to any airdrop.

I don't think that should be the case for burner wallets to be used. I create burner wallets also for projects from trusted teams. I don't like leaving any stone unturned. We've seen sites hacked into and messages and links given out to unsuspecting investors. A great deal of damage can be one before the site is reclaimed. What about those who are always in a rush to clink on links, believing since it's from a trusted project's site it should be fine? What I normally do is create one burner wallet for two or three projects. With that I can easily know where a hack is from if it comes. Creating a wallet takes less than 2 minutes to achieve. I don't think it should be any problem for anyone as to skip doing it. It saves one the ache on the long run.

You're very correct man, I saw this event play out under my watch in 2022. A colleague had these Doge tokens in her trust wallet. She was holding it and at that time, the value was really increasing owing to Elon Musk interference. Then another colleague convinced her to claim some airdrops which required her to connect her wallet to the smart contract. She did and that's how she lost all her coins. It was like a drama at the office.

It boils down to all online  activities, whether social media, gambling account or whatsoever, anything that has a trace to your main assets shouldn't be in any way connected to any other projects, whether you trust them or not. When you connect social media accounts, they have the same rights as you do over that account and can log you out at will and takeover the accounts.

Burner accounts are extremely necessary to reduce the activities of fraudsters from affecting our lives and assets.  In social media applications, it helps for precision of activities and helps not only to reduce the noise in our personal accounts, but also maintain professionalism. Then you can use your burner accounts whenever you wish to catch cruise.

Whilst there are many wallets in playstore and app store, the important question is are they safe wallets, are they open source and have they been reviewed by a lot of members in the community. But not just that, there are also a lot of phishing wallet applications in these platforms, so you might lose your funds once your import you wallet into them. Download crypto wallets only from their official websites and download only good wallets that are open source and non custodial.

I am very picky when it comes to airdrop and I only join testnets from big projects in the range of Arbitrum and Mantra like projects and I have done some farming before, I dare not use any wallet than my burner wallet, the chances of compromising this wallet is pretty low because I am still careful with farming and airdrops but I feel that even farming is best on such wallets.

My burner wallet still have some ETH just for emergency purposes and its been like two years now but no issues at all, I have some staking even happening on the wallet and I don't mind very much because the amount is not alarming, I just want to keep my main wallet out of anything that comes with connecting with any website or platform.

What are you proposing? A different wallet, making it the third, for farming and staking? Because that's what I can think about, you never made mention of any better idea than saying farming not sitting well with burner wallet for airdrops.

Careful!

There are many unofficial crypto wallets on play store and others, do not use the store search engine to find any bank apps or crypto wallets, you can end up with a fake app, I made this stupid mistake last year and i lost some BTC.

Now I don't recommend the use of any app stores to find crypto wallets, it's better to visit the crypto wallet official website and this will direct you back to the right crypto wallet on Play Store.

It's not a bad idea to use a separate crypto wallet for connecting to any websites or even those new and old dex, and this is highly recommendable for those who are into Airdrops, Testnets, and Minting, even those who are into farming.

This is one thing that has taught me a great lesson concerning wallet connection in several website where they do asked to connect and link our wallet to the site at then there was no exposure on how to guide ourselves properly and we fell victim of this type of scam. At later run i discovered that what scammer does is that they will go create a fake site and then launch a fake airdrops asking applicants to go link their wallet to be able to claim their rewards without their knowledge of wanting to hack them, and the worst thing is that what they do is to make price very attractive to people in a way that it will be hard to reject whatever amount an applicants has accumulated from the site at this they will be triggered to connect their wallets.

Overly out of 60 to 70 percent of applicants are being thrilled with the whooping sum of the rewards while converting to usdt or to their local currencies they won't mind whatever it may cause them and they are will to sacrifice other thing in their wallet just for them to claim their rewards especially those fake NFT's worth $5k or $20k these prices looks unrejected while viewing them your wallet and you can be likely to get trapped over there without knowing they did that get your account swipe off.

Thats good or nice recommendation however if you are farming a good tokens via farming using eth usdc or any funds needed token then burner isnt good. Unless you lr burner holds a lot of fund for the farm. Maybe burner is good only for testnet and some not so clear airdrop projects that you wanted to join or participate.

There are too many wallet on the app store, crypto users can still download other wallets and use for their airdrop and testnet. Some people make the mistake of using their wallet that hold a good amount of their asset to receive airdrop tokens too and that is why they can lose their assets. Trust wallet can be used for airdrops and some other nonserious wallets.

Electrum is only for Bitcoin and for the shitcoins and tokens we have Metamask and that's the best possible option for something OP is suggesting because it doesn't need any extra app, just download the extension set up as many accounts as you want then we can completely avoid risk of wallets getting drained because we gave access to a scam airdrop projects.

 A burner wallet is a Bitcoin wallet that is being used for functions which the user does not have full trust in, you can use them to store your digital assets , receive and make transfer .  The reason why it is preferred for beginners is that a burner wallet is better used in the case of avoiding using your  primary crypto wallet to communicate with a special platform or smart contract in other to have privacy and help you secure your assets,they are used within a limited time and assist you to protect your main wallet. 

To claim airdrop or any promotional offers, you do not need to have a balance in the wallet, so you can use a temporary wallet with enough balance to pay the gas fees, because in most cases you will be asked to link your wallet to a third-party site or service and sign a transaction. When you sign a transaction, a full balance withdrawal from your wallet.
Linking your PancakeSwap and Uniswap wallet does not cause you to lose your balance.

This is why hardware wallet is best for storing coins that you wish to hold for a long term, they are not easily accessible like software wallets e.g metamask and others, that's why you will never see someone using hardware wallet to mint or claim anything.

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This advice isn't for beginners only, even old investors can do stupid things too, they can decide to trust a link some day especially if the link is from a popular well know alt project, what many don't know is that some projects are already under attack by scammers, they will swap the original link for a fake one then game over.

It's will be too late before the team figure out what's going on, this is why you must not click on any links online using your main wallet, always use a different one for claiming and minting, good advice and I totally agree with OP..

I did share a sad story few months ago of someone who ignorantly connected his wallet to a malicious website in other to claim freebies but instead got his entire funds stolen.

You can find it here: Learn from other person's mistakes

The warning is not just for newbies alone, even persons that have been in the crypto space for quite sometime also make this silly mistakes. If you're into airdrops or claiming testnet tokens, it's important to get a dedicated or burner wallet for your collection.

Good suggestion too but not for newbies and beginners just like OP was specific about them. It's better to avoid all these by using the trash wallet. Since there is no limit to how many wallets you can have in one wallet app. And it is not stressful as well to create a new wallet. For now, let just be 2 wallets and then in the future they can have Mutiple wallets for various purposes. It can be for minting, connecting with DEX, smart contract and another to store very large amount of asset. Also, if they are investing, they should have another one. for investmen, this wallet shouldnt be intereacted with most times.

I guess this type of things happens a lot to so many newbies in crypto.

I tried using trustwallet many times and I didn't encounter any problems or issues at all but the difference between other wallets is that trustwallet is a close source wallet compared to electrum which is an open source wallet. I'd recommend you use trusted and legit open source wallet like electrum rather than using close source wallet. You should also know the pros and cons of close source and open source wallets.

I'm a newbie and I have been using trust wallet to store most of my assets,is it safe and secured to store my coins using trust wallet?
I'm looking forward to get advice/opinion from you guys.

       Thank you

If you have a wallet that you manage the security popularly, you then does not need changing wallet eaxh rine, i have been arounf some one sometimes ago that lost alot of money because he never give importance to singles wallet and ge almost make new wallet for each task abd bounty he participated on and as a human, he failed to keep all the tracks and at the end lost huge amount.
The money he lost is almost around $70,000 when the coin got to all time high but he cant trace which wallet or recover it.

But hard it been that he used one highly protected wallet for all his task, there is no way he will lose track and this great opportunity fpr him , but he  ans this, even though I am not into bounty.

Any task one is partaking in as a beginner or an experienced cryptopreneur, you should trade with cautious when you are asked to connect your wallet to get your reward or be eligible for some airdrops or other gifts after completing your task. A lot of people have lost their all time savings because of some little rewards they want to mint and add to their total savings. No amount of airdrop is worth you connecting your main wallet to a site to get your reward.
This space is full of smart people that are always on alert to look for the small possible mistake of newbies who don’t understand the space very well. It is very important to learn and gain a lot of knowledge before risking any of your money in the space. It is very certain that everyone came for the lots of rewards that is on this space and for you to get some, you don’t have to risk your main savings for that. Burner wallet should be a necessity for all those things and shouldn’t be under probability to use.

this tip is very useful for those who are currently taking part in the testnet, because in many projects they ask participants to connect their wallets to mint tokens. but unfortunately they don't know that when they give authorization to the website, the website has access to the wallet and the possibility of the wallet being drained is very high. when this happens, the participants will not be able to do anything else.

so instead of risking your main wallet to participate in these campaigns, it is better to use a burner wallet as said, because the wallet is only used once and when the campaign is finished and you have got the tokens you can throw away the wallet and create a new one. but make sure that you have saved the private key, who knows maybe you might need it later.

Phishing site is one of risk.

Another risk is your active wallets will be target of scam tokens. They will send you some chunks of tokens with unverified token icon, if you interact with their smart contracts, you are not smart and will lose money in that wallet.

Airdrop Scams in Crypto and How to Avoid Them

With this bull run sure theres are a lot of projects that will rise to promote their coins, their NFT, etc, and we cannot deny this hype there are a lot of projects that make a rug pull, scams or just a replicate, so be careful when you are trying to connect to their platform, and with the web3 we are now using those wallets to access to sign in, so if you are active with this kind of activity better to have a burner wallet, to prevent your assets getting stole with this phishing sites. Before this bullrun happens I'm doing the same thing, just making a transfer of assets to a particular wallet so that I'm just okay to to transact so still most of my funds are safe in the other storage.

In addition to this, it think it will also be a good idea to make use of a separate wallet for these bounties offers and not the same kind of wallet for your main holdings as well as the devise used, make use of a separate device for bounties and your bitcoin should be contained on a device not connected to any of these, in which your wallet is, we have to make a good practice in other not to be scammed by any chance, burner wallet is a good means to start with.

If newbies do task for airdrops on testnet, they can use wallets for testnet tasks. Nothing to lose with testnet tasks and wallets used for it.

If newbies do task for airdrop for main net, they can use other wallets only for main net tasks. These wallets must not be ones they use to store their funds. If they receive airdrops, they can swap it to stable coins and  move it to their main wallets for fund storage.

They can use smart contract revoke tools too
How to revoke token approvals
https://etherscan.io/tokenapprovalchecker
https://revoke.cash/
https://app.unrekt.net/

Yeah a burner wallet can only secure your funds against some minimal risk like wallet connect attack. So Instead of the whole route of getting another phone or device, it will be best to actually consider a cold wallet instead because the amount of an extra device is most likely the same. Instead of using two hot wallets with same risk it will be better to go fully to a cold storage instead

Yep burner wallet is important if you want to click or access something that might be untrustworthy, but don't forget to consider secondary phone too. Most people hold their coins in hot wallet, so if someone choose to connect a site using their burner wallet, you might think they won't able to get anything from your wallet because you don't own any coins. But if it's a malware, they could access to another of your wallet.

I think whatever you said in this thread is very true, and I also believe that each new user should do something like that. I would consider such wallet as temporary wallet which's in your possession but it isn't used to store your Bitcoin which you're buying using a DCA method, or by allowing a certain amount per month for Bitcoin accumulation.

I personally don't think that newbies can earn good amount from airdrops but you're right that most newbies want to earn something and for those a temporary wallet could be a better solution. In fact, I believe that for newbies bounties are much better than airdrops as they doesn't require much effort and can pay some good amount. And, I believe the ones who are after bounties may also follow a similar approach.

I believe that many newbies that are coming into crypto today are not all well funded, many can't afford to DCA into any crypto projects, and they are left with a choice to hunt for free tokens through testnet tasks and airdrops, I started this way too and damn, it was a great time to be alive in 2017.

If you are new to crypto and airdrops and testnet are a must for you, please consider a burner wallet, or name it anything you want, e.g spare wallet, trash wallet etc.

This wallet must be use as your shield on the battle field, whenever you plan to join some tasks online, claim tokens or use a new Dex, it's smarter to consider using your burner wallet, whatever will happen happens to the burner wallet.

Someone very close to me got his wallet drained because of an NFT mint, the mistake he made was using his main wallet to do the minting, main wallets are meant to stay offline, even if you have to sell your coins in your main wallet I recommend moving some part into a burner wallet first and use the burner wallet to connect to the likes of PancakeSwap and Uniswap, today we have so many Dexes, just to be safe its better to go this route.

Let your burner wallet do the trades, the mint, and the free claims for you, this simply keeps you a step away from losing the digital assets in your main wallet.