Bitcoin Forum

Choosing a crypto-wallet is usually one of the first challenges that a rookie cryptocurrency user has to face. Of course, the internet is full of guides on how to make the choice. Those guides can be good or bad, reasonable or silly, free or sponsored, and so forth. Still, while such reviews are abundant, there are much fewer pieces speaking about what NOT to choose.

We asked Jeff Fawkes, a cryptocurrency investigator, to take a look at the wallets that he believes people should avoid. In this piece, he speaks about the bad seeds and explains in great detail what is wrong with them and why rookies should keep away. Even though it’s Mr. Fawkes’ personal opinion that we not necessarily share, his investigation shows that at least part of the crypto-community does. And this fact alone makes it worth the attention.

https://forklog.media/dont-trust-the-wallet-in-apartment-23-what-bitcoin-wallets-have-worst-reputation-and-why/

To choose a good crypto wallet, I think the first thing I look at is the security. There are too many people losing bitcoin everywhere everyday, even for big exchanges, lots of bitcoin has been lost.

FreeWallet automatically came into mind and I was surprised that I didn't see it on that article. But I guess it's a good thing as maybe their monthly new users have dropped significantly due to amount of bad publicity it was getting in the past few years.

But seriously, do a quick search about Reddit(and other forum) posts concerning FreeWallet. It's pretty much a custodial wallet that locks your wallet and forces KYC down your throat for some reason.

If you are talking about mobile wallets i will start from xapo wallet and freewallet because they are total garbage, i lost some bitcoin on xapo because i have not my old number and the team failed to fix this for me, i said goodbye to my bitcoin in 2018, the problem with these wallets is the lack of private keys and recovery phrases, the team who built these wallets are the ones who have total access to your fund

No matter how secure the wallet that we use, it is actually better not to keep all assets in one wallet and this thinking might have been widely used by those who care about the security of their assets.

When we care about security, the perfect anticipation step is as I said and if something bad happens then not all of our assets are lost and at least it is left in another wallet.

Well so far I can't consider any bitcoin wallet that has a worst reputation but we should take a look the types of wallet I usually don't use a new free wallets and also an exchange wallet. We all know that the most common target by the attackers are the exchange and we are really not sure where are they store our private keys or is it really safe, there are some cases that the wallets from exchange are getting lost after an attack so we should really be careful on where we should store our assets.

Any wallet stored on a centralized server are going to be the ones that are least reliable, and or, the most prone to being hacked.

This is why exchange wallets (even their cold wallets sometimes) and web wallets that have all user funds pooled into a single super-database are the most commonly breached, simply because the attack surface is so high and the reward is too.

Conversely, it's not worth breaching individual wallets, because of the huge variability between wallets and the difficult in doing so... Risk reward just isn't there.