Wallets - Coinbase Vs Mt.Gox Vs Blockchain Vs Local Client?

[benyben123456]

Hi friends.
Sorry if this was asked before.

I have bitcoins in a few locations: MtGox, Coinbase, Blockchain (wallet).

I am wondering what is the best way to store.
Should I trust these sites? Or should I download a client for my PC?

Advice would be appreciated.
Thanks!

[Barek]

For large amounts, you may want to be the only one with access to your coins.

MtGox/Coinbase keep the coins for you and you ask them to transfer them to a wallet. You have no control over your coins.

Blockchain.info does not store your private key, but rather allows you convenient handling of your wallet through the browser. Theoretically, they could alter the Javascript your browser executes and misdirect funds, for example.

http://bitcoin.org/en/choose-your-wallet

[tvbcof]

Hi friends.
Sorry if this was asked before.

I have bitcoins in a few locations: MtGox, Coinbase, Blockchain (wallet).

I am wondering what is the best way to store.
Should I trust these sites? Or should I download a client for my PC?

Advice would be appreciated.
Thanks!

I use them all except for Mt. Gox who is unreliable as a business partner (not necessarily from security point of view.)

I primarily rely on paper-wallet (like constructs) stored in such a way that I myself cannot even access them without a lot of legwork which includes traveling.  I split up the values years ago so I did not have all my eggs in one basket.  The data necessary to access this value never touches an on-line computer until just before I wish to utilize the value.

The other services (Coinbase and blockchain.info) I only trust with the funds I am willing to lose.  I break values between both so I am not subject to full loss of my working capital unless both go down simultaneously.

I would like to split my values even further than between other vendors and will do so if/when other seemingly reliable options pop up.  Thankfully I never choose to rely on this forum or the Bitcoin Foundation to make decisions about who is reliable (e.g., inputs.io, BIPS, etc.)  I've been around to long to make that mistake.

If you are dicking around with a few BTC, it may or may not be worthwhile to go overboard on security, but even here it might be worth researching and understanding your options since it is possible that the value could rise some more.  Looks like you are doing this.  I choose to consider security measures early just in case the valuations climbed.  Glad I did.

[adrian33]

If the blockchain wallet site disappears, with just the encrypted AES backup file, can you can restore the funds using say Electrum?

[tvbcof]

If the blockchain wallet site disappears, with just the encrypted AES backup file, can you can restore the funds using say Electrum?

In theory.  And disappears for any reason (e.g., they were deemed illegal and the assets seized by the authorities.)

In practice the most likely forms of attack would seem to me to be

 - a careful exploitation by the operator or powerful network player to subvert the JS and harvest the info necessary to obtain the secret keys.

 - user platform based attacks which would do the same.

I would not expect either of these to be a 100% immediate loss to all customers as is the case with more simplistic wallet services (and scams) like inputs.io.  In the former case it would, hopefully, be detected prior to everyone being effected.  Especially those who use their wallets irregularly.  In the latter case, I would expect it to hit a minority of platforms (e.g., just Android users or just Firefox users or some such.)

 - edit: s/Windows/Firefox/ for better illustration.

[bitcoinpsftp]

I would never trust anyone with any money (anyone I don't know well presonally).  They can always come up with an excuse if they get greedy for why your money dissapeared.

I'd use the sites if I thought the chance was very low of defaulting, and that I could make good profit.  But NEVER trust them fully.  IF you're just storing, store it on a paper wallet or something.

[beetcoin]

some people learn their lessons, others continue making them. a lesson most people are presented with early is "don't trust anyone." that's just the way the world works.. if you don't protect yourself, another animal is gonna come in and eat you.

[bitcoinpsftp]

some people learn their lessons, others continue making them. a lesson most people are presented with early is "don't trust anyone." that's just the way the world works.. if you don't protect yourself, another animal is gonna come in and eat you.

Pretty much everyone has a "price".  Whether it be a monetary value, or a different kind of value (life of a family member, etc.), you can make almost anyone do anything, for the right price.  And from there comes the part of greed.  For the right price, people will take from you what is rightfully yours.

[mel2000]

Most of us trust a 3rd party to handle our stored financial assets. Banks, stockbrokers, etc. I don't think mainstream btc users will ever catch on to using offline wallets, and if they do it will be a less convoluted solution like Electrum.

From what I've read here and on reddit, offline wallets are as vulnerable to allowing btc to disappear as much or more than 3rd party online solutions with a good track record.

[Abdussamad]

From what I've read here and on reddit, offline wallets are as vulnerable to allowing btc to disappear as much or more than 3rd party online solutions with a good track record.

No they are not.