Web Wallet vs. Local Wallet

[mikewirth]

I see everyone saying: "Don't use web wallets!!".  It looks like some people get hacked at Blockchain.info for example.

OK - fine.  So use the miserable BitcoinQt instead.  But where does bitcoinQt store the private keys?  Isn't it just is some local .dat file?  Why can't a hacker easily find that file and copy my private keys? 

It is hard to understand exactly where the private key is kept in each system.

For example:

Armory	key in local .dat file
BitcoinQt	key in local .dat file
Blockchain.info	key in local file; encrypted key sent over Internet
Android wallet Schildbach	key in
AirBitz	?

[defcon23]

i suggest you to have a look on Electrum..     you probably going to like it 

[mikewirth]

i suggest you to have a look on Electrum..     you probably going to like it 

Where is the private key stored on Electrum?

[coinableS]

But where does bitcoinQt store the private keys?  Isn't it just is some local .dat file?  Why can't a hacker easily find that file and copy my private keys? 

They can. There is malware out there that scans for wallet.dat files. Securing your wallet.dat files with a good password is recommended. These are all hot wallets so they can't be 100% safe. TBH places like coinbase and circle are a really good hot wallet option with 2FA. Personally I use electrum and circle for my hot wallets.

[guitarplinker]

i suggest you to have a look on Electrum..     you probably going to like it 

Where is the private key stored on Electrum?

Electrum prompts you for a password when you first create your wallet. It then uses that password to encrypt all of your private keys, as well as your seed. You then use this password when you try to send funds, sign a message, or anything else that requires your private keys or Electrum seed. For hot wallets Electrum is a decent choice and easy to use. Then again, you could go the Coinbase route because they are insured against bitcoin losses in their wallets.

[coinspacewallet]

Not all Web Wallets are bad, there is always the risk of hacking but Coin Space web wallet is a simple to use and unless someone has access to your passphrase its going to be more secure than any wallet that uses a username and password to login. https://www.coinspace.ch

[Abdussamad]

I see everyone saying: "Don't use web wallets!!".  It looks like some people get hacked at Blockchain.info for example.

OK - fine.  So use the miserable BitcoinQt instead.  But where does bitcoinQt store the private keys?  Isn't it just is some local .dat file?  Why can't a hacker easily find that file and copy my private keys?  

"Miserable" bitcoin-qt has some really smart cryptologists working on it who have made sure that brute forcing the wallet.dat password is difficult. They can't stop users from creating stupid passwords but they've done everything they can do by using a good key stretching function.

90% of the battle is getting access to the encrypted wallet file. The other 10% is brute forcing the password which tends to be easy because people suck at picking passwords.

The reason desktop wallets are considered better is because you would have to be personally targeted for someone to get hold of your wallet file. In the case of blockchain.info it's easier to get hold of the encrypted wallet file because they serve it via their website.

[goosoodude]

I see everyone saying: "Don't use web wallets!!".  It looks like some people get hacked at Blockchain.info for example.

OK - fine.  So use the miserable BitcoinQt instead.  But where does bitcoinQt store the private keys?  Isn't it just is some local .dat file?  Why can't a hacker easily find that file and copy my private keys? 

It is hard to understand exactly where the private key is kept in each system.

For example:

Armory	key in local .dat file
BitcoinQt	key in local .dat file
Blockchain.info	key in local file; encrypted key sent over Internet
Android wallet Schildbach	key in
AirBitz	?

Blockchain.info's problem was not storing the private key, but how it was generating. They were using a particular value which meant that the private keys could be cracked.

[fox19891989]

Generally I use poloniex exchange and btc38 exchange wallet and everything is fine, yesterday I sold all of my btc and withdrew the fiat, so everything should be safe now.

I have used web wallet for over 1 year, I prefer exchange wallet because it's convenient and safe enough, with GA protection and mobile phone confirmation code protection is safe enough.

Local wallet is not as safe as web ones, because some trojans may steal your wallet.dat. Unless you use a cold wallet. 

[NUFCrichard]

Generally I use poloniex exchange and btc38 exchange wallet and everything is fine,

You mean everything was fine for you in this instance.  Webwallets have a degree of trust related to them, i.e. someone can take your coins from you and you can't do much about it.
Poloniex seems ok, but I won't bet with you that they are around in 5years, I have no experience of btc38.

I do think web wallets get a bad rap, but it depends if you trust your security over that of an exchange.  You can google hacked bitcoin exchanges and see that they often lose coins, even the biggest/best/most secure ones.

If you aren't trading, get them offline!

[coinpr0n]

A reason to use web wallets exists for small amounts. They make great and convenient hot wallets. A paper wallet created on an offline computer gives you the keys so you can store it anywhere you wish.

[gentlemand]

Generally I use poloniex exchange and btc38 exchange wallet and everything is fine, yesterday I sold all of my btc and withdrew the fiat, so everything should be safe now.

I have used web wallet for over 1 year, I prefer exchange wallet because it's convenient and safe enough, with GA protection and mobile phone confirmation code protection is safe enough.

That's a totally insane strategy. There's barely been a single exchange that hasn't been hacked. It happens constantly and you're dependent on them not leaving loopholes at their end. The guy running BTer had the same server passwords as his email address.

Confirmation codes only control front end access. If someone gets into the exchange itself everything you have there is gone and that's how most hacks pan out.

[Ryan Collins]

the whole point of Bitcoin is to be in control and not have a third party so go local and if anything happens to your coins its becase of you and no one else to blame.

[notlist3d]

It all depends on how much you keep in your wallet. You should have multiple.   One should be a hot wallet easy to get to with enough for daily purchases maybe a big item or two. 

But you need cold storage to store the bullk of your coins.  You have to treat them like gold and be careful with it.  You can do usb or paperwallet.  Either if don right is a good way to protect your main wallets.

[SureLockLoans]

Web wallet for beginners anything more than that shoould be usiing local storage but not just local but cold storage and have a hot wallet too.

[truthstalker]

Both have their benefits and downfalls online wallets are easy to setup but less secure

[Gisado]

Not all Web Wallets are bad, there is always the risk of hacking but Coin Space web wallet is a simple to use and unless someone has access to your passphrase its going to be more secure than any wallet that uses a username and password to login. [LINK REDACTED]

<popcorns>OK, next advertisement. </popcorns>
Electrum and other HD wallets create 'master seed' based on 12 words and as long as you store it safely, you can feel safe. (Of course you should be able to make a legacy backup but not sure)

[notlist3d]

Not all Web Wallets are bad, there is always the risk of hacking but Coin Space web wallet is a simple to use and unless someone has access to your passphrase its going to be more secure than any wallet that uses a username and password to login. [LINK REDACTED]

<popcorns>OK, next advertisement. </popcorns>
Electrum and other HD wallets create 'master seed' based on 12 words and as long as you store it safely, you can feel safe. (Of course you should be able to make a legacy backup but not sure)

There are risk's that hot wallets have.  A web wallet if there if a flaw is bad, loss of btc.  A cold wallet if a flaw really does not matter since there it's offline and no one can get to it.

I don't care if exchange, online wallet, there is extra risk.

[bryant.coleman]

Blockchain.info is not that bad, provided:

1. You use two strong passwords (Main password + transaction password)
2. You use 2 FA
3. Store backups regularly in offline mode (USB sticks.etc).

That said, offline options such as paper wallets makes it impossible for anyone to steal your coins. But creating them takes time and effort. If you don't want to go for a paper wallet, then just use Blockchain.info, with all the necessary precautions.

[Paraka]

Blockchain.info is not that bad, provided:

1. You use two strong passwords (Main password + transaction password)
2. You use 2 FA
3. Store backups regularly in offline mode (USB sticks.etc).

That said, offline options such as paper wallets makes it impossible for anyone to steal your coins. But creating them takes time and effort. If you don't want to go for a paper wallet, then just use Blockchain.info, with all the necessary precautions.

yes, I aggre with you man,
I think blockchain very good to safe bitcoin
but do not many.