Never trust an online wallet, for those who don't know

[anonymousx]

I have noticed that many started trusting services that doesn't provide it's users with the private keys, the only online service you can trust is blockchain.info wallet, for the fact they provide private keys but even that is still not enough, I hardly use it for small transactions only.

Services such as Xapo is constantly banning users and keeping their bitcoins me included, you can't sue them for that because you agreed to their terms of service which states the following, they also support some countries and not others.

Read the damn https://xapo.com/terms/ and tell me of one thing protecting us and not their asses, you should only agree to that damn thing if they didn't keep private keys, if private keys are stored on your side instead, or they keep it but encrypted so them selves can't see it without your unlock key.

If you choose to use an online wallet for any particular feature such as credit card, please make sure to not use it as a storage for your life savings or big amounts.

Be decentralized, and online wallets should be more transparent about the shit they do in the background, it breaks all the things bitcion was invented for.

About time till bitcoin becomes just another FIAT system of numbers on screen that transfers between people and inside their (accounts).

You have been warned, you can troll, flame and do whatever you want, but at the end of the day you are the one losing their bitcoins.

Be safe.

[neochiny]

Well i used coinbase for my online wallet and
i dont use offline wallet as i dont know how to use it.
well thanks for the advice though...
but i think using online wallet is just fine as long as
its not so big amounts on it.

[ajrah]

I use Blockchain and Coinbase and I never had a problem ever since I started using those 2. I downloaded Armory a month ago but I cant get it running so I give up on it and continue using Blockchain and Coinbase. You just need to know how to protect your coins like using 2fa and don't just rely on what the site offers as protection.

[anonymousx]

Well i used coinbase for my online wallet and
i dont use offline wallet as i dont know how to use it.
well thanks for the advice though...
but i think using online wallet is just fine as long as
its not so big amounts on it.

That ok for small amount but still, coinbase is the same as paypal, they ban and everything, if you really really need an online wallet use blockchain.info, they don't keep your keys, the version they keep is encrypted and they can't use it, it decrypt on client side for signing with salt from server which makes it impossible for browser extensions to sniff it, it does also have google F2A.

Cons of blockchain.info that you can't restore your password if you forgot it, so make sure to write the 12 words of your seed on a paper and you will be good to go, they can be found on "import/export" tab.

[neochiny]

Well i used coinbase for my online wallet and
i dont use offline wallet as i dont know how to use it.
well thanks for the advice though...
but i think using online wallet is just fine as long as
its not so big amounts on it.

That ok for small amount but still, coinbase is the same as paypal, they ban and everything, if you really really need an online wallet use blockchain.info, they don't keep your keys, the version they keep is encrypted and they can't use it, it decrypt on client side for signing with salt from server which makes it impossible for browser extensions to sniff it, it does also have google F2A.

Cons of blockchain.info that you can't restore your password if you forgot it, so make sure to write the 12 words of your seed on a paper and you will be good to go, they can be found on "import/export" tab.

I dont like using blockchain as it has a high transaction fees.
and it takes so long... and also blockchain is always down. thats what i dont like
with it. and yeah.. even in coinbase i can use 2fa and even cp verification in every transaction.
so i think its still safe. but thanks for the information.

[bitbaby]

If you don't own the keys, you don't own the Bitcoins. That's the truth and it has been told many times but people don't bother about it until and unless they get into a problem where they can't access their funds.

Blockchain.info wallet is OK for small amounts but only if you keep back up of your keys, so if some day the site is off-line for some reason, you'll be able to get hold of your funds by importing your keys in another wallet. Coinbase, Xapo, etc. are not wallets, they're service providers and should be used for buying/selling services and not as wallets.

Also, if you have a Desktop and/or an Android device then you don't need to use on-line wallets period, there are wallets which provide much better protection and are much convenient to use. For ex. Electrum, Mycelium.

[lemipawa]

That ok for small amount but still, coinbase is the same as paypal, they ban and everything, if you really really need an online wallet use blockchain.info, they don't keep your keys, the version they keep is encrypted and they can't use it, it decrypt on client side for signing with salt from server which makes it impossible for browser extensions to sniff it, it does also have google F2A.

Cons of blockchain.info that you can't restore your password if you forgot it, so make sure to write the 12 words of your seed on a paper and you will be good to go, they can be found on "import/export" tab.

You are contradicting yourself OP, your thread title says "Never trust an online wallet..." but you recommend Blockchain.info which is an online wallet, but I agree with you, I would go with Blockchain.info than using Coinbase as I've read in some threads here that their account's was closed by Coinbase.

[hasiramasenju]

i use blockchain wallet already since a long time and never had a problem with this wallet and i'm still comfortable using it till now because i never have huge amount of bitcoin so i think it's not necessary to use offline wallet

[letyouearn]

I am using ledger H.W 1 Hardware Wallet to store my bitcoins securely. Never had a single issue using it. I feel, it is the most safe and secure offline wallet,  I ever use to store my bitcoins.

[ranochigo]

-snip-

I dont like using blockchain as it has a high transaction fees.
and it takes so long... and also blockchain is always down. thats what i dont like
with it. and yeah.. even in coinbase i can use 2fa and even cp verification in every transaction.
so i think its still safe. but thanks for the information.

Blockchain.info has a regular network fees of 0.0001BTC/KB which is rather small and standard, even 0.00002BTC/KB can work. Coinbase pays the TX fees for you and you must follow their terms no matter what.
Blockchain.info is not 100% secure either. They are a central validation wallet which means that the users need to rely on them to get correct information about the wallet. They have been quite unreliable and accepted transactions which have invalid signatures[1]. This is a huge risk for merchants who regularly accept Bitcoins through their API. Blockchain.info automatically sends the change back to the original address which could risk the privacy of the users. They have been rather incompetent on their security for the past few years[2][3] and I have migrated from their wallet to Multibit. By keeping your wallet backup on their server, you need to trust them to manage it securely and have a strong encryption.

I would recommend going with greenaddress.it. When using 2 of 2 multisig with them, they send a nlocktime script to users which allow the users to redeem them if they are down. With 2 of 3 multi sig, users keep two of the keys and they can't compromise it in any way. No keys are stored on their server, encrypted or not. With them, you can select the Electrum servers/your own node to verify against and there is no risk of sybil attacks.

For the online wallet, greenaddress.it is one of the best. They can still make unauthorized changes though, like every online wallets go for desktop wallet if you don't want this risk.

[1] https://www.reddit.com/r/Bitcoin/comments/3frn1d/satoshis_coins_have_not_moved_blockchaininfo_is
[2] https://blog.blockchain.com/2014/12/08/blockchain-info-security-disclosure/
[3] http://arstechnica.com/security/2015/05/crypto-flaws-in-blockchain-android-app-sent-bitcoins-to-the-wrong-address/

[BlockEye]

Never use an address from an exchange, Blockchain.info is enough for everyone to use and it's safe.

[crazyivan]

I use Bitgo and have never had a single issue. They even offer insurance option for larger amounts. Highly recommended.

[anonymousx]

That ok for small amount but still, coinbase is the same as paypal, they ban and everything, if you really really need an online wallet use blockchain.info, they don't keep your keys, the version they keep is encrypted and they can't use it, it decrypt on client side for signing with salt from server which makes it impossible for browser extensions to sniff it, it does also have google F2A.

Cons of blockchain.info that you can't restore your password if you forgot it, so make sure to write the 12 words of your seed on a paper and you will be good to go, they can be found on "import/export" tab.

You are contradicting yourself OP, your thread title says "Never trust an online wallet..." but you recommend Blockchain.info which is an online wallet, but I agree with you, I would go with Blockchain.info than using Coinbase as I've read in some threads here that their account's was closed by Coinbase.

No no, I was like if you really are dying to use an online wallet, at least blockchain.info gives you the private keys.
as a personal choice I use multibit for windows and mycelium for android, I would pretty much get ledger and get rid of the hotwallet but for now I will just save in paper wallet.

[MaritiJames3]

For usability you need an online wallet. Bringing your pc to every meeting is just wrong. Sure I try to have a lower balance with my blockchain account, but I need it.
Rather then blockchain.info I would not trust an exchange with it.

P.S. If you look at  the security measures blockchain.info takes and some users take, storing it online in most cases is safer then offline.

[mexicantarget]

Totally agree with you, online wallets can be exploited much easier that offline ones. But in some cases, you're forced to hold your funds in online wallets, depending how often you spend. Not talking about enormous amounts although.

I own a Trezor, so I'm pretty "safe" (I want to believe)

[mtnsaa]

Although I agree the are safety issues with online wallets, exchanges, credit cards and Paypal, I've never had a problem and if they really ban you then there must be something bad with your behaviour. These companies are serious and they don't go around robbing people, it would be an scandal.

[OROBTC]

i use blockchain wallet already since a long time and never had a problem with this wallet and i'm still comfortable using it till now because i never have huge amount of bitcoin so i think it's not necessary to use offline wallet

Well, I once had a problem with a blockchain.info wallet.  I was even using 2FA.  I lost ALL BTC (briefly).  It took some back & forth with them, but I did get my BTC back.  Never explained what happened...

Now I use blockchain.info for small amounts, and for short-term storage for using their SharedCoin service.

blockchain.info's MOBILE wallet has always worked well for me (some 12 transactions).

[Athertle]

Never use an address from an exchange, Blockchain.info is enough for everyone to use and it's safe.

Eh? Take some time to read the thread?

[ranochigo]

For usability you need an online wallet. Bringing your pc to every meeting is just wrong. Sure I try to have a lower balance with my blockchain account, but I need it.
Rather then blockchain.info I would not trust an exchange with it.

P.S. If you look at  the security measures blockchain.info takes and some users take, storing it online in most cases is safer then offline.

You don't need a online wallet for portability. You can easily use a HD wallet and use a wallet which have the same BIP32 deviation path as your desktop wallet. Since all the addresses generated are deterministic, you won't lose any coins.

If you look at the security flaws that Blockchain.info made, I rather store it with an exchange than with them Some exchanges actually have a cold storage and some wallet providers even provide insurance for coins.

[extracoinrome]

-snip-

I dont like using blockchain as it has a high transaction fees.
and it takes so long... and also blockchain is always down. thats what i dont like
with it. and yeah.. even in coinbase i can use 2fa and even cp verification in every transaction.
so i think its still safe. but thanks for the information.

Blockchain.info has a regular network fees of 0.0001BTC/KB which is rather small and standard, even 0.00002BTC/KB can work. Coinbase pays the TX fees for you and you must follow their terms no matter what.
Blockchain.info is not 100% secure either. They are a central validation wallet which means that the users need to rely on them to get correct information about the wallet. They have been quite unreliable and accepted transactions which have invalid signatures[1]. This is a huge risk for merchants who regularly accept Bitcoins through their API. Blockchain.info automatically sends the change back to the original address which could risk the privacy of the users. They have been rather incompetent on their security for the past few years[2][3] and I have migrated from their wallet to Multibit. By keeping your wallet backup on their server, you need to trust them to manage it securely and have a strong encryption.

I would recommend going with greenaddress.it. When using 2 of 2 multisig with them, they send a nlocktime script to users which allow the users to redeem them if they are down. With 2 of 3 multi sig, users keep two of the keys and they can't compromise it in any way. No keys are stored on their server, encrypted or not. With them, you can select the Electrum servers/your own node to verify against and there is no risk of sybil attacks.

For the online wallet, greenaddress.it is one of the best. They can still make unauthorized changes though, like every online wallets go for desktop wallet if you don't want this risk.

[1] https://www.reddit.com/r/Bitcoin/comments/3frn1d/satoshis_coins_have_not_moved_blockchaininfo_is
[2] https://blog.blockchain.com/2014/12/08/blockchain-info-security-disclosure/
[3] http://arstechnica.com/security/2015/05/crypto-flaws-in-blockchain-android-app-sent-bitcoins-to-the-wrong-address/

@Ranochigo, you sounded like one of the competitor's of blockchain (greenaddress.it)!