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Glutius (OP)
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May 14, 2016, 02:02:25 PM |
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I've been wondering for a while about this. Why do people do it? I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time.  An online wallet has too much security for this. Like Two-Step Verification, or a pin code, etc.. |
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fenican
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May 14, 2016, 02:19:17 PM |
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Actually the online wallets are MUCH less safe. A hacker, for example, might gain control of the server and trick you into sending your private key / pass phrase or, if the private keys are stored on a server they could just take them.
Local solutions, preferably offline, are much more safe since the only way a hacker could get access is by breaking into your home. Given most of the hackers are in China, it's kind of unlikely they are going to buy a plane ticket, get a visa, fly to your country, try to find your paper wallet, etc....
By contrast, very likely thousands of them are attempting every minute to break into online wallet sites and hack them.
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Soros Shorts
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May 14, 2016, 02:28:37 PM |
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You need to trust the company running the online wallet and managing your private keys. Just because you need 2FA and PINs to get to your coins does not mean that some system admin cannot just copy your private key or coins directly from their servers.
Edit: by "online wallet" I take it that you mean a web-based wallet and not a wallet running on your local computer that is online, e.g. Bitcoin core. A local wallet is safer but still susceptible to trojans and keyloggers.
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biggus dickus
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May 14, 2016, 02:42:51 PM |
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Online wallet providers like blockchain.info make occasional mistakes that could result in your Bitcoins getting stolen. In 2014 a guy by the name of johoe discovered blockchain.info made a programming mistake (reusing R values) that made it easy to calculate the private keys of its user's addresses. He calculated the private keys to all the vulnerable addresses he could find and moved the Bitcoins to a new secure address. Afterwards he contacted blockchain.info and paid them back. If he'd been dishonest he could have stolen those Bitcoins. "Every bitcoin transaction is signed by two values – 'R' and 'S' – which prove that the sender knows the private key. If the same R value is used twice, the private key can be easily computed from the signatures alone." http://www.coindesk.com/good-samaritan-blockchain-hacker-returned-255-btc-speaks/ |
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BitcoinHodler
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May 14, 2016, 03:54:02 PM |
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I've been wondering for a while about this.
Why do people do it? I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time.
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An online wallet has too much security for this. Like Two-Step Verification, or a pin code, etc.. this doesn't make sense to me, when you have your wallet online (web wallet or any desktop wallet which is connected) you are at much higher risk than storing it in paper form. how can paper be stolen? they have to break into my home and steel a piece of paper!!! |
Holding Bitcoin More Every Day
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BellaBitBit
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May 14, 2016, 03:57:11 PM |
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Bitcoin on paper or file in your own home off of your computer is the most secure way to store bitcoin. You just need to protect the hardcopy - laminate, put in a safety deposit box at the bank, or whatever is the most secure for you.
Bitcoin stored at online wallets is risky as the wallet can have issues and nothing "online" is really secure and can be hacked.
If you do use online wallets ALWAYS enable 2FA (Two Factor Authorization).
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I love Bitcoin
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quintiilieo
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May 14, 2016, 03:58:19 PM |
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Because in the Bitcoin wallet in site is not safe i think that is their reason why they store on a file or on paper. Thats only the reason that i know because no system is safe like in the hacker movies. And if i have bigger bitcoin i dont use bitcoin wallet in bitcoin site because i want to keep it on paper wallet so that i feel safe.
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Cuidler
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May 14, 2016, 04:06:06 PM |
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Two-Step Verification is not as secure as most people thinks, email or SMS can be viewed/modified by hacker if your smartphone is compromised.
The most secure are offsite solutions like hardware wallets and properly used paper wallets. Actually hardware wallets are much more secure than any online banking I know of (they still use insecure Two-Step Verification methods)
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iv4n
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May 14, 2016, 04:18:05 PM |
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Online wallet providers like blockchain.info make occasional mistakes that could result in your Bitcoins getting stolen. In 2014 a guy by the name of johoe discovered blockchain.info made a programming mistake (reusing R values) that made it easy to calculate the private keys of its user's addresses. He calculated the private keys to all the vulnerable addresses he could find and moved the Bitcoins to a new secure address. Afterwards he contacted blockchain.info and paid them back. If he'd been dishonest he could have stolen those Bitcoins. "Every bitcoin transaction is signed by two values – 'R' and 'S' – which prove that the sender knows the private key. If the same R value is used twice, the private key can be easily computed from the signatures alone." http://www.coindesk.com/good-samaritan-blockchain-hacker-returned-255-btc-speaks/I didn't heard for this before, actually this is very interesting story. Good samaritan is true headline, 255 bitcoins is very big amount. I wonder did he get some nice prize for his discovery. With big amounts people should be very careful. I use online wallets for everyday needs and transactions but big stash is hidden somewhere. |
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SFR10
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Crypto Swap Exchange
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May 14, 2016, 04:22:23 PM |
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People mostly do it as a safer option to storing their private data's online since anything present in the online world, has it's vulnerabilities and could lead to breaches that would make information's being leaked to hackers. Regarding the 2FA, there have been even some complications that lead to users being locked out of their own accounts due to this particular option and regardless of it's failures (on occasions), it doesn't eliminate hackers chance of getting their hands on people's account and it rather just adds a layer of security over what it is. Storing in a file could also not be that safe since if left on a computer then it's still not safe (unless completely offline) and lastly on a paper, there's the possibility of losing it or someone stealing it from you so I guess what everyone's doing, is just choosing whats best way to protect what they have.
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jtipt
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May 14, 2016, 04:26:30 PM |
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I guess it's for extra security as in it will never be linked to Internet or anything digital so it can't be hacked in any way. As far as you are talking about it getting stolen, it will be just like any other fiat currency you need to keep it safe the same way you keep your cash.
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Kprawn
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May 14, 2016, 04:29:38 PM |
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Paper wallets at this stage, is the next best option to keep your coins safe for cold storage. If you want to use it daily, you should go for a hardware wallet like Trezor. These online wallets with their
2FA are a bunch of bul#@$$%% and I would not trust them with huge amounts of coins. It is your responsibility to store that private key somewhere safe. If you leave your wallet with your credit
card or your debit cards on your dashboard in your car, you are making it easy for the thiefs... The same goes for paper wallets.... store them in a safe place, and you will not lose any coins. How
difficult could it be to hide a piece of laminated paper?
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Junko
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May 14, 2016, 04:57:56 PM |
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For extra security and peace of mind.
If you have an amount of bitcoins that you don't plan on touching or spending for an extended period of time, then may as well put in a paper wallet and keep it away in a safe place.
Also if one has a large significant amount amount of bitcoins, like thousands or tens of thousands or hundreds of thousands or millions, I imagine they would be constantly worried if their holdings are safe if it was stored online, whether in a wallet(s) or on an exchange. Unless they were actively trading that full amount, of course.
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sana54210
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May 14, 2016, 05:24:49 PM |
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I'm confused OP, you've been wondering about it? If you actually took quite the time to do a thorough search on this forum plus on Google, you'll see why many of us holders use paper wallets.
And apparently, the user above me answered the question.
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unamis76
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May 14, 2016, 05:32:56 PM |
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If storing Bitcoin required trust from third parties, we might as well not be using Bitcoin at all... Simple as that  |
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Chris!
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May 14, 2016, 05:49:04 PM |
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...I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time.
Oh my GOD no. You're completely backwards on this. No no no. Online wallets are all centralized. Just avoid them. Make 100 copies if you're worried about losing a paper wallet but don't store anything you care about on an online wallet. Look up the 1000s of examples. Just Google it. |
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RoommateAgreement
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May 14, 2016, 06:01:55 PM |
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...I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time.
Oh my GOD no. You're completely backwards on this. No no no. Online wallets are all centralized. Just avoid them. Make 100 copies if you're worried about losing a paper wallet but don't store anything you care about on an online wallet. Look up the 1000s of examples. Just Google it. exactly this is so true. i don't know what OP is thinking that he said this. i would personally prefer to have my wallet generated ofline and kept that way without the help of any third party (online wallets) |
Buying the dip...
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AbsoluteT
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May 14, 2016, 06:06:44 PM |
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I've been wondering for a while about this. Why do people do it? I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time. An online wallet has too much security for this. Like Two-Step Verification, or a pin code, etc.. Online wallet can get hacked or someone on the inside of the company can just steal it. offline is safer because how would they even know you have it |
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Wendigo
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May 14, 2016, 07:27:31 PM |
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Paper wallets laminated and stored in a water- and fire-proof box is the most secure way of keeping safe private keys for me. Hardware wallets are nice too but any hardware may fail in time while good old paper will stay in good condition for decades and more. Also I have been using online wallets since I started dealing with Bitcoin and I have had only positive experiences with them. Online wallets are not more secure than software or hardware wallets but they are more convenient to use for me. Of course my view is subjective however I would rate paper wallets with the highest possible security among the different solutions for keeping private keys safe.
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geopolisch
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May 15, 2016, 08:52:28 AM |
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Well looking at other people posts it seems that they feel unsafe holding their money in e-wallet. I still have confidence though that when bitcoin gains value and becomes known by the multitudes of people around the globe; better secruity systems will be brought out; hopefully to the point that ip addresses have to be authorized to use a wallet.
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