BitGo.com - full control over your Bitcoin?

[iensu]

I just set up a wallet on bitgo.com

The main reason isthe instant transaction with their partners kraken, bitstamp and so on.

Just realized that they charge a 0.1 % fee for every transaction, even for ordinary transaction without the instant feature.
Does't sound much at first. But Quite a high fee when transmitting 10 BTC  

Did i get it right that with the pdf you download while creating the wallet, you get one of the 3 secret keys and one encrypted public key to get a second privte key stored at keytern.al?
I would feel safer to have the second private key under my control...

So in case bitgo.com is down or disappears for any reason you'd be able to move all your BTC to another wallet address?

But how is that possible if bitgo.com creates a new wallet adress for every time you receive BTC?

https://abload.de/img/2017-02-1900_29_14-bif7zu8.jpg

Wouldn't you need all those private keys of those addresses?

Please enlighten me!

PS: think about bitcoin going to the moon and having 1,000,000 Dollars on BitGo. wouldn't be cool to pay 1,000 Dollars for moving them. Isn't it just possible to use the private keys to do that and avoid the fee?  

[7dsmproject]

Essentially, the online wallet service hold the private keys for you and perform the transaction for you. You only put trust on them and them actually hold the bitcoin for you. In the case if the service goes down, you lose all you bitcoin with it.

Start learning how to generate a paper wallet or purchase a hardware wallet if you are interested to store your bitcoin long term...

[cengsuwuei]

what do you meant bitcoin price can incraese one million dollar
if accident bitcoin price incraese to one million, bitcoin die, same youre write very sending fee can incaese 1000 dollar

about bitGo.com service i think is not good because not open service private key

[Quickseller]

Using BitGo is not something I would personally do. BitGo signed transactions totaling ~119,000BTC out of Bitfinex when as of the prior day, the daily limit for signing transactions was only 2,000BTC, and the change to the limits were made via the same API that transactions were sent to BitGo.

Yes, the 0.1% fee is very high, and is how they make their money. This is compensation for signing transactions that you send to them.

If BitGo were to disappear, then you should be able to get your second private key from that other service (I am not familiar with keytern.al). Provided that keytern.al and BitGo do not collude with each-other, neither will be able to access your funds, however you still do not have full control over your private keys for no good reason, IMO.

The simple version of how a new address is generated each time you receive BTC is that all three of the private keys are combined to create a HD "wallet" so that 2 of the 3 private keys can sign transactions from any address that is generated.

[~Bitcoin~]

0.10% is really high if you have to move large number of bitcoins daily and also there are limited places/merchants where bitgo is accepted. So you may end up paying more fees in bitcoin transaction just for sake of so called instant bitcoin transaction.

Also to have full control over your bitcoin, paper wallet and hardware wallet is perfect choice. You will be only one who will have access to a single private key of your bitcoin address so there will be no any risk about involvement of third party.

[crazyivan]

Excellent wallet but a really, really high fee. I d pass on this one until they reduce that fee to match their competition.

[favdesu]

- Too expensive
- "bitgone" incident

but I really like their 0 confirmations idea

[bravehearth0319]

I just set up a wallet on bitgo.com

The main reason isthe instant transaction with their partners kraken, bitstamp and so on.

Just realized that they charge a 0.1 % fee for every transaction, even for ordinary transaction without the instant feature.
Does't sound much at first. But Quite a high fee when transmitting 10 BTC  

Did i get it right that with the pdf you download while creating the wallet, you get one of the 3 secret keys and one encrypted public key to get a second privte key stored at keytern.al?
I would feel safer to have the second private key under my control...

So in case bitgo.com is down or disappears for any reason you'd be able to move all your BTC to another wallet address?

But how is that possible if bitgo.com creates a new wallet adress for every time you receive BTC?



Wouldn't you need all those private keys of those addresses?

Please enlighten me!


PS: think about bitcoin going to the moon and having 1,000,000 Dollars on BitGo. wouldn't be cool to pay 1,000 Dollars for moving them. Isn't it just possible to use the private keys to do that and avoid the fee?  

This might gonna be too risky to do it. By putting all bitcoin in this site as well,  Private keys is very important for every sensitive transaction regarding about the concern of yours. That's why learning is important in this matter, better for you to do some research more in private keys and using paper wallet.

[mbelshe]

I just set up a wallet on bitgo.com

The main reason isthe instant transaction with their partners kraken, bitstamp and so on.

Just realized that they charge a 0.1 % fee for every transaction, even for ordinary transaction without the instant feature.
Does't sound much at first. But Quite a high fee when transmitting 10 BTC  

Did i get it right that with the pdf you download while creating the wallet, you get one of the 3 secret keys and one encrypted public key to get a second privte key stored at keytern.al?
I would feel safer to have the second private key under my control...

When you create the wallet, you have the option of where to store the second key.
* If you choose keytern.al to store your second key, you can get BitGo Instant capabilities.
* If you store the key yourself, then BitGo Instant wouldn't work because you could double spend yourself.

The trust point you have here is that keyternal and bitgo are not working against you or related.  We aren't.  Two separate companies.

So in case bitgo.com is down or disappears for any reason you'd be able to move all your BTC to another wallet address?

But how is that possible if bitgo.com creates a new wallet adress for every time you receive BTC?

We have open source utilities to do this (see the github repo for BitGo and test it out yourself!).  The different addresses are created using key derivation; key derivation is a cryptographic method where you can generate a new public key for another key with only the public portion.

In other words:
   f(k1) = k2    (doing this operation on the public key yields a new public key)
   f(K1) = K2   (doing this operation on the private key yields a new private key, corresponding to the same, new public key, k2)

Wouldn't you need all those private keys of those addresses?

Nope!

Please enlighten me!

PS: think about bitcoin going to the moon and having 1,000,000 Dollars on BitGo. wouldn't be cool to pay 1,000 Dollars for moving them. Isn't it just possible to use the private keys to do that and avoid the fee?  

Yes it is.  With BitGo, we never hold your keys; if you want out, you can go back to the chain and do it yourself at any time; including to just avoid fees, if that is what you want to do.

Hope this helps!

Mike

[mbelshe]

Essentially, the online wallet service hold the private keys for you and perform the transaction for you. You only put trust on them and them actually hold the bitcoin for you. In the case if the service goes down, you lose all you bitcoin with it.

This is not true.  If BitGo goes down you still have all your bitcoin due to the 2-of-3 system.  BitGo is non-custodial.

Mike

[iensu]

Thanks for explaining Mike, I got the idea.

So I just tested the Wallet recovery and it didn't work out for me:

https://abload.de/img/2017-02-2001_40_25-re0br37.jpg

I'm sure that I used the same password as for logging in on my BitGo.com wallet, as I'm using a password manager.

Did I get anythong wrong?

[ranlo]

Essentially, the online wallet service hold the private keys for you and perform the transaction for you. You only put trust on them and them actually hold the bitcoin for you. In the case if the service goes down, you lose all you bitcoin with it.

Start learning how to generate a paper wallet or purchase a hardware wallet if you are interested to store your bitcoin long term...

This. If you had access to the private keys, you wouldn't need them and would be able to send fee-free. Their money comes by limiting you to their service.

[European Central Bank]

stupid fee and they let bitfinex give away tens of thousands of bitcoins. anyone can do way, way better than this for themselves.

[michkima]

I would always advise to not use online wallets whatever their features are. The online wallets have too much control over your account that it's really scary to even leave your money on there. There have been countless times that there is a problem using these accounts. There have been issues the online wallet closing accounts without prior notice and giving out the information of their clients.

[ranlo]

stupid fee and they let bitfinex give away tens of thousands of bitcoins. anyone can do way, way better than this for themselves.

Is this fact? I did see another post claiming the same thing, but wouldn't that essentially also put them at fault for the Bitfinex "hack" (if they were supposed to stop the tx and didn't)?

[squatz1]

I've seen that they have a pretty high fee but everything that they have going for them is pretty nice for big business and personal people who like to handle all of their bitcoin stuff separate by tracking it with different address.

Excellent wallet but a really, really high fee. I d pass on this one until they reduce that fee to match their competition.

What other companies really come in comparison to BitGo as I really wouldn't want to put Blockchain.info in the same league as it really isn't.

stupid fee and they let bitfinex give away tens of thousands of bitcoins. anyone can do way, way better than this for themselves.

They didn't let Bitfinex give away tens of thousands of bitcoins, Bitfinex allowed BitGo to give it away because of the way they set up their security. I hate seeing BitGo get the blame for all of this, it's horrible.

[Catmony]

What other companies really come in comparison to BitGo as I really wouldn't want to put Blockchain.info in the same league as it really isn't.

Bitgo doesn't give full control because you will not have private key.
Blockchain.info allows you to have full control and wallets are client side encrypted.

Bitgo charge high fees in % basis but blockchain.info charge normal bitcoin fees and all of that fees go towards transaction fee not to owner's pocket.  

Bitgo looks more like centralized bitcoin wallet justlike coinbase but their idea of instant confirmation sound interesting.

[European Central Bank]

I've seen that they have a pretty high fee but everything that they have going for them is pretty nice for big business and personal people who like to handle all of their bitcoin stuff separate by tracking it with different address.

Excellent wallet but a really, really high fee. I d pass on this one until they reduce that fee to match their competition.

What other companies really come in comparison to BitGo as I really wouldn't want to put Blockchain.info in the same league as it really isn't.

stupid fee and they let bitfinex give away tens of thousands of bitcoins. anyone can do way, way better than this for themselves.

They didn't let Bitfinex give away tens of thousands of bitcoins, Bitfinex allowed BitGo to give it away because of the way they set up their security. I hate seeing BitGo get the blame for all of this, it's horrible.

If it was a half decent security solution, enabling a client to give away coins that you're contracted to secure shouldn't be possible.

[Ansmdr]

What's the best wallet for litecoin in your opinion?

[stomachgrowls]

What other companies really come in comparison to BitGo as I really wouldn't want to put Blockchain.info in the same league as it really isn't.

Bitgo doesn't give full control because you will not have private key.
Blockchain.info allows you to have full control and wallets are client side encrypted.

Bitgo charge high fees in % basis but blockchain.info charge normal bitcoin fees and all of that fees go towards transaction fee not to owner's pocket.  

Bitgo looks more like centralized bitcoin wallet justlike coinbase but their idea of instant confirmation sound interesting.

Even on that 0.1% fee is already too much specially when we do make big amount transfers and i dont like for those fees to go on owners pocket.  . Having no possesion on your private keys do always accompanied with the risk for you on not having the possibility of recovery once the service shuts down unlike on other wallet that keys will really be the important thing that must have. Id rather choose coinbase with no doubt than on bitgo.