Oshosondy (OP)
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Merit: 1174
Gamble responsibly
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February 25, 2021, 11:37:21 AM Last edit: February 25, 2021, 06:40:06 PM by Oshosondy |
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The first wallet which is bitcoin core was created in a way to fulfill how other wallets should be created aside from being full client that SPV wallets can not support but have to depend and connect to third party server to sychronize the wallet with the blockchain. Bitcoin core connects and runs from nodes to nodes. This makes full client wallets to be the best privacy wallet. Another good wallet that serves for privacy purpose in a way it coinjoins transactions and make bitcoin transactions mixed with other ones to avoid tracking of addresses is called wasabi wallet, this wallet increase privacy. Those two wallets above are very important and their functions should be known, but the reason people are not using bitcoin core is the over 300 gigabyte of data needed to download the full blockchain while people prefer not to run the pruned version but the full client. I will focus more on simplified payment verification (SPV) wallets because they are the ones used by people commonly today.
SPV wallets This are not full client that run from nodes to nodes, but depends on central server to synchronize the blockchain, they are the common wallets we are using today. When bitcoin and crypto was at their earlier age, most SPV wallets are having the best feature of wallets, but later, there are many more modifications that makes many wallets not to be good, examples are some open source wallets that gone close source. Which is the reason I have to list the features good wallets should have.
1. Good wallets should be open source wallets, if close source, you will not know the code used to make the wallet working, you will not know if the wallet have codes that can steal from you or that can attack your device. The close source can be good today, but later can have malware inputted.
2. Self custody, these are noncustodial wallets, some wallet are not, they are custodial, it means you do not have the private key, it mean you do not have complete control over your coins. There are many cases the third party that gives custodial wallet will block someone's account in a way the person will not be able to access it. Also the third party have the private key which can be used to control your coin.
3. Good wallet should support segwit addresses, otherwise you will waste funds paying high fee if using legacy wallets that do not support segwit. There are many people wasting bitcoin on fee because they are using legacy wallet that do not support segwit. Any wallet that do not uograde to segwit should not be used.
4. Coin control, it may not be necessary, but also useful as you can select the address you want to spend from.
5. Wallets that support RBF, it means replace by fee, latest wallets should support this to help in case of stuck transactiyon in a way the fee will be increased to make the transaction get confirmed in time. On some wallets that do not support RBF, the person will have no option than to use CPFP which the fee that will be needed will be higher (multiply by two), may not be possible if the receiver can not spend unconfirmed transactions also if the sender do not have bitcoin change address while sending.
Ignorance makes people to use a wallet that pays high fee when there are good wallets like electrum that support segwit. You can use any wallet you like, but know that not all wallet that people say are reputable are reputable, many are close source, many do not support segwit, most do not support RBFwhich are very important.
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