Why I dont worry too much about using closed source wallet

[_BlackStar]

People were saying the same thing about FTX, Cryptsy, MtGox, and a whole lot of other centralized services too (which is what closed source wallets like TrustWallet are like). They were saying "they have been running for X number of days, have Y number of users and Z million dollars go through them; it is impossible for them to run away". The rest is history...

Besides it is not always about the company itself scamming its users, or not all its users (ie. selective scamming), but another risk is a third party hacked exploiting the backdoors in the closed source software that the company has placed in it (intentionally or unintentionally) and stealing your funds. Kind of like Windows where the risk is not only Microsoft hacking you but other hackers exploiting the backdoors Microsoft has placed in their product to hack you.

I hope OP can wisely and understand what you have explained about the risks of closed source wallet.
He just needs to know that not all cases of loss of funds are done by the company itself, but in most cases it is third parties who do. Just like the hacking of user funds from Binance and other exchange, it wasn't CZ who did it but third party ^[hackers] through the back door managed to find a way.

I also wish the OP didn't bother replying after reading this one.

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[Lafu]

The reason I dont worry too much of it and dont bother to put there.

Is because the chances of getting hacked by the company or other is extremely low.

Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.


People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

1 company cant empty 10 million wallets so fast.

Sorry but that is the biggest nonsens i have readed long time ago.

First , its exactly the closed source code you should be worried about , there can be all in it that can make a big damage.
There would be not enough time for all the people that using the closed source wallet when there is something going on.

For example : A  a special code in the closed source code can open doors for malware and other programs.
Once active it takes only a few seconds that they get all they need and more.
Bank Account details , Wallet and the Keys , all your passwords and loggin details where you ever logged in and so on.
If you noticed what happens the magic is already made and your done.

[Riocasino]

The reason I dont worry too much of it and dont bother to put there.

Is because the chances of getting hacked by the company or other is extremely low.

Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.


People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.

1 company cant empty 10 million wallets so fast.

Sorry but that is the biggest nonsens i have readed long time ago.

First , its exactly the closed source code you should be worried about , there can be all in it that can make a big damage.
There would be not enough time for all the people that using the closed source wallet when there is something going on.

For example : A  a special code in the closed source code can open doors for malware and other programs.
Once active it takes only a few seconds that they get all they need and more.
Bank Account details , Wallet and the Keys , all your passwords and loggin details where you ever logged in and so on.
If you noticed what happens the magic is already made and your done.

Everyone here tells it nonesense without understading in secruity to back up your claims.

 give proper reasons. Back it uo with facts.

Keylogger work on a way that it sees what you typing.

If my trustwallwt pass  852852 and the i download conpronised virsus suddenly on their new update   it only see  what i type 852852
Not my seed.

It also need to see the  seed.



Bank accounts details and email have high security 2fa and ip match. Attackers cant do nothing without an access to my email and he will never have it eben he has password.


Maybe im wrong but youll give goofy explanations without knowledge about secruity amd compared app like trust to ftx when they have different technology.

[Rikafip]

The reason I dont worry too much of it and dont bother to put there.
Is because the chances of getting hacked by the company or other is extremely low.

Tell that to millions of people that lost money in FTX and Celsius. In the end, why take extra chance for losing your money when there are alternative open-source solutions on the market.

1 company cant empty 10 million wallets so fast.

You think that those kind of things are done manually, one by one in order to give enough time to others to withdraw their money? If company performs exit scam, you probably won't have time to do anything and will only realize when its too late.

[Riocasino]

The reason I dont worry too much of it and dont bother to put there.
Is because the chances of getting hacked by the company or other is extremely low.

Tell that to millions of people that lost money in FTX and Celsius. In the end, why take extra chance for losing your money when there are alternative open-source solutions on the market.

1 company cant empty 10 million wallets so fast.

You think that those kind of things are done manually, one by one in order to give enough time to others to withdraw their money? If company performs exit scam, you probably won't have time to do anything and will only realize when its too late.

This is just ignorance compared web app like FTX to online wallet they work on different technology. if you dont know what you talk about just be quite and dont try to act smart.

Maybe only 1% of the people here know what they r talking. all the others just throw assumptions into the air.  


Give me real reasoning if you know backened .

[Marvell1]

It's fair to say that Trustwallet hasn't had any issues or complaints from users so far, it's still safe, but you shouldn't trust it too much just because it's a company and has 10 million users. You need to know that anything is possible, especially for centralized or closed-source products, it's a lot riskier because we don't know what they will actually do with our assets. Nowadays, most people tend to use open source software rather than closed software because of its transparency. You should learn more about the difference between these two concepts.

[Pmalek]

If you've checked your nmemonic works in other wallets too for recovering the funds then you have some extra safety (because that IS open source if it's using bip39).

I wouldn't recommend exporting and importing your seed into multiple wallets. Each new software that holds your seed increases the possibility of an attack. If you have your seed in one software wallet, you lose your money if something happens to that one wallet, no matter if it's user inflicted or the result of a hack, exit scam, etc. But, if you have the same recovery phrase imported across three different wallets, you now have the security of three apps to think about. Each one could in theory be hacked, have vulnerabilities, have malicious developers, and so on. 

[Solosanz]

This is just ignorance compared web app like FTX to online wallet they work on different technology. if you dont know what you talk about just be quite and dont try to act smart.

Maybe only 1% of the people here know what they r talking. all the others just throw assumptions into the air.  

Give me real reasoning if you know backened .

You need to read this [1] it's just one type of malicious attack while there's many kind of types and every year there's always a black hat hacker creating new malicious stuff [2]. I don't think everyone need to become a coder and can read every source to recommend someone to use a good thing, it's similar like you're not a victim of ponzi scheme, do you think ponzi scheme is legit and not scam? especially the one who said there's no risk.

[1] https://cointelegraph.com/news/hodlers-beware-new-malware-targets-metamask-and-40-other-crypto-wallets
[2] https://swgfl.org.uk/security/types-of-malware/

[Rikafip]

This is just ignorance compared web app like FTX to online wallet they work on different technology.

What matters is that behind both of are people and they can have malicious intent that might cause you lose your money and if we don't lack something in crypto, that's those kind of people.

Problem with a closed-source wallet is that no one outside of the company that made it can check the code, making sure that there are no hidden surprises waiting to be exploited unlike the open source one that are regularly checked by community.

[pooya87]

Keylogger work on a way that it sees what you typing.

If my trustwallwt pass  852852 and the i download conpronised virsus suddenly on their new update   it only see  what i type 852852
Not my seed.

If you already have a malware on your device that can record your passphrase, considering that we are talking about non-custodial wallets, it is trivial for it to also gain access to your storage disk and copy the wallet file and then use that passphrase to decrypt it to extract the seed phrase from that!