It's stupidity to have thousands in Bitcoin using a software wallet

[Crypt0Gore]

If I can start my crypto journey from the scratch, all over again or I have all the money I had years ago I won't repeat same mistake, the first thing that I found very hard to strongly believe back then is...

Spending some money on Cold storage, a Trezor maybe, I use to underestimate this, even when I have heard it multiple times before, yet I choose the easy way out, without even the proper research.

If I choose to spend that money that was hard for me to spend on a hardware wallet then I would have safe myself from some losses.

It's easier to find the definition of Bitcoin online at the time but it's a bit complex to know out of the box that there is something called cold wallet or custodial wallet, it was confusing to me, so I just visit google for answer and yes Legder and Trezor are always the first, instead I went on google play store for bitcoin wallet, I mean, why spend dollars on a hardware wallet when a software wallet can do the same?

This was how I found FreeWallet, I use this to store some Bitcoin, it was easier for me because it required only email login and password, I stumbled on some that ask me to write down recovery seed but it was stressful for me, stupid me, since Free wallet sync with my email I thought that's all that matters and I lost it all, can't log into my account anymore, as if Freewallet swapped my password and log in info.

Things are different now, in fact way better, still if you are new and you want to DCA into Bitcoin, kindly consider getting a Trezor wallet at least, don't keep Bitcoin worth $2000, $10,000 on a software wallet, even if its a open source software wallet I believe this amount is too much for a software wallet, having this much means you can afford a hardware wallet.

[Mia Chloe]

It's not stupidity now let me tell you why.
A lot of Bitcoin users have over $10,000 worth of Bitcoin on their online wallets and not a cold wallet now this is because people like this are business persons who transact constantly with Bitcoin and putting it on a hardware wallet will make it more difficult for them to make quick transactions.

The cautions that come with using an online open source wallet like Electrum is mainly to keep your keys and seeds safe. The only problem is that when your keys are online they are more easily compromised than when they are stored offline. One has to even be careful when storing keys offline as theft and burglary can also compromise them.

Majority of people that use cold wallets for Their Bitcoins actually do it for their hodlings since they don't have to visit it frequently.

[bitmover]

If I choose to spend that money that was hard for me to spend on a hardware wallet then I would have safe myself from some losses.

It's easier to find the definition of Bitcoin online at the time but it's a bit complex to know out of the box that there is something called cold wallet or custodial wallet, it was confusing to me, so I just visit google for answer and yes Legder and Trezor are always the first, instead I went on google play store for bitcoin wallet, I mean, why spend dollars on a hardware wallet when a software wallet can do the same?

This was how I found FreeWallet, I use this to store some Bitcoin, it was easier for me because it required only email login and password, I stumbled on some that ask me to write down recovery seed but it was stressful for me, stupid me, since Free wallet sync with my email I thought that's all that matters and I lost it all, can't log into my account anymore, as if Freewallet swapped my password and log in info.

You are talking non sense.

Unless you are very experienced in cyber security,  there is no way you could have the same level of security using a software wallet and a hardware wallet.

A hardware wallet gemerates your seed in an airgapped environment , 99.9999% secure. You can even plug your device in an infect computer and your coins will be safe. Unless if you do some mistake like phising etc...

[BABY SHOES]

It's your own fault for using Freewallet which we know is a shady wallet, in fact I've seen several cases where they can't be accessed anymore.
I think if you only rely on email and password then this is almost the same as a third party then it could be that the freewallet stole your coins.

Actually it doesn't matter if you use a software wallet as long as you can secure the seed phrase and the computer is protected from viruses, I think there are still many people who store large amounts of coins in software wallets for their daily transactions.

I have a hardware wallet to store long-term coins, but for frequent transactions I find it easier with software wallets because it's faster there.

[Upgrade00]

Spending some money on Cold storage, a Trezor maybe, I use to underestimate this, even when I have heard it multiple times before, yet I choose the easy way out, without even the proper research.

If you use a hardware wallet without proper research you are still at security risk, more than someone who uses a software wallet and applies full security precautions.

instead I went on google play store for bitcoin wallet,

Even if you're using a software wallet on an airgapped device or as a hot wallet, do not get it from play store. Always use the official website and verify the signature before downloading.

Things are different now, in fact way better, still if you are new and you want to DCA into Bitcoin, kindly consider getting a Trezor wallet at least, don't keep Bitcoin worth $2000, $10,000 on a software wallet, even if its a open source software wallet I believe this amount is too much for a software wallet, having this much means you can afford a hardware wallet.

I'll recommend an open source software wallet over a closed source hardware wallet.l

[Zaguru12]

Things are different now, in fact way better, still if you are new and you want to DCA into Bitcoin, kindly consider getting a Trezor wallet at least, don't keep Bitcoin worth $2000, $10,000 on a software wallet, even if its a open source software wallet I believe this amount is too much for a software wallet, having this much means you can afford a hardware wallet.

I think almost all of use actually made one or two mistake when starting this exciting journey some base on our gullibility and some on greediness.

Now as to the choice of wallet, there is no better way choice in terms of security other than a cold storage just like you have written but Hardware Just like you have pointed out isn’t the best because you can use a software wallet better than an hardware wallet and that is by airgapping it. Even this hardwares also causes problems sometimes like company change of policy but with an airgapped device you set it up and if done properly is more secure than even an hardware. But the reason why most people advise newbies for hardware is because most of them will mess up the process of setting up an airgapped device with a software wallet.

Another thing we down play a lot is sometimes after the choice of a wallet is made the problem lies on how we actually safe our seed phrase. Some wallets get compromised not through phishing but through physical access to the wallet key or seed phrase

[Cookdata]

This was how I found FreeWallet, I use this to store some Bitcoin, it was easier for me because it required only email login and password, I stumbled on some that ask me to write down recovery seed but it was stressful for me, stupid me, since Free wallet sync with my email I thought that's all that matters and I lost it all, can't log into my account anymore, as if Freewallet swapped my password and log in info.

Things are different now, in fact way better, still if you are new and you want to DCA into Bitcoin, kindly consider getting a Trezor wallet at least, don't keep Bitcoin worth $2000, $10,000 on a software wallet, even if its a open source software wallet I believe this amount is too much for a software wallet, having this much means you can afford a hardware wallet.

Software wallet might not be perfect but over the years since I have been into crypto, I have not heard reported cases of Electrum wallet of been compromised, not because it cants but using some safety measures will protect you from losing your coins. I used a software wallets and it doesn't make me stupid because the bitcoin on the wallet is small, not large and the wallet is open source which means it's likely to have zero backdoor where shady things can happen but you downloaded a crapy software wallet and making it seems all software wallet are garbage, yours even included email and password, in 2024, that's pure scam.

Nothing is different that has never been discuss since bitcoin has ever existed or not discuss before, we just don't pay attention until we bight ourselves on the fingers and they cry victim. Not your keys, not your coins. Use a open source hardware wallet to manage your bitcoin and private keys and if you must use a software wallet for Bitcoin, use reputable ones that are open source like Bitcoin core and electrum.

[Hatchy]

It's easier to find the definition of Bitcoin online at the time but it's a bit complex to know out of the box that there is something called cold wallet or custodial wallet, it was confusing to me, so I just visit google for answer and yes Legder and Trezor are always the first, instead I went on google play store for bitcoin wallet, I mean, why spend dollars on a hardware wallet when a software wallet can do the same?

I don't recommend ledger for hardware storage as they are unsafe. And with recent news of them using cloud to backup users data, it shows how untrustworthy ledger is. So just as @ Upgrade00 had said, if you don't do proper research you may end up using a hardware wallets that will get your funds compromised.

This was how I found FreeWallet, I use this to store some Bitcoin, it was easier for me because it required only email login and password, I stumbled on some that ask me to write down recovery seed but it was stressful for me, stupid me, since Free wallet sync with my email I thought that's all that matters and I lost it all, can't log into my account anymore, as if Freewallet swapped my password and log in info.

You made a mistake by using wallets that are controlled by third parties and centralized. Any wallet that stores your keys for you is considered unsafe and not trustworthy. Remember, if you don't control the keys, you don't control the coins. This should be a lesson for you.

I don't see how difficult it is to write down your seed phrase and keep it in a secure place. If you think software wallets are unsafe, you should reconsider. There are good wallets like Electrum and Blue Wallet. As long as you can keep your seed phrase offline, your funds will be safe.

[Churchillvv]

As they say there is no 100% safe wallet based on some biased points but there are wallets that are more secured than others.

At your level I don't think you should be making this kind of mistake because even from the first week I got here (when I started participating in discussions) I noticed that almost everyone suggest electrum as a good wallet when ever it required wallet issues and with the time you have spent here you most have heard of such too, so I'm not expect a person of your rank to make such silly mistake. Even with a little amount like $500 we are always advised as newbies to start considered better wallets like Electrum, Sparrow, hardware and cold store wallets and from such you should have moved yours to this preferable wallets that you can be confident woth your stash.

Online wallets can still holds so big amount of Bitcoin but it's will more safer if one acquires a hardware wallet or a cold storage wallet but this two wallets are mostly used long term purposes. If you need to make a day to day transaction then you should have considered better wallets.

At the end I'm really really disappointed to see a senior colleague make such mistake. A 10k is an insane amount that you could toy with, if such mistake was made by a newbie it should be understandable because he/she lacks better wallet know at that point but for someone of such position is very disappointing. To think that you did even write than your recovery seed phrase, so sorry to day is that not insane?.

Well everyone has lessons to learn and I suppose this is yours.
 

[dunfida]

Things are different now, in fact way better, still if you are new and you want to DCA into Bitcoin, kindly consider getting a Trezor wallet at least, don't keep Bitcoin worth $2000, $10,000 on a software wallet, even if its a open source software wallet I believe this amount is too much for a software wallet, having this much means you can afford a hardware wallet.

Honestly, it is really just that the same, it is really just that there are people who cant really be able to handle themselves when it comes to those things specially if its related to security.
Im telling you that i have been that failing on purchasing some hardware wallet even if its just that cheap. Why? because im not really that holding a substantial amount of Bitcoin
and this is why buying one wont really be that relevant. Well, i do have some few though and some altcoins but i can say that there are wallet which are open source.
Yes, its software but as long you do possess its keys then you could actually be able to access that wallet compared into those custodial ones which does require
those email log in or whatsoever. It is really just that sometimes you would really be needing to make use of your common sense for you to be able to differentiate on which one is better and
which one is really that risky.

[lombok]

You have valuable experience, which can bring profound changes to storing your Bitcoin assets properly.

In the past, I also preferred wallet software or even storing Bitcoin in an exchange wallet, but I often read on this forum in particular and in several articles that exchange wallets and software are still not safe for us to store Bitcoin assets for a long or certain period of time because they still have the potential to be hacked. .

There are several suggestions that hardware wallets, multisignature wallets and electrum are good wallets for long-term investment purposes as a storage place for Bitcoin assets. Since then I prefer to buy a Trezor wallet.

[Crypto Library]

It is true that hardware wallet is best for fund holding of large amount of bitcoin. It protects from being an easy target of phishing attacks. Even then, hardware wallets do not guarantee 100% that your funds are completely safe from hacking. The security of your fund depends a lot on you. If you are holding bitcoins on your device and not browsing safely, then no one can save you from being hacked. In case of a hardware wallet, you must be careful when connecting the hardware wallet to any device. That device should be safe. However, the latest layer to provide the best security for holding funds is to use hardware wallets, but those who maintain security and use hot wallets for holding, I will not call it stupidity. Because many people have problems importing hardware wallets, like mine, cryptocurrency is illegal in my country and for this reason I cannot buy any hardware wallets from anywhere.

[electronicash]

if you plan to hold the coins for a long time, it will be worth storing them in cold storage. its been the suggestion since time.

but the adoption of BTC makes people just use the wallets they download from google play already. it's enough as long as they can import their wallets elsewhere if needed. every day we send transactions all the time, i guess you will just be spending fees if you use the cold wallets. right now, some of my coins are stored in the app.  i can transfer BTC faster to my local currency wallet this way.

[The Sceptical Chymist]

I think almost all of use actually made one or two mistake when starting this exciting journey some base on our gullibility and some on greediness.

Maybe.  I know I fooled around with very un-secure things like web wallets when I was first learning the ropes, but then there are people like the Winklevoss twins who did their due diligence around security issues before making their first bitcoin purchase.

Whatever the argument is here, OP looks like he's shilling and not sparking up a real conversation.  If I were him I'd lock the thread ASAP.

[sokani]

This is not true. The fact that you got scammed by freewallet doesn't make all software wallets bad. Free wallet is not a good wallet, it has many scam accusations and you can see that from the negative trust feedback left on the profile by forum members. Hardware are the safest no doubt about that but you can still use open source software wallets like Electrum on an airgapped device and stack as much Bitcoin as you can.

[decodx]

OP, your story actually shows that having the right knowledge is key to protecting your assets. You didn't lose your bitcoins because you chose one type of wallet over another, but rather due to your own lack of knowledge and laziness.  I'm not saying FreeWallet was a wise decision, but consider instead using a hardware wallet. However, even with a hardware wallet, you could still lose your holdings if you don't make a proper backup and write down your seed words as recommended.

My point is that wallet selection matters, but researching options and following protocol to secure funds matters more.  Lots of folks learn this the hard way unfortunately and  don't beat yourself up too much.  Now you know better for next time.

[The Cryptovator]

Those who are very serious about securing their funds must use a hardware wallet. At the beginning, crypto users don't have the proper knowledge and experience about wallets; hence, they start using a web wallet. It is very risky to store your funds in a custodial wallet. A non-custodial software wallet isn't very bad if you know how to use it properly. But a hardware wallet is always preferable. To secure both wallets, you must secure your wallet seed phrase. Spending a small amount on a hardware wallet would save you funds.

[Potato Chips]

Tbf, you can setup a software wallet in an airgapped environment for hardened security e.g. electrum

But you can't do it with a custodial wallet like Freewallet. I honestly think there should be a more fitted term for wallets like freewallet considering how they work so much like exchanges when it comes to the storing bit-- it's fully custodial, has account login system of email and password, has their own kyc/aml policies which btw has been known to be scummy, look at all these scam accusations lol, see: Freewallet.org SCAM accusations - a compilation

[Hamza2424]

Hmm, First of all, said to hear that you were using the software wallet = hot wallet and a type of wallet that was not open source and decentralized as well on the same time you were quite satisfied with the synchronization of the wallet with Email, you really under-estimated the security. Anyway, it was the past now you are an experienced man from your this topic maybe someone can take the good piece of advise to save himself.

Note: Most of the centralized exchanges introduced their Web-3 so-called decentralized wallets I'm not fo now questioning their reliability but still these wallets are synchronized with your exchange accounts so make sure not to hold major amounts in those wallets. At the same time most of the Hot wallets these days are suggesting users who create new accounts to save/store their seed phrases in google drive as cloud backup. I will strongly recommend ignoring cloud backup because its way more dangerous.

[OGsmall]

If I can start my crypto journey from the scratch, all over again or I have all the money I had years ago I won't repeat same mistake, the first thing that I found very hard to strongly believe back then is...

Spending some money on Cold storage, a Trezor maybe, I use to underestimate this, even when I have heard it multiple times before, yet I choose the easy way out, without even the proper research.

If I choose to spend that money that was hard for me to spend on a hardware wallet then I would have safe myself from some losses.

It's easier to find the definition of Bitcoin online at the time but it's a bit complex to know out of the box that there is something called cold wallet or custodial wallet, it was confusing to me, so I just visit google for answer and yes Legder and Trezor are always the first, instead I went on google play store for bitcoin wallet, I mean, why spend dollars on a hardware wallet when a software wallet can do the same?

This was how I found FreeWallet, I use this to store some Bitcoin, it was easier for me because it required only email login and password, I stumbled on some that ask me to write down recovery seed but it was stressful for me, stupid me, since Free wallet sync with my email I thought that's all that matters and I lost it all, can't log into my account anymore, as if Freewallet swapped my password and log in info.

Things are different now, in fact way better, still if you are new and you want to DCA into Bitcoin, kindly consider getting a Trezor wallet at least, don't keep Bitcoin worth $2000, $10,000 on a software wallet, even if its a open source software wallet I believe this amount is too much for a software wallet, having this much means you can afford a hardware wallet.

OP generously I think this should have through you some sermons never to put full confidence in some impostor software wallet.

A friend of mine was as unreasonable as this to want to some  cheap or software wallet and store up some of his Bitcoin there just as you did
All the time higher members on the forum always do said chose your wallet carefully it is the most important of all
I think we just have to take matters like this more defensible