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

[dlightag]

Bitcoin business environment is very wide and we keep learning everyday as technology is keep advising, Hence when it comes hardware wallet and software wallet, one carries device and the other one is online wallet as the case may be, all is determined by individual understanding and as of me, I prefer using software wallet, I mean online wallet, because is very easy for me for a transaction and always secure my phase code and private key safe. Than using external device to safe my Bitcoin and other alt-coins.

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[nimogsm]

Bitcoin business environment is very wide and we keep learning everyday as technology is keep advising, Hence when it comes hardware wallet and software wallet, one carries device and the other one is online wallet as the case may be, all is determined by individual understanding and as of me, I prefer using software wallet, I mean online wallet, because is very easy for me for a transaction and always secure my phase code and private key safe. Than using external device to safe my Bitcoin and other alt-coins.

That's right, each user uses applications or a hardware wallet at his own discretion. I agree with the thesis that for small amounts there is no point in buying any devices since this simply makes no sense and will not be profitable. For longer storage and large sums, a hardware wallet will be a good solution, since the risk of hacking will be minimal; only the probability of losing this wallet will be.

[Nrcewker]

Definitely, it’s always advised that if you have big investment in bitcoins and if you are planning to hold it for long terms, then it’s better to use hardware wallet or specifically Trezor wallet. But if you have small amount to hold,then trezor can be expensive to own. In this case software wallet or electrum is sufficient. Depending on the amount you holding, you should adjust the security accordingly.

[icalical]

Calling Freewallet a software wallet, and then generalizing that all software wallet is not safe is definitely misleading. Instead of software wallet Freewallet is more of a web-wallet. Or I think the best way to call it is a custodial wallet. Why does this matter? because not all software is custodial wallet, there are many non-custodial software wallet and those non-custodial software wallet give you complete control of your fund and private key. Thus the misfortune experience that  happened to OP where he can't access his fund will not be happening with a non-custodial software wallet. So generalizing all software wallet and think all of them is like Freewallet is not right.

Other than that, there has been a lot of complaint about Freewallet, in this forum and on the internet in general. And I wish OP learns his lesson a other people too.

[kryptqnick]

I think the problem in op's case is not that it was an online wallet but that it was a custodial wallet. Custodial wallets are riskier than non-custodial wallets because the company is the one that actually keeps the money. But I honestly don't see anything wrong with using a good non-custodial wallet like Electrum. It's convenient, it isn't linked to email, and it's fairly safe. I'm not saying that hardware wallets are bad, by no means. But there are decent digital versions as well, which can work just fine and be pretty safe to use.

[Pierre 2]

At this point, Bitcoin has many legal backing up right now and recognized as important asset (or currency). So I think one can feel lot safer than Bitcoiner that used software wallets in past. There are very useful and popular software wallets right now. Minor googling would come up with suggestions. I think I used electrum continuously for many years and I never regretted. I am using hardware wallet mainly right now yet electrum is nice alternative.

[Despairo]

At this point, Bitcoin has many legal backing up right now and recognized as important asset (or currency). So I think one can feel lot safer than Bitcoiner that used software wallets in past. There are very useful and popular software wallets right now. Minor googling would come up with suggestions. I think I used electrum continuously for many years and I never regretted. I am using hardware wallet mainly right now yet electrum is nice alternative.

Which country or laws backing up your coins when you lose it in your non custodial wallet? show it to me, I believe there's no any institutions is backing up your coins instead they will blame you for not leaving your coins in their local exchanges.

If you refer to Binance since they claimed to have SAFU, there's no guarantee they will refund back all of coins when something bad happen to their sites.

The old non custodial wallet and the current non custodial wallet have no difference, they're always safe.

[crwth]

It must be rough having to lose money because of the lack of knowledge and security on how you can protect your Bitcoin and just using online and hard to really justify to use that Free Wallet. Maybe it means that they have free access to your wallet 

Anyway, at least now you have understood why security is important and spending $40 - $150 on a hardware wallet is better than losing all of your money $2000.

Important lesson for everyone of us here.

[bolshojkush]

Definitely, it’s always advised that if you have big investment in bitcoins and if you are planning to hold it for long terms, then it’s better to use hardware wallet or specifically Trezor wallet. But if you have small amount to hold,then trezor can be expensive to own. In this case software wallet or electrum is sufficient. Depending on the amount you holding, you should adjust the security accordingly.

If there is a lot of money, then the option with two wallets is the most acceptable. Keep a large amount in a hardware wallet, and the money for current expenses in a software wallet.

[PrivacyG]

Free Wallet is very well known for freeing the Bitcoin out of your Wallet and in to theirs.

This is why you do research and never jump into a subject with zero knowledge as if you know where to start.  You probably do not.  Learn, accommodate yourself and then you will likely know where to start.  You are storing real value.  Why would you not care where the value is stored?  Because it is digital?  I would never trust an App on Play Store with my sensitive information either.  But what you did was as if you bought a random Wallet for your Fiat, put all the money you had in it and kept it in the back pocket of your pants.  And then be surprised if you realize your money and Wallet is gone.

Research!

[South Park]

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.

Sorry for your losses, but whether to use a hardware wallet or not depends on the user itself, if we are talking about a user that took their time to understand bitcoin, knows about the ideals behind it, and they are skilled enough to secure their devices properly, then I think using a software wallet to store their holdings is OK, however if the person is a complete newbie and they do not know how to protect themselves or their coins then a hardware wallet is a good option.

[Woodie]

I think it depends which how much you have and how frequently you will be transacting those coins!

And for a place like the BCT forum that preaches about "not your keys, not your coins" you will be surprised to know most users here do use software wallets mostly, including exchange wallets(technically a software wallet  ) for the purpose of saving/cutting down on transaction fees which tend to jump super high with the BRC20 tokens gaining some traction, the whole ordinals circus going on etc

Otherwise, for the purpose of being a hodler, it's advisable to store such coins on a cold wallet which you have full control of without having to worry that a third-party used these coins or lost them to a hack...unless you want ease of access and some high risk in sight then go for it with a software wallet..everything does have its own Pros and Cons.

[Ojima-ojo]

There is many factors that leads to Bitcoin user storing  their large funds on an online wallet, even though we know the risk that comes along with that decision since you can lose some or all funds at any point in time,


One of such reasons for storing such  huge amounts on online wallets is because of the ease of accessibility and funding to get such an offline cold wallet which makes it hard for any third party to gain access to the wallet like what always.

[Smartvirus]

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.

Oh no! You just might have done this to yourself mate, it’s not entirely about you not having to get yourself a hardware wallet or saving your coins on some cold storage but, having to choose custodian wallet as against non custodian just because, it doesn’t require an email to be synchronized with or for the fact that it requires of you to write down your seed phrase.
You ought to understand that what seems so easy to use could have security flaws as well.

Haven’t been here for sometime, it would have been a wise decision to have switched from using custodian wallet to a non custodian wallet. Perhaps you got more comfortable with the wallet you’ve built your Bitcoin journey about but, should you value your coin any more, your sense of security should have kicked in. Maybe it was your part to learn the hard way and sure you did learn.

[dothebeats]

I have a trezor that I use to store some bitcoins and also rely on software wallets (even mobile ones) to store a couple hundred to thousand $ worth of bitcoins and I haven't encountered anything wrong. Perhaps it's in the way you handle your security, as all of these wallets are prone to possible hacks. With what you stated, you only saved the logins of your account. Adding 2FA and always keeping track of your account activity is your best bet in securing such types of wallet. I'm using the same mobile wallet I used since 2015 and so far, I haven't encountered hacks or anything of that sort. Your security is only as good as how you keep it, so the problem may not be in the software or hardware but in the user all along.

[Z-tight]

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.

People lose their funds even if they store it in a hardware wallet, and that is because they have bad opsec or expose their seed phrase. Offline wallets like a hardware wallet or airgapped wallet is very safe, but the safety of your wallet also depends on you the user and how safe the environment you store your coin is.

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.

You can set up your Electrum software wallet in a completely airgapped device that would never be connected to the internet, this gives you as much safety as a hardware wallet, and some more experienced users prefer it to a hardware wallet because it is a DIY wallet and you don't have to deal with 'shady' hardware wallet manufacturers.

[LogitechMouse]

So, I can call myself stupid then? Oh, ok I'm stupid now that I'm keeping thousands of dollars of Bitcoin in a software wallet.
Who's else here is a stupid one like me? Storing Bitcoins in a software wallet called "Electrum"? We are all stupid, and I guess let's accept the reality. 

You used Freewallet when you're starting. A wallet that has a history of negative comments, and they also have a thread here with regards to users losing their money. No big deal about that. What I don't like is that you're saying that "If you put your thousands of Bitcoins in a software wallet, you're stupid." Well, I like the last part of what you said though that we should consider having a hardware wallet but putting it on a software wallet like Electrum is almost the same.

At the end of the day, it will come back to how secure the Bitcoin holder is with their Bitcoin. I can have a hardware wallet, but I have no idea with phishing attacks, and how scammers are scamming people. On the other hand, I can have a software wallet like Electrum, and still prevent myself from getting hacked or scammed. This is where you can apply the quote "Knowledge is power."

Anyway, good advice for OP still. If you're comfortable when you're using hardware wallet then there's no problem. Same goes with software wallets.

[rodskee]

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.

actually don't call them stupid when you are only talking about HOLDING , there are other users
who store there coins inside their wallets because they need to use it from time to time, and what are those times?
it is in their business who transacting many times each day.

But if this is about HODL then year we must not leave our 4 digits into software .

[yhiaali3]

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.

Yes, that's right. I learned this from a bad experience I recently had, where my Electreum wallet was hacked and $750 was stolen after my computer was infected with a virus. If I had spent some of this money on buying a hardware wallet, I might have been safe now.

Therefore, for a person who is thinking about Bitcoin DCA in the long term, he should not be lazy to take security measures with great care, whether spending some money to buy a hardware wallet or securing his wallet with all the necessary protections, otherwise he will regret it later.

[Casdinyard]

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.

I don't take it as "stupidity" to look for the most urgent and accessible way to get your cryptocurrencies in check. I believe that myself included, we have a lot of people in this forum and beyond who's all for accessibility and software wallets could just do that for you. Trezor wallets and those keychain wallets as I call them are better alternatives sure, but for folks who deals with a measly couple hundred bucks every week or so, do you really have to spend $300 to $500 bucks for a more secure wallet service that you couldn't even connect to the internet?

Plus for me, you got yourself in that situation and I think it's a little unfair that you're blaming software wallets for your misfortune lol. You literally got yourself locked out by forgetting your seed phrase when most of these hot wallets would literally remind you 3 whole times to jot it down or have a way of storing them safely because they will not be responsible for retrieving your address should you forget about your money and you lock yourself out. It's a rookie mistake if I do say so myself and while I don't think you deserve to lose thousands of dollars for it, you definitely had it coming my friend.

Hot wallets are good no matter how you look at it. Just don't be belligerent with the way you use it and you should have a great time dealing and working with wallets like these.