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

[SeriouslyGiveaway]

I believe that many newbies easily make this mistake when first storing their Bitcoin or Altcoins. Usually, they will store it right on the exchange because it is convenient, secondly they will choose hot wallets like Metamask or Trust wallet. Hot wallets are not bad if you really separate the storage wallet and the transaction wallet on defi applications, otherwise you can lose money at any time with just an insecure connection. To access a cold wallet is actually a bit complicated and a bit expensive for newbies. To be honest, the cost is not too expensive compared to the amount of money they invest, but the initial barrier to access it is the way to set them up and often they get confused at this initial stage. I was like that before, I found it quite cumbersome and sometimes I couldn't find the Altcoin I wanted to store on the Ledger wallet (maybe it's not supported yet, or the token is ERC-20 but not displayed on Ledger Live).
After 3 cycles, with the strong development of hardware wallet services, we have had more many choices for hardware wallets besides Ledger and Trezor like Key Stone. Currently, I still use both Hot wallets and cold wallets, hot wallets should be divided into 2 types: 1 type only for storage and 1 type specialized for Defi.

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[Natalim]

Use an open-source wallet like Electrum if you are actively making a trade.
Use a hardware wallet if your purpose is storing long-term.

We choose what type of wallet depends on our needs, that is the thing we are supposed to do. Because if we just think about security, both are still prone to hacking but this can be avoided if we know how to securely keep our passwords. In fact, many holders are using Electrum wallet and they have no complaints of getting hacked. This means that it depends on the person and how cautious we are when visiting sites and opening links.

[AHOYBRAUSE]

I wouldn't know why it's stupid.
Before I used hardware wallets, I had for example in 2020 or something, or maybe 2021, some btc worth at least 50k and I stored it in my electrum wallet. Still using electrum by the way.
I never had any issues or security concerns since I know I downloaded the right wallet, had my keys/seed stored save and even if somebody would steal my device he would never guess my password or anything.

Well, call me stupid but I have always been happy with my storage.

[Z390]

Ok, I read a comment claiming that people use software wallet for easy and faster transaction, I will like to ask which hardware wallet isn't this easy to use? Because my hardware wallet only takes me six second to scan a qrcode instead of copying and pasting the address and sent it right away, it's as easier as when using a software wallet too, stop the cap.
It's really not stupid to hold heavy Bitcoin in a software wallet if you know what you are doing, it's just that you don't want to use such wallet to play around, now that brc20 is here, there are many fake of these project in crypto space now.

Now some bitcoin software wallet are now accepting brc20 tokens, if you like claiming every shit online you can get your wallet compromised, the security of your bitcoin wallet is in your hands, but bitcoin wallets, are safer than multi wallets for altcoins.

Just get the right wallets, and keep your recovery seed safe, and private.

[marlo1001]

Im using ownr for small hot holdings and ledger for the rest. That give more more peace in mind about my currency

[Bitco55]

The convenience that comes with using software storage methods cannot be compared to that of using hardware. Hardware is usually used by people who want to hold Bitcoin for a long time and it also has its own risk, although not as much as software.

So, it's not stupidity to store on software. Imagine telling a BTC trader to use hardware to store his Bitcoin. In as much, I do understand what you're trying to say and it's knowledge, but mind you everyone has personal reasons and influence, so not everyone would buy the idea. Don't get me wrong hardware's are great, but more convenient when one decides to start holding instead of trading.

[Ale88]

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.

The human brain works in very interesting ways because oftentimes we refuse to realize the type of mistakes we are making with the hope to save a few dollars. And I do that mistake as well, but luckily not with cryptos. I understand that it could be annoying spending $70-100 for a hardware wallet but even if you own just $500 of cryptos than it's totally worth it, don't be cheap about security, it would be like buying a Ferrari while trying to save money on the tires...

[Claymore2]

Your experience holds immense value and could truly transform how we safeguard our Bitcoin holdings. Like many, I used to trust wallet software or exchange wallets. But diving into forums and articles opened my eyes to the risks—they're just not secure enough for the long haul. Instead, recommendations pointed towards hardware wallets, multisignature setups, and Electrum for safer, long-term investments. That's why I've made the switch to a Trezor wallet—it just feels like the right move.But anyway.....

[Learn Bitcoin]

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 may already know now that Freewallet is a complete scammer! There are hundreds of scam accusations against this wallet service provider. I have never seen a wallet ask for KYC information but this fuckers does. Even if you had your seed phrases, I don't think you would have been able to get your money back. I never used their service and I don't know how their service works. All I know about them is, they are just a bunch of scammers!

I do not have thousands of Bitcoin but I have some Bitcoin. However I am afraid that I am unable to buy a hardware wallet due to some limitations. Bitcoin is not allowed here and no companies ship hardware wallets to my country. I wish, I could have buy one.

[Kakmakr]

I think a hardware wallet are a multi purpose item, because you can use it regularly and you can also store coins on there for longer periods.

I just find that the firmware upgrades on some hardware wallets are over complicated and might be a daunting task for less technical people.  

Just imagine your granny of 87, having to upgrade the firmware on her Ledger Nano wallet?

[kotajikikox]

The convenience that comes with using software storage methods cannot be compared to that of using hardware. Hardware is usually used by people who want to hold Bitcoin for a long time and it also has its own risk, although not as much as software.

well most of us have hardware for safe keeping as we believe in long term than just to use in daily basis so we need to have time for waiting.

So, it's not stupidity to store on software. Imagine telling a BTC trader to use hardware to store his Bitcoin. In as much, I do understand what you're trying to say and it's knowledge, but mind you everyone has personal reasons and influence, so not everyone would buy the idea. Don't get me wrong hardware's are great, but more convenient when one decides to start holding instead of trading.

Maybe there are case to case basis because when you are in trading there is no way that you need to use Hardware wallets because you need to take them in and out to be used.

[angrybirdy]

I wouldn't know why it's stupid.
Before I used hardware wallets, I had for example in 2020 or something, or maybe 2021, some btc worth at least 50k and I stored it in my electrum wallet. Still using electrum by the way.
I never had any issues or security concerns since I know I downloaded the right wallet, had my keys/seed stored save and even if somebody would steal my device he would never guess my password or anything.

Well, call me stupid but I have always been happy with my storage.

Same here, since I started here with crypto investment, I've been using software wallets because hardware wallets are quite expensive, so far I haven't encountered any issues, we just need to choose a legit and safe software wallet especially since there are so many scammers around, inside or outside the internet. It's not stupid to use a software wallet, and I don't see anything stupid about using it, unless you use a not reliable and not trusted wallet or you don't research what is safe to use.

[Troytech]

Mate you can't think everyone usage of bitcoin are thesame I know friends that make transactions in bitcoin daily and hence they have to keep their funds in software wallet, you can't expect them to be moving bitcoin every time they want to run a transactions, so it's not stupidity, it's actually taking advantage to reduce the fees you would spend moving your asset All the time from cold wallet to soft wallet. But for holders its not cool to keep your asset in soft wallet for security reasons.

Use an open-source wallet like Electrum if you are actively making a trade.
Use a hardware wallet if your purpose is storing long-term.

We choose what type of wallet depends on our needs, that is the thing we are supposed to do. Because if we just think about security, both are still prone to hacking but this can be avoided if we know how to securely keep our passwords. In fact, many holders are using Electrum wallet and they have no complaints of getting hacked. This means that it depends on the person and how cautious we are when visiting sites and opening links.

I totally agree with you we chose wallet based on usage, someone who trades often would prefer a wallet like electrum while a holder would think of buying a hardware wallet, but what matters most is our security measures and precautions, anyone can get scammed irrespective of the wallet he uses what matters is how security conscious you are.

[vapourminer]

[...] since I started here with crypto investment, I've been using software wallets because hardware wallets are quite expensive, so far I haven't encountered any issues, we just need to choose a legit and safe software wallet especially since there are so many scammers around, inside or outside the internet. It's not stupid to use a software wallet, and I don't see anything stupid about using it, unless you use a not reliable and not trusted wallet or you don't research what is safe to use.

you may choose a legit software wallet and use it correctly. but if the underlying machine is compromised (OS/malware etc) your software wallet is pretty much toast.

a hardware wallet can run on a compromised computer safely.. thats one of their main selling points.

so best practice is generally the main stash should be cold storage (airgapped etc) or hardware wallet and only keep your spending money that youre ok with losing for software wallet

[Inwestour]

I wouldn't know why it's stupid.
Before I used hardware wallets, I had for example in 2020 or something, or maybe 2021, some btc worth at least 50k and I stored it in my electrum wallet. Still using electrum by the way.
I never had any issues or security concerns since I know I downloaded the right wallet, had my keys/seed stored save and even if somebody would steal my device he would never guess my password or anything.

Well, call me stupid but I have always been happy with my storage.

This is not the safest way to store bitcoins, it’s good that you are lucky, apparently, besides everything else, you are also a careful user who does not download any dubious programs to your computer.

You also know that there are cases on the forum when users downloaded programs with viruses and scammers gained access to their accounts on the forum, took or tried to take out a loan, and also lost all their funds from Electrum.

There was also a case when all the bitcoins that the project sent for a campaign on the forum were stolen from one bounty manager, so cases of theft of bitcoins from Electrum are not uncommon, so although this is a good wallet and I also use it, but I wouldn't store any large amounts there.

[virasog]

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.

When you store your bitcoins and crypto in a wallet that you need to access via login and password, then it means that you store your coins on the centralized location and you do not have access to the private key or seed phrases. This is the most wrong way of storing the coins. If you do not have the hardware wallet, you should store your crypto in software wallet where you have access to private keys. If that centralized location refuses to withdraw your money or the site shutdown, you will lose your coins.

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.

Also a cold stage can also serve the same purpose. For example, you can make a cold storage device (that has no access to the Internet) and save your coins on that device. This provides the same level of security as the hardware wallet. However, it is best that you save your coins in the hardware wallet.

[Dailyscript]

I wouldn't know why it's stupid.
Before I used hardware wallets, I had for example in 2020 or something, or maybe 2021, some btc worth at least 50k and I stored it in my electrum wallet. Still using electrum by the way.
I never had any issues or security concerns since I know I downloaded the right wallet, had my keys/seed stored save and even if somebody would steal my device he would never guess my password or anything.

Well, call me stupid but I have always been happy with my storage.

This is not the safest way to store bitcoins, it’s good that you are lucky, apparently, besides everything else, you are also a careful user who does not download any dubious programs to your computer.

You also know that there are cases on the forum when users downloaded programs with viruses and scammers gained access to their accounts on the forum, took or tried to take out a loan, and also lost all their funds from Electrum.

There was also a case when all the bitcoins that the project sent for a campaign on the forum were stolen from one bounty manager, so cases of theft of bitcoins from Electrum are not uncommon, so although this is a good wallet and I also use it, but I wouldn't store any large amounts there.

An event shouldn't happen twice before a person learns. Avoid downloading software that do not have license. Also make use of private wallets instead of wallets that are public in some kind of way. This is the best practice to store your bitcoin.

[Z-tight]

An event shouldn't happen twice before a person learns. Avoid downloading software that do not have license. Also make use of private wallets instead of wallets that are public in some kind of way. This is the best practice to store your bitcoin.

I am having a hard time understanding what your point is, what license are you talking about, you should rather say that people should download their wallets only from the original source. I also don't know what you mean by private and public wallets, the recommended wallet to use is one that is self custodial, open source and well reviewed, like Electrum and BlueWallet for BTC.

[serveria.com]

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...

Actually, software wallets can be quite safe and reliable. I'm not even talking about sterile, airgapped PCs without NICs but even a regular PC with a working NIC can offer decent security for your coins. You have to be very careful, that's right. But even a hardware wallet is not 100% safe. You can buy a fake hardware wallet with a backdoor, there were several data leaks from hardware wallet manufacturers etc.

[wallet4bitcoin]

It is pure stupidity except your net-worth is in millions and those thousands are what you spend or what is left off.

I have been in situations where my software wallet got compromised and I lost everything and I concluded that the idea of cold storage is the best. Imaging saving your life's earning in a software wallet and someone compromises it and then it gets you back to starting your life afresh, that is time wasted and could have been avoided by having just a software wallet