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

[Ever-young]

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.....

Do you no that the higher amount of security for a wallet is not highly base on the wallet you use but its base on you the user of the wallet how protective you are to the wallet, first you need a wallet which can give you phrase to the wallet (ownership access) then you need to protect that wallet with the maximum security making sure that the phrase is not exposed to outsiders who can steal your crypto.

Even with hardware wallet, if connected to a device which is infected the wallet can still be compromised without you noticing, unless for multi signature wallet which needs more than 1 device to be able to get a transaction through.

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[Ben Barubal]

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 agree with what you are saying, because as long as you are sure that the precautions you are taking when using software wallets are correct, that is fine. Because I know someone who has been here for several years in the crypto space, he is able to store a huge amount in a software wallet like Ethereum, and he is the only one who knows the seed phrase, even though his last wife does not know it.

As long as the electrum version is always updated, it will not be a problem. So, if you're careless, your wallet with funds can really be in trouble; it's that simple to understand.

[Mame89]

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.

Actually, the two types of wallets are good but depending on we choose depending on the comfort of our use. Because each type of wallet has advantages and disadvantages, so be sure to choose the right Bitcoin wallet for your needs. In essence, software wallet and hardware wallet if we are not smart in maintaining data correctly will also risk that we will lose the assets we have, because the security of Bitcoin assets is basically in us in maintenance correctly and correctly.

Storing bitcoin safely and effectively will greatly protect the assets that you have both on hardware and software wallets. Make sure you choose the right wallet and safe. Then you also have to save a private key and not eliminate it.

[KiaKia]

If anyone is comfortable storing hundreds of thousands worth of Bitcoin in a software wallet like Electrum then it's their problem, I can't ever imagine having this much money on such app wallet, I won't be able to sleep at night.

Some people have stored hundreds of Bitcoin in a crypto mobile wallet for years and nothing bad happened to their assets but that doesn't mean yours will be safe, I get what this OP is saying, it's just some precaution advice.

Electrum wallet is not a airgapped BTC wallet, running it on your smartphones means it's always online, every time, and I have read so many times why this is not a good idea, I mean offline wallet are supposed to be the best.

[NotATether]

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?

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...

OP is talking in the past tense so of course they believe that hardware wallets are more secure than software wallets now

Anyway, sorry for your loss OP, but this is how you learn. Never ever store your bitcoins on a custodial platform. Custodial = does not give you a seed phrase.

It is just not worth it, I mean there are so many people lined up who are waiting to steal your money, that you can't get back since it is decentralized.

[Yatsan]

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?

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...

OP is talking in the past tense so of course they believe that hardware wallets are more secure than software wallets now

Anyway, sorry for your loss OP, but this is how you learn. Never ever store your bitcoins on a custodial platform. Custodial = does not give you a seed phrase.

It is just not worth it, I mean there are so many people lined up who are waiting to steal your money, that you can't get back since it is decentralized.

I quite don't get the idea of OP using past tense words in his sentence being related to his point of view that hardware wallets are more secured. My analogy with this is , online platforms are convenient to access and same thing goes with hackers. Everything in online especially wallets or accounts are prone to be hacked, if bad people will be given a chance. Including devices as threat, malwares and phising sites are troubles you wouldn't wish to encounter. What's best is to maximize the security of wallets as much as possible. At least hardware wallets will be only prone of owner's negligence which could be easy to change for the better. If you value the amount then there's no need to save a few amount; better to save what you are storing. The more you want to save a few money, the more you are exposing yourself with loss, as evident with mentioned instances.

[DeathAngel]

It’s 2024 & after so many very public exchange failures, collapses & hacks, people are still trusting centralised third parties with their stash. Some people are just unwilling or unable to educate themselves on the tech skills required to self custody. It isn’t that hard & it’s so much better than relying on an exchange or software wallet. Please buy a hardware wallet.

[moneystery]

everyone has a reason to store their bitcoins in a software or hardware wallet. but for people who store thousands of dollars worth of bitcoins in software wallets, that's not stupid either, as long as they have knowledge about the security of the devices they use. for example, if they use a device such as linux or mac that is only used for transactions, it might be very safe for them to use in the long term.

so it depends on how knowledgeable a person is about the security of bitcoin wallets, not on the type of bitcoin wallet they use.

[Antotena]

everyone has a reason to store their bitcoins in a software or hardware wallet. but for people who store thousands of dollars worth of bitcoins in software wallets, that's not stupid either, as long as they have knowledge about the security of the devices they use. for example, if they use a device such as linux or mac that is only used for transactions, it might be very safe for them to use in the long term.

so it depends on how knowledgeable a person is about the security of bitcoin wallets, not on the type of bitcoin wallet they use.

It's not about been stupid or knowing the security of wallet in details. It's risky to keep thousands worths of Bitcoin in a wallet because you can be a key target even when you are extra careful. Software wallets either on phone or pc is always vulnerable and dangerous because you use it for internet daily and anything connect to the internet is hackable, you can download a malware that will run a bug that will drain your wallet with just a single click without realizing it.

However, hardware wallet is not connected to the internet and with that, your private keys and seed phrase don't get to the internet, you are absolutely safe using it but you have to make sure that it's well protected and safeguard from people close to you else people can easily get access to your wallet.

[coolcoinz]

If anyone is comfortable storing hundreds of thousands worth of Bitcoin in a software wallet like Electrum then it's their problem, I can't ever imagine having this much money on such app wallet, I won't be able to sleep at night.

I've been doing it for years, almost 10 by now - mostly using a software wallet. First Core, then Electrum. I also have a hardware wallet but I don't keep all of my bitcoin there. Don't worry, I sleep like a baby.
I have a few wallets including a mobile Blue Wallet on my phone and never had a single satoshi stolen from me.

I feel like some of you are panicking. Software wallets are as safe as the computer they're on. If many people can access your device, you use a public network like the ones in libraries, dorms and similar places, you're putting the wallet at risk. In OP's case the problem wasn't lack of a hardware wallet but the fact that he used a scam online wallet. Online wallets are very risky and I've never used these to store money.