3 Cryptocurrency Wallets You Should NOT Use
People new to bitcoin or cryptocurrencies in general usually simply just open up Google PlayStore or the Apple AppStore and do a search for “bitcoin wallet” and choose probably the first app that comes out on the list. Unfortunately not every single one of the wallets with the most downloads are actually good. For your guidance, here are 3 bitcoin and cryptocurrency wallets you should NOT use.
Both available on Android and on iOS; looking at the screenshots of the app, Freewallet doesn’t actually doesn’t look bad, also knowing that their wallet actually supports more than a dozen coins and tokens. Unfortunately though, Freewallet doesn’t give you access to your wallet’s private key(s). Instead, they let their users use a username and password login instead. That alone should be a huge red flag, due to them having total control over your private key(s), and them being able to revoke access to their user’s funds if they wanted to.
Not to mention the dozen complaints about Freewallet on Reddit.
Alright. Exchanges aren’t wallets, true. But they do give you wallet addresses for multiple coins/tokens for you to deposit your funds. Unfortunately, some people actually use exchanges as their wallets due to the huge selection of coins/tokens.
Bitcoin and Cryptocurrency Exchanges should only be solely for exchange of coins/tokens to fiat and vice versa due to exchanges being a very hot target for hackers. Most exchanges like Binance are pretty secure, but take note that nothing is unhackable. Even the #1 bitcoin exchange of 2010 to 2014, MtGox, got hacked; losing approximately ₿850,000.
Shocker, ain’t it?
I definitely have nothing against Coinbase. Actually, huge props to them for creating one of the best(if not the best) platforms for buying and selling bitcoin, ethereum, and a few others. Yes, you can freely use Coinbase as a wallet; but Coinbase unfortunately still falls under the exchange category.
To put it simply, just like with any other exchange, Coinbase has your private key(s) and you don’t. Coinbase being a centralized entity, they could simply lock up your account if they want to, or if the government told them to; due to multiple possible reasons like you being accused of money laundering and other similar crimes.
After buying some bitcoin on Coinbase, simply move out your coins over to your own wallet immediately to prevent problems from happening.