Be careful of mobile wallets that holds private keys

[Zed0X]

"Not your keys, not your funds", that is usually the advise given to many newbies storing their assets on exchanges. Apparently, there are some mobile wallet providers that controls the private keys like Word blocked because repetitive posts. Using such wallet is just as bad as storing on exchanges because they can also hold your funds whenever they desire and there's nothing you can do but to comply with whatever requirements they need. Your assets may still be released but imagine the inconvenience and the lost opportunities.

it is still 100% better to use wallets where you control the private key.


I've posted a similar topic in another forum

[ZionRTZ]

You cannot really call it your wallet if someone else is in control of your funds. I don't really understand why would anyone use such when there are so many free mobile and web wallets out there that are good and allow you to keep your private keys.

[Prime]

Even if we control the private keys, make sure that we choose trusted wallets. Never choose a wallet with a bad reputation.

[MrSpasybo]

I still remember the hack of EtherDelta, an exchange requesting private key to support the transaction. Private key is ours and we don't need to give it to anyone else, especially on vulnerable mobile devices when accessing public wifi automatically. Keep private key in the safest place, because that is the key to our property.

[Dprincebh]

Handling your private key by yourself gives you a full confidence and control over you asset. Once your private key is not with you, you are at a 50% risk of losing your funds, because once that wallet crash that's all you asset is gone

[crypto101]

"Not your keys, not your funds", that is usually the advise given to many newbies storing their assets on exchanges. Apparently, there are some mobile wallet providers that controls the private keys like Word blocked because repetitive posts. Using such wallet is just as bad as storing on exchanges because they can also hold your funds whenever they desire and there's nothing you can do but to comply with whatever requirements they need. Your assets may still be released but imagine the inconvenience and the lost opportunities.

it is still 100% better to use wallets where you control the private key.


I've posted a similar topic in another forum

thanks for sharing like this information bro, very important to us

[Leebecks]

Thank you for the information, it's helpful atleast Now I will know and where to operate a wallet.

[jeffbitcoin2018]

Why we shoukd be careful with that wallet app have holding our private key?? Why?? What will happend if?? Sorry for saying because im just corius for this holding private key..

[PurpleImp]

Why we shoukd be careful with that wallet app have holding our private key?? Why?? What will happend if?? Sorry for saying because im just corius for this holding private key..

Honestly it is as simple as a key that opens your wallet. If you dont have your key then you cant open your wallet. If someone else has your key then they can open your wallet. If you dont own the privatekey then you dont actually own whats in the wallet. Thats why i never use online wallets and urge you not to either.

[Zed0X]

Thank you for the information, it's helpful atleast Now I will know and where to operate a wallet.

Just imagine yourself giving a key to your room, where you store your valuable stuffs like cash, computers, etc., to someone else or a stranger. Can you imagine how dangerous that is? That is similar to wallets and exchanges having control of your private keys.

[Keenly]

Thank you for the information, it's helpful atleast Now I will know and where to operate a wallet.

Just imagine yourself giving a key to your room, where you store your valuable stuffs like cash, computers, etc., to someone else or a stranger. Can you imagine how dangerous that is? That is similar to wallets and exchanges having control of your private keys.

Yes, I am familiar with the case when my friend’s wallet data was hacked, knowing only his phone number. Fortunately, I managed to contact technical support and restore everything. But for him it was very scary ...

[Freewallet]

"Not your keys, not your funds", that is usually the advise given to many newbies storing their assets on exchanges. Apparently, there are some mobile wallet providers that controls the private keys like Word blocked because repetitive posts. Using such wallet is just as bad as storing on exchanges because they can also hold your funds whenever they desire and there's nothing you can do but to comply with whatever requirements they need. Your assets may still be released but imagine the inconvenience and the lost opportunities.

it is still 100% better to use wallets where you control the private key.


I've posted a similar topic in another forum

Hi there,

We are disappointed to hear that (to quote it) "using our wallet is bad". We can definitely state that we receive overwhelmingly positive feedback, both in our regular customer requests and public reviews. It perfectly shows that our customer service is efficient.
Getting to the main point:
Our wallet is custodial and we thus do not share PK with the individual wallet addresses.
However, should you have any concerns or queries, we are always ready to address them in public and provide you with the best solution possible.

[Zed0X]

We are disappointed to hear that (to quote it) "using our wallet is bad". We can definitely state that we receive overwhelmingly positive feedback, both in our regular customer requests and public reviews. It perfectly shows that our customer service is efficient.
Getting to the main point:

Our wallet is custodial and we thus do not share PK with the individual wallet addresses.
However, should you have any concerns or queries, we are always ready to address them in public and provide you with the best solution possible.

The point is you have complete control over other people's funds and that you can withhold them at anytime. The only way users can gain access again is by undergoing KYC procedure. That's something crypto exchanges do and not wallets. 

[bee]

The point is you have complete control over other people's funds and that you can withhold them at anytime. The only way users can gain access again is by undergoing KYC procedure. That's something crypto exchanges do and not wallets.

And that's the fact, some asset storage services don't notify at the beginning (at least on the homepage of their site/app or notification popup when opening the app for the first time) that they will enforce KYC for asset withdrawals later. They even prefer to represent their features such as easy registration and deposit with attractive bonus offers rather than requirements that must pass by their users along with the consequences. I think it's a bit of a trap. However, the user's assets are the user's full rights.

[Freewallet]

The point is you have complete control over other people's funds and that you can withhold them at anytime. The only way users can gain access again is by undergoing KYC procedure. That's something crypto exchanges do and not wallets.

pls see the reply below