Can Hardware Wallets Steal Your Coins?

Discussion in 'Digital Currencies' started by TreasureHunter, Dec 20, 2022.

  1. TreasureHunter

    TreasureHunter Well-Known Member

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    Hello,

    Hardware wallets have a software platform/app like Trezor and Ledger have. These remind me of "decentralized" software wallets like Atomic Wallet.

    And, all of these somehow remind me of the cryptocurrency exchanges. Which tend to lose/steal/block access to crypto.

    Can hardware wallets steal or "forget" your crypto? Or block your access in any way?
    After all, it goes down to software...

    Ledger has a software, the hardware part is used for validation/signing (like: you can't transfer the funds away), but it's the software that shows you how much you still have.

    Atomic Walllet is a software wallet and quite a dodgy one. Many problems, scandals even about "forgotten"/LOST crypto, which simply vanished from the wallet. Some people complained about not being able to transfer their crypto away from Atomic Wallet (especially true for people with large funds)....

    So, is there any possibility to lose crypto through hardware wallets?

    I get it - software wallets are dodgy and less trustworthy, but why would I think hardware wallets are better?

    Good-old (first generation) Bitcoin Core wallets (and similar ones) had less safety features, but at least you didn't appeal to a 3rd party to "guard" your cryptos (like a hard wallet), so the coins were always at your disposal.
     
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  2. Polar.bear.Stacker

    Polar.bear.Stacker Well-Known Member

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    Yes, your wallets hold your coins. Hence they can be stolen
     
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  3. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Coins aren't stored on wallets and AFAIK in order to hack a hardware wallet you need physical access to that wallet. So don't lose it, store private keys etc securely and only buy genuine products.
     
  4. TreasureHunter

    TreasureHunter Well-Known Member

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    Yeah, I know. I just don't trust the software :D
    It is nice to have a Trezor or a Ledger device, but the software might have a "backdoor" too.

    Some software wallets (like Atomic) are know to "forget" coins. One moment they are in the wallet, the next day they're gone.

    Of course, the keyphrases are often cross-wallet compatible, but then again: even if you move to another wallet, it too has a "dodgy software" behind it.
     
    Last edited: Dec 20, 2022
  5. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Any Trojan installed by manufacturers is akin to them signing their own corporate death.
     
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