At the moment I’m using a hardware wallet but it was quite a big learning curve for me. I work as a software developer so the concept of private keys isn’t new to me but even with a technical background it took a lot of reading and research to figure out how everything works. Also copped the gas fees to make a small deposit from the exchange to the wallet and then reset the wallet with my seed phrase to make sure I didn’t mess anything up before transferring the rest.

Even reading through a few threads in this sub and I see other people also get confused about how seed phrases and wallets work and I don’t blame them. I also have a few friends who just got into crypto and don’t want to take their coins out of centralised exchanges because they think it’s still a lot safer and easier to deal with there.

IMO the user experience of wallets and safely storing coins can still be improved, but keen to hear what everyone else thinks too.

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This Post Has 4 Comments

  1. poofyhairguy

    I personally hate soft wallets. I have lost about 4 Eth total due to the nature of them. Meanwhile I was able to recover the Eth I had in Coinbase by proving my identity which is currently impossible with a soft wallet. Also there is the stories of people losing money to fake soft wallets on the App Store, which is all the symptom of the same problem: the philosophy behind soft wallets is being personally responsible for your crypto and password/passphrases and a lot of people (like myself) aren’t good with that sort of responsibility.

    I am not against all wallets, I really like my Trezor for example. But I made my Trezor all about the physical security of the item instead of all the passcodes and pins: my pin is on tape on the back of my Trezor. Sure if someone can get access to it they can clean it out, but I will never accidentally lock myself out of it like with soft wallets in the past.

    Asking people new into crypto to buy a hardware wallet is a bit much, and I think leaving money on exchanges is a decent middle ground. The community needs to eventually understand for many people that extra layer makes crypto more useful. Instead of demonizing the exchanges we should push people who know they aren’t going to be able to keep track of a soft wallet property into exchange diversity: aka put a little in Coinbase put a little on Krakken and so on.

    Same thing with staking: stakers with less than 32 Eth are pushed to a Rocketpool which I am pretty sure people in the US shouldn’t touch because of the liquidity tokens. Instead we should push people to diversify their staking and stake across exchanges and what I call “easy pools” (aka Stakewise).

  2. hblask

    I think it OK to take baby steps, starting with a centralized exchange until you understand it more, then slowly working your way into the ecosystem.

  3. YesButMaybeSo

    I don’t know how people with IT backgrounds, especially programming, can have problems with hardware wallets. I work with my hands and it wasn’t bad. Once you get your key phrase safely stored it’s hard to mess up. Lose your ledger? No problem buy a new one.

    I will say maybe user friendly usage could be improved. As far as gas costs etc.

    I think the way to look at wallets is the way it’s kind of manifested. You have choices. Want a little cash on an easy access platform with a little bit of “insurance”? Use an exchange. Want easy access with no insurance? Use a hardware wallet. Don’t trust hardware wallets? Paper wallet but no ease.

    I think due to the nature of how permanent decision making is in crypto it really doesn’t have much more room to evolve. There is no refund so checking transactions is key.

    Again if you want “refund possibilities” or “insurance” you pretty much need a third party. When the third party is neutral that’s ok, when the third party is malicious it isn’t ok.

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