What are the risks associated with using Freewallet for storing digital currencies?

3 answers

• Jesus GarciaApr 06, 2024 · a year ago
  When using Freewallet to store your digital currencies, there are several risks you should consider. Firstly, Freewallet is a custodial wallet, which means that they have control over your private keys. This introduces a central point of failure, as if Freewallet's servers are compromised or they become insolvent, you may lose access to your funds. Additionally, there have been reports of security breaches and hacks targeting Freewallet in the past, which further highlights the potential risks. It's important to weigh these risks against the convenience and ease of use that Freewallet offers. Consider using a hardware wallet or a self-hosted wallet if you prioritize security over convenience.
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• Jesse CriddleApr 25, 2023 · 2 years ago
  Using Freewallet for storing your digital currencies comes with certain risks. One of the main concerns is the lack of control over your private keys. With a custodial wallet like Freewallet, you are trusting them to safeguard your funds. In the event of a security breach or if the company goes bankrupt, you may lose your assets. It's always recommended to have full control over your private keys by using a non-custodial wallet. Additionally, it's important to do thorough research on the reputation and security measures of any wallet provider before entrusting them with your digital currencies.
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• Alexander BelovDec 08, 2021 · 4 years ago
  While Freewallet offers a convenient way to store your digital currencies, it's important to be aware of the associated risks. As a custodial wallet, Freewallet holds your private keys on your behalf. This means that you are relying on their security measures to protect your funds. While Freewallet has implemented various security measures, including two-factor authentication, there is still a risk of hacking or other security breaches. It's advisable to consider diversifying your storage options and not rely solely on one wallet provider. Consider using a combination of hardware wallets, paper wallets, and self-hosted wallets to mitigate the risks associated with storing your digital currencies.
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