I think one of the very special features of cryptocurrency is the wallet. Not like traditional stock or asset which you can only put it in the exchange or print it out as a paper. Cryptocurrency’s wallet feature is a significant improvement which provides an innovative and convenient method for owner to store they money.
I bet every one of you have the experience of using the wallet to store your altcoin, no matter online or offline. And I bet every one of you must have heard from you friends that you have to properly protect your wallet, including the password, private key or backup, etc. However, is it enough?
The reason I am writing this post is, when I browsing around Reddit yesterday, I saw a post which mentioned about an incident of a cryptocurrency wallet. Actually, I think I should not only call it an incident, it should be a scam. If you want to see the full detail, you may simple click on the link I provided above. But please let me give you a brief summary of it.
The story starts from a user who purchased IOTA, and he would like to use a wallet to store it. And, you know, IOTA stores the coins in the tangle so actually user can connect his stash using any of the wallets as long as he use his unique seed. So, the user downloaded a seed generator and generated the seed for the transfer of his IOTA.
And that was the nightmare start, after he transferred his IOTA from the exchange, he though his altcoins were properly safeguarded, and went to sleep. However, the next day when he checked the balance, he found that it become 0. And that’s why he posted it on Reddit and tried to find the solution for it.
After a lot of discussion from different people all over the Reddit community, he found that it is because he downloaded a scammer’s generator. And when he double checked the generator, he found that actually the generator generated the same seed every time. And that’s it, all his IOTA was gone, and it was about 50 BTC. I cannot imagine how sad he could be.
I wrote this post here would like to remind you all that only password, private key or backup is not enough to safeguard your altcoin. Especially when there are ICO almost every day, you can never sure that whether a wallet of those related tools is safe to use. So, please do pay attention when you try to transfer your altcoin to the wallet, and do perform some more research on whether the wallet is safe to use. As you all known, for altcoin holders like us all hate scammer, and please don't give them a single chance to steal the coins from you.
May the coins be with you.
Thanks for reading, I hope you enjoy it!
And please follow me and see my other post if you like it: @victorier