COINOMI BITCOIN WALLET REVIEW FOR CRYPTO BEGINNERS

So, I have just downloaded Coinomi crypto wallet on my Android phone I’m a beginner with regards to bitcoin and crypto wallets. I just know that you don’t want to leave your private keys for your bitcoin or alt coins on an exchange in case they have a security breach. I heard about all the issues with Trezor a hardware wallet a few weeks ago Trezor — security glitches reveal your private keys. Some sort of software virus that hacks into the hardware I was thinking of getting the Trezor hard wallet, I decided against that until I researched, what the technical issues and pros and cons are before I make an informed decision about the Trezor or Nano hard wallet as these hard wallets are being touted as the best way to store your bitcoins, in various crypto websites.

There is a great deal of misunderstanding, even amongst people who consider themselves quite experienced and knowledgeable Bit coiners, about what a wallet actual is. You open your wallet software, it tells you how many coins you have, and you can then take coins out and give them to somebody else by just choosing an amount and clicking send. It appears, for all practical purposes, as if your coins are stored inside your wallet. In fact, that is not exactly true, let me break it down for you. So that we can understand how the blockchain technology works so you can choose wisely the way you want to keep your bitcoin information secure.

Your coins are not stored in any single location. They are stored inside the blockchain – a shared record which every part of the network uses. That is why you don’t need to have your wallet open to receive coins – because they aren’t sent to you, the shared record of ownership is simply updated to reflect the fact that you own them. This shared record, called the blockchain, is constantly updated with every transaction and therefore the balance of coins held by each address. To be able to spend your coins, all you need is to broadcast your wish to other people on the network, where it will be passed on and spread to everyone on the network. But to prove that you are the person who really owns that address and has the right to spend those coins you need to ‘sign’ the transaction with a kind of strong password called your ‘private key’ or ‘secret key’. Every address has a private key which is created at the same time as the address itself. It is this private key, which would be difficult to remember and awkward to type, which may be stored inside your wallet.
A wallet is therefore a piece of software, sometimes called client software, which at least provides the following basic functions:

• Creates new addresses with their corresponding private key
• Tells you how many coins are held by your addresses
• Uses your private keys to sign transactions so that you can spend your coins
  Any piece of client software may create and control multiple different addresses. This is useful as you can have, for example, an address for business and another for personal. Even if you do have multiple addresses, however, you can often take coins from multiple addresses to make a single payment. You can choose how many coins to take from each of your addresses using a feature called ‘coin control’ – something not every wallet will support.

Having an exchange store your private keys have the following effects:
• Higher transaction rates (They need to make profit too).
• Insured against hacks and loss of private keys.
• You are not given access to your private keys. (Security lapse for insurance for the company wouldn’t be covered then)
• Master passwords that you set allow authorization for the exchange to conduct the transaction.
• Forgotten passwords can be reset by hitting “forgot password”.
• Better UI.
• Customer Service.
• Technically less secure since the “Exchange” is a third party that is in between you and your signing of transactions from your wallet.
• Isn’t anonymous since the “Exchange” would either know who you are and/or would monitor your capital gain on behalf of the law.
• “Exchanges” are legal abiding. They are bound by the law. There isn’t any true privacy here. The opposite is true too.

However, if you do decide to store your private keys with you on person, it is recommended that you keep it offline and off your computer and any hardware or software that could be compromised since a private key if lost cannot be recovered. This means that you would lose access to your bitcoins forever unless you remember your key. Holding the private key with you on person would impel that you take complete authority for the security and anonymity of your account.

Why I have downloaded Coinomi on my android mobile.

cryptocurrency wallet with exchange functionality available on Android and coming soon to iOS. Not only is Coinomi secure, but it is focused on privacy, and allows nearly instant exchange between many different crypto coins. Since installation is easy and setting up the wallet only takes minutes, it offers crypto enthusiasts a great way to store and exchange cryptocurrency. With Coinomi, users can hold and exchange Bitcoin, altcoins, and tokens, without having to deal with annoying KYC regulations, as there is no registration process. With support for 278 altcoins and plans for further development, Coinomi is one of the most powerful multi-coin wallets on the market. Although other multi-coin wallets exist, Coinomi provides the greatest convenience, security, and features, all for the great price of free.

Coinomi Is NOT Open Source

Does this make Coinomi less secure, most people who are interested in cryptocurrency give preference to open source software, as they should, Coinomi was part of the open source software movement, allowing anyone to review their code. With peer review, any hidden code, malicious modules, or exploits would be easily identified. This ensures that users aren’t subject to any hidden malware that secretly benefits Coinomi or third parties. However, it seems that about a year ago Coinomi moved their project to be closed source. This is not to say that their code isn’t good or malicious, but it does mean that you don’t get the same amount of protection or transparency as you do with open source.
Private Keys are stored on your mobile phone: - Private keys stay on a user’s device, as this is a phone-based application, and not on Coinomi’s servers, so hacking Coinomi directly is a futile effort that wouldn’t amount to much. Coinomi is what’s known as an HD wallet. This means that when you initially set it up you’ll get a recovery seed that will act as your backup. Make sure to write it down in a safe, private place.
What Happens If I Lose My Phone – Are My Coins Gone?
Phones tend to end up destroyed, lost, or stolen. If a phone is stolen, a thief won’t be able to move funds from a Coinomi wallet or exchange currencies, unless they have the password. In any situation, Coinomi users can simply add their wallet to another phone by using the recovery seed.

Coinomi Allows for Nearly Instant Exchange

Coinomi is partnered directly with Shapeshift so exchanging cryptos quickly and on the fly, is simple. Truthfully, anyone who doesn’t want to deal with traditional exchanges and the security hazards associated with them should consider using ShapeShift. With ShapeShift, exchanging coins really is as simple as tap, tap, done (you can read our Shapeshift review here). In addition, Coinomi does not charge any additional fees, making it one of the easiest and quickest way to exchange cryptos.
What Coins and Tokens Can Be Exchanged Through the Coinomi App? In addition to bitcoin (SEGWIT, USAF, and BIP148 are supported), altcoins, and ether tokens can also be exchanged. In short, nearly any coin or token can be added to Coinomi so keep an eye out for new additions on a regular basis.

Coinomi Offers Unparalleled Privacy

Since most individuals who own cryptocurrency are searching for privacy first and foremost, it should be known that Coinomi does not collect any personal information AND it hides the IP address of its users to prevent prying eyes from gathering data on spending habits or transactions. Simply put, Coinomi does not provide information about its users to governments or third parties, an important consideration for nearly anyone involved in the cryptocurrency sphere. The number one fear for anyone with a cryptocurrency wallet is whether others can easily access it. With Coinomi, individuals who have who have unauthorized access to a phone, still couldn’t access the funds contained in it, as they need a password to perform exchanges or withdrawals. In addition, users are provided with a password recovery phrase that they can use to reopen their wallet on another device if they happen to lose their phone. In any case, there are no weak points of entry, if an attacker doesn’t have the password or the password recovery phrase.

Coinomi Is User-Friendly
As crypto becomes more mainstream, user friendliness is a must of any app looking to excel in the industry. Coinomi has a beautiful interface that nearly anyone will be able to understand. There are only a few options, like exchange coins and add another coin to the wallet. Just click, click, and enter. At that point, users with any level of crypto experience should be able to exchange in and out of coins without any effort. In short, command line mastery is not required to use Coinomi.
Downloading the Coinomi App
Coinomi is available to Android phone users. Apple users should stay tuned, as the iOS version will be out soon.
Installing Coinomi is easy:

• Click on Create New Wallet.

• Users will now be presented with a recovery pass phrase. Copy down this pass phrase on a piece of paper, or better yet, multiple pieces of paper and store them all in secure locations. Do not share this recovery phrase with anyone, as this is the master key to enter the Coinomi wallet from any Android device. With this pass phrase, anyone will be able to access their wallet, even if they lose their phone.

• After saving the password recovery phrase, users will be prompted to confirm it.
• Then, users will be prompted for a password. As with any password, be certain to use a wide range of numbers, letters, and symbols, the longer the better. While many experts recommend a password of at least 8 characters, even longer passwords are far more secure.
• Next, users will be asked to select the crypto currencies they would like displayed in their wallet.

• After that, users must agree to a legal disclaimer
• That’s it!
At this point, users can freely trade coins and have full access to their wallet. The whole process literally takes 3 minutes.
What Others Are Saying About Coinomi?
According to posts on Reddit, Coinomi representatives are very responsive, claiming that they have “hundreds of thousands of happy users” and that they “have been around since 2014 and none of their phone-based wallets have been hacked or otherwise compromised.” According to users, this appears to be the case, as there aren’t many saying anything negative about their service.
Currently, Coinomi does not accept fiat currencies, debit, or credit cards. In other words, they don’t act like Coin base, allowing users to enter the cryptocurrency space with fiat. However, all supported cryptocurrencies can be sent and received, simplifying the often-complicated process of holding and trading cryptocurrency.
Important Security Concerns to Keep in Mind
As with nearly any application, the main points of failure all dwell around human error. Since the Coinomi app is built for security, any security concerns will rest directly on users:
• Never give out the password or the recovery seed to anyone.
• Always update to the newest version of Android when using Coinomi to offer the highest level of security.
• Store the recovery pass phrase in a secure location to be able to access the wallet no matter what happens.
Conclusion – a great mobile wallet choice
The user friendliness of the Coinomi wallet, combined with unparalleled security is one piece of the puzzle when it comes to public adoption of bitcoin and altcoins. Since new users often aren’t comfortable trading on typical exchanges with numbers jumping around on both the ask and sell side, trading through Shapeshift simplifies the process tremendously. Anyone, even advanced users, would likely see the benefit of using the Coinomi wallet. The only concern about Coinomi is the fact that it is no longer open source. However, there are many excellent wallets out there that aren’t open source as well (e.g. Exodus and Jaxx). I love it anybody who can use a smart phone, laptop or computer and has a little bit of technical knowledge will love this wallet free secure and easy for beginners. If you like this post follow me on my beginner’s crypto currency journey up, downs, tears and laughter. Follow, comment, upvote and resteem all things crypto for beginners.
Source
https://coinomi.com/
https://www.reddit.com/r/Bitcoin/comments/6u7csc/trezor_security_glitches_reveal_your_private_keys/
https://www.quora.com/Should-I-keep-my-Bitcoin-on-an-exchange-or-in-a-wallet