When we choose a wallet for holding cryptocurrencies, we often focus on press reviews and visual design. But the most important thing is what is inside the wallet 👀
There are 2 types of apps:
▶️ Open source code
▶️ Closed source code
Open source allows you to make sure that a wallet work as stated in the documentation. But if we use an application with closed code, then there are doubts about the transparency and of this wallet.
In crypto, it is believed that the wallet should have an open source code. It’s necessary for convincing users of the safety of their funds 🔒
The closed code indicates the lack of confidence of developers in eliminating all bugs. If you put such code on open resource, then in the case of error detection, an hacker can attack app successfully❌
Why are closed-source cryptocurrency wallets dangerous?
The creators of such wallets don’t take responsibility for the loss of user funds. If the developers are unknown (as Exodus or Electron Cash), then there will be no one to file a lawsuit against, and if they’re known, then it’s possible to receive compensation only if you have money and an international lawyer.
Closed source code of crypto wallet may mean that the head of the crypto company hide something from you.
Let’s look at several wallets for an example 👇
The Exodus wallet has an attractive design, simple functionality and it’s very convenient, but it has a closed source code. The developers of the wallet don’t give direct explanations about the cases of hacking.
Another example is the multifunctional Electrum Wallet, whose outer look and convenience are less attractive for users, but it is significantly ahead of Exodus in security.
What to choose?
Not convenient, but secure Electrum, which takes time to understand, or attractive Exodus, where all operations can be done in a couple of clicks.
⚠️ Probably most beginners will prefer Exodus, rather than spend time for understanding of the complex and incomprehensible Electrum.
FORSAGE recommend to avoid using closed source wallets. But if the desire is too great, then don’t keep all crypto in one wallet, use it for small payments and transfers.
Next week, we will talk about the most secure wallets where you can store most part of your funds 💯