[redder23]

Even the real version is the app is a software wallet right? If you have almost 500k in BTC and do not have it on a hardware wallet and use their official software for it, I have to say it's at least partially on you if you lose it.

[popey]

Indeed, the victim, in this case, did mention on the linked 4chan thread that they realised their mistake. While we only see a small part of their world through text communication on forums, I suspect they're kicking themselves in the real world.

Or perhaps not, and they have a ton of other wallets full to the brim with crypto-nonsense.

[ramijames]

It wouldn't matter. If your seed phrase is exposed, you lose all funds.

[redder23]

You sound like you do not understand hardware wallets. The point of the hardware wallet is that you NEVER EVER expose your seed phase you basically hammer it in some metal or buy something that survives fire with your seed phase, and you NEVER EVER type it into any program, nor to you write it down from a computer screen but only directly from the wallet device. If anyone is dumb enough to go through the setup process of a hardware wallet and STILL end up typing their seed phase into some software wallet, then it's on them.

So hell yeah, it would matter, because that setup process alone makes you understand crypto better and why it's isolated from your PC. As others mentioned, that person later realized this.

[reisse]

Bitcoin "wallet" is just a pair of public and private keys. Honest question - what is the difference between a "hardware wallet" and a thumbdrive with the keys on it, except for the price tag?

[jstanley]

When you plug a hardware wallet into a computer it can't get the keys off the wallet. It can only ask the hardware wallet to sign a transaction, and the hardware wallet asks the user to confirm.

When you plug a thumbdrive with keys on it into a computer the computer can just take the keys.

It's the same as the difference between a YubiKey and a thumbdrive with GPG keys on it.

[Osiris]

They exploited the change address which most crypto hardware wallets don't show when verifying a transaction.

[lightweb]

Bitcoin wallets are collections of private keys and corresponding public keys. They may or may not also be linked together hierarchically using ECDSA math, and possibly encrypted as well.

[ravenstine]

If it's being used as a "savings account", there really isn't a meaningful difference, although it can be superior because a hardware wallet is more likely to be targeted for an exploit than some rando thumb drive that no one knows the location of or knows exists. This goes against everything that r/bitcoin would say, but lots of those users are similar to those infosec guys who consider all electronics "unacceptably compromised" while completely ignoring the actual risk level in reality and accepting certain tradeoffs.

A hardware wallet can make sense for "checking" purposes, but if you're only moving around small amounts of money occasionally, then you have to ask yourself whether one is worth using over a wallet app on your phone when the latter is more convenient.

[LASR]

Well the big difference is that keys can't be accessed in a hardware wallet. If you accidentally plug in the USB drive into some untrusted box, you could potentially have everything stolen.

> some rando thumb drive that no one knows the location of or knows exists

You still have this option with a hardware wallet. eg:

> some rando hardware wallet that no one knows the location of or knows exists

[ravenstine]

> Well the big difference is that keys can't be accessed in a hardware wallet.

In theory.

> If you accidentally plug in the USB drive into some untrusted box, you could potentially have everything stolen.

This is like saying that no one should own a gun because you might point it straight at your own head and pull the trigger.

> You still have this option with a hardware wallet. eg:

Yes, that is true, but a hardware wallet is an extra piece of hardware that needs to be actively used to provide HD wallet keys for transactions. If all a person wants to do is store BTC for the very long term, then this approach is more complicated and hazardous than storing a non-HD wallet key pair on some physical medium; this is because a hardware wallet failure can result in loss of the ability to sign transactions, and chances are you're storing the seed phrase separately. Again, just for long term storage, there's next to no advantage between storing a seed phrase for an HD wallet and storing private and public keys. Depending on what a person intends to do with their money, a hardware wallet may provide zero value over the least complicated approach. Unless someone is paranoid over other people or the government knowing their balance, a single public address is more straight forward than managing an HD wallet.

[redder23]

You sound like you really do not want to understand this at all. It's COMPLETELY different.

[csomar]

The hardware wallet is a bit more than a thumbdrive. It's a signing device.

[yieldcrv]

amusingly, adhering to that victim blaming advice wouldn’t have avoided being a victim here