IMPORTANT wallet advice I think every user should know


There are RISKS to storing your ETH in an iOS/Android wallet, and you are obligated to TEST YOUR WALLET if you used myetherwallet.com to generate your wallet (their wallets should work just fine but they even tell you to test your wallet before offloading to it). Also if you use freewallet I suggest REMOVING YOUR FUNDS FROM IT ASAP see here for why.

An example: Jax for iOS is a closed source wallet — all iOS and Android wallets are compiled and sent to the app store. It is impossible to know what got inserted into there by the time you use it. For that reason I strongly encourage not keeping your ether in any iOS or Android wallet and also not keeping your ether in any exchange at. Both wallet apps and exchanges have been hacked or behaved dishonestly in the past and have stolen user bitcoin and ether. I believe the founder of jaxx has said as much as well – that his wallet is designed for convenience and not for large or long term storage!

you may think I am paranoid, however:

  1. here is an iOS wallet that just stole 8 million dollars from its users – this could happen to jaxx or any, any wallet you download from the app store

  2. here is a user who lost $50,000 because he generated a wallet at myetherwallet without first testing sending and receiving money

It is very important that you:

  1. generate a wallet from a source that you absolutely trust and that you

  2. store that wallet in a secure environment and that you

  3. test that wallet before sending all your ether to it.

If you search the sub you will discover some horror stories from folks who failed to follow through with these steps. They are not overly hard but are extremely important towards securing your investment.

FAILURE TO COMPLY with these pieces of advice may result in the absolute and total loss or inaccessibility of your ether, and in such a circumstance your ether is both non-recoverable and you are fully liable for the loss.


  1. get a USB stick and create a bootable version of ubuntu, there are many guides on how to do this. Here is one for Windows Users. Here is one for Mac users. Here is a video on YouTube for how to do it. By the end of this first step you should have a USB stick that you can boot Ubuntu from.

  2. download this website from here. Extract the contents of this zip to a folder on a flash drive. You can use the same flash drive that you just created for Ubuntu, just make a folder such as flashdrive/myetherwallet and stick the website contents in there

  3. You have to now boot your computer from the USB stick. Mac users can just insert the USB stick, hold option, power up their computer and then select “Ubuntu live cd” or “ubuntu”. Windows users have to follow these steps with the usb stick inserted and then pick the usb stick from a list of boot options.

  4. at some point booting from the usb stick, select “live cd” or “try ubuntu before installing”. NEVER EVER SETUP WIFI, UNPLUG YOUR INTERNET CORD IF YOU ARE WIRED IN!

  5. once ubuntu boots, find the flash drive in the file explorer with the website, and open up index.html

  6. think up a password (you absolutely shouldnt forget this) and click “generate wallet”. Then click “download keystore file” and find the file that got downloaded and STICK THIS ON THE FLASH DRIVE – you absolutely shouldnt lose this!

  7. write down the private key that they give you. Write it on paper, double and triple check it. Copy it to a text file and save it onto the flash drive. You absolutely shouldnt lose this!

  8. you shouldnt print your wallet unless you can connect to a usb printer. Otherwise you would need network access to print. What you can do though is click on “print”, cancel the print dialogue and then go to “file > save” and save the webpage on your flash disk.

  9. click next, select “Keystore File (UTC / JSON)” and then “select a file” and open the .json file you saved on the flash disk earlier

  10. you have now generated a wallet. Nice job. I highly suggest you now insert a second flash disk and copy EVERYTHING from the first one onto the second. Then store them in different places. The idea here is that you make several copies of your public and private key so you don’t lose them.

  11. NEVER EVER PLUG THESE USB STICKS INTO ANOTHER COMPUTER AGAIN – only access these USB sticks from ubuntu, booting it up the same way you did in the steps above ^

  12. You should now try sending something small like 0.001 ETH to this new wallet, and then use http://etherscan.io to make sure the transfer goes through.

  13. You should now try sending 0.001 ETH out of your new wallet to make sure it works. You should only ever send money from this new wallet by booting Ubuntu up and sticking the USB sticks into your computer. From an online computer go here and put your new wallet’s public address in, then click “generate information” and copy down gas price and nonce to a textfile on A NEW usb stick. Go back to your offline computer with ubuntu and open up index.html again and click “Send Offline” on the navigation at the top. Where it says “Step 2” insert the to address of your old wallet, and put 0.001 in for value, and then fill in gas price and nonce from the text file you saved on that new usb stick. Check the “keystore JSON” box and click “SELECT WALLET FILE” and give it the .json file you saved from step 6. It will now give you some long string of text. SAVE THIS TO THAT NEW USB STICK DONT REUSE THE ONE WITH THE .JSON FILE AND YOUR PRIVATE KEY! Stick this new USB stick into another computer, go here again, in the box labeled “signed transaction” paste that text you just saved in and click “send transaction”. BOOM.

if this works then you now a) know your brand spanking new wallet works and b) know how to do a super secure offline transaction – hackers be damned you’re pretty secure and safe now!


I believe an air gap generated paper wallet is the most secure approach, but if you want a hardware wallet I would read up on the Ledger and the TREZOR, although these are difficult to find right now due to large demand.



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One Response to "IMPORTANT wallet advice I think every user should know"

  1. Freewallet  October 13, 2017 at 2:35 pm

    Actually, the whole situation around supposedly stolen millions was a misunderstanding that came from the lack of information about how our cold storage technology works. Not a coin is missing from our users and we’re doing everything to keep it this way.

    If you have questions or concerns, please feel free to contact us to get more details first-hand.

    Reply

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