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From the stories around lost coins on a hot wallet, here my observations regarding the causes.

Bitcoin Reddit

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Wrong or right? But it seems most of the wallets get robbed because:

  1. User made a swap or purchase using a 3th party platform which apparently somehow may expose your private keys

  2. User have stored funds through a paperwallet swap or similar by importing a seed

  3. An external attack: installing a malicious app or sharing seed to a 'support' or any other ochestrated scam which pushed the user to share volonterly the seed

This leave a very small number of cases and risks of seeing coins gone from a self-custodian wallet purely because of the wallet: virus , update coming directly from the wallet provider. Let's take the top opensourced wallets.

In that sense I think the hot wallet are fairly safe if you rule out the risk 1,2 and 3 no? Basically if you do generate a seed from a clean device, you don't engage in swaps, buys through 3th parties, and you don't engage with odd apps and online scamers...then most likely you are safe.

Agreed, disagreed? What are your thoughts?

submitted by /u/RunAndHeal
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