Bitwala Launches Bitcoin Wallet - How Safe Is It?

Though BitGo was the wallet software used by Bitfinex who lost $60m of its customers’ funds, Bitwala says it will still work with the provider as it launches its wallet services. Bitwala has added a Bitcoin wallet onto its platform to allow users to pay and send Bitcoins from within the Bitwala site through seamless website integration.

In a statement, the platform which enables sending money abroad and paying bills with Bitcoin in 17 currencies, announces that the wallet will allow users to have full control over their money.

It also supports Dash and Steem

Jörg von Minckwitz, CEO of Bitwala, notes that usability is vital when handling expenses with Bitcoin, and Bitwala is a step closer in bringing the currency into the mainstream as the wallet makes spending, holding and sending Bitcoins and Fiat easier.

It has also added Dash to the list of accepted Altcoins and Cryptocurrencies. This is after the addition of Steem and the release of Bitwala messenger earlier this month to allow users chat and make payments at the same time.

Supposedly, when these additional services combine with the existing ones such as international bank transfers, debit cards etc they have the tendency to draw more users, as well as security issues. But Bitwala makes sure it applies high-security standards and compliance for its customers.

The issue of Bitfinex and stolen Bitcoins

In his blogpost, Bitwala’s co-founder Benjamin Jones says the problem of stolen Bitcoins from a BitGo wallet arose not from the BitGo software but how it was implemented. He explains that the Bitfinex setup allowed the attackers to gain access to at least two keys of a cold wallet requiring 2 of 3 keys to access the funds. He adds that BitGo could have raised some kind of alarm with such abnormal behaviour and their API documentation points to an insecure implementation.

Thus, Jones believes that BitGo is still the right choice for Bitwala because “BitGo is an extremely convenient and secure system when properly implemented.”