CoinFieldlatest release: 2.6.0 ( 26th July 2021 ) last analysed 23rd September 2021 Custodial: The provider holds the keys
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Do your own research!
Try out searching for "lost bitcoins", "stole my money" or "scammers" together with the wallet's name, even if you think the wallet is generally trustworthy. For all the bigger wallets you will find accusations. Make sure you understand why they were made and if you are comfortable with the provider's reaction.
The Analysis ¶
Taken from CoinField’s Play Store description:
CoinField is a regulated European-based fiat-to-crypto exchange, which operates in 193 countries globally. The trading platform, built with advanced technologies, allows fast trades, a smooth user experience, offers top-of-the-line security and has an extensive cryptocurrency portfolio worldwide.
CoinField is an exchange app and additionally, claims to be regulated. This makes our verdict for it lean towards a custodial nature.
Its transfer fees are indicated on this page.
From the User Agreement:
In the event of a suspension, the Company may limit your access to all or a portion of the Services and/or freeze or lock your Digital Assets to prevent you from withdrawing or trading your Digital Assets
Upon installing the app and registering an account, you are given a Demo Account. Accessing more features such as depositing BTC requires identity verification.
Under Section 5 of its Support Page:
CoinField™ uses 3 different advanced wallet technologies to keep assets and transactions safe: Cold Wallet: Cold storage wallets are kept offline in a secure safety deposit box that is only retrievable only if the two founders are present at the same time. This process protects our exchange from intrusion when hackers attempt to breach the platform. Hot Wallet: Enables accounting of digital currencies during an influx of deposit requests. Warm Wallet: Wallet for daily cash flow required by our platform operations that are stored in our digital Secret Vault for absolute maximum security.
Under Section 7 of the same:
Any suspicious account activity will immediately put the account on hold for administration review and verification.
Under Section 4 of the same:
We use Multi-sig wallets that require more than one key to authorize a digital transaction. This ensures the responsibility of transactions are delegated to make sure all transactions are legitimate.
This app is custodial therefore not verifiable.
As the provider of this product holds the keys, verifiability of the product is not relevant to the security of the funds!
As part of our Methodology, we ask:Is the product self-custodial? If not, we tag it Custodial!
A custodial service is a service where the funds are held by a third party like the provider. The custodial service can at any point steal all the funds of all the users at their discretion. Our investigations stop there.
Some services might claim their setup is super secure, that they don’t actually have access to the funds, or that the access is shared between multiple parties. For our evaluation of it being a wallet, these details are irrelevant. They might be a trustworthy Bitcoin bank and they might be a better fit for certain users than being your own bank but our investigation still stops there as we are only interested in wallets.
Products that claim to be non-custodial but feature custodial accounts without very clearly marking those as custodial are also considered “custodial” as a whole to avoid misguiding users that follow our assessment.
This verdict means that the provider might or might not publish source code and maybe it is even possible to reproduce the build from the source code but as it is custodial, the provider already has control over the funds, so it is not a wallet where you would be in exclusive control of your funds.
We have to acknowledge that a huge majority of Bitcoiners are currently using custodial Bitcoin banks. If you do, please:
- Do your own research if the provider is trust-worthy!
- Check if you know at least enough about them so you can sue them when you have to!
- Check if the provider is under a jurisdiction that will allow them to release your funds when you need them?
- Check if the provider is taking security measures proportional to the amount of funds secured? If they have a million users and don’t use cold storage, that hot wallet is a million times more valuable for hackers to attack. A million times more effort will be taken by hackers to infiltrate their security systems.
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