bit4youLatest release: 3.2 ( 12th November 2022 ) 🔍 Last analysed 20th July 2022 . Custodial: The provider holds the keys
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 the answer is "no", we mark it as "Custodial: The provider holds the keys".
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.
Help spread awareness for build reproducibility
Please help us spread the word discussing the risks of centralized custodians with bit4you via their Twitter!
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 ¶
(Analysis from Android review)
bit4you is an European crypto assets exchange platform, facilitating the first step into the crypto world. Buy and sell your favorite crypto assets on a nice and easy way with bit4you. Once you feel comfortable with the crypto trading on your demo account, you can easily switch to real funds within the same account.
bit4you is an exchange platform.
Unless otherwise provided by law, BIT4YOU may decide to terminate an account without having to give reasons, notice, formalities or indemnities to the client and will not be required to send any notification of refusal to the CLIENT but may According to its assessment, immediately close or suspend the CLIENT’s wallet (or) and consistently refuse all exchange orders[…]
From Terms and Conditions, section 24. It is capable of suspending a customer’s wallet.
The CUSTOMER may receive CRYPTOASSETS in his CRYPTOASSETS WALLET whose address is generated and accessible via the WEBSITE or the APPLICATION.
We were not able to find private key backup or importation functions.
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