BitfortipLatest release: 2.0.1 ( 20th August 2021 ) 🔍 Last analysed 21st October 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 ¶
(Analysis from Android review)
Bitfortip is an app where users can ask other users to complete tasks for btc rewards.
Find a item (i.e. a dress ) that you saw on a magazine,website, Pinterest or Instagram and you don’t know where to buy it online. You can upload it as photo using your smartphone and ask bitfortip members to search it online for you in order to win the Bitcoin reward
Find a better price for an item that you want. Offer a small Bitcoin reward for members to search for you online.
Find a piece of information on the internet that you can’t find on your own. Post an inquiry along with a bitcoin reward for people to find you a certain link, image, e.t.c.
It does not sound like it’s meant to store or manage bitcoin, but this line in the description states that it is possible to hold btc.
When you sign up, a unique crypto addressed will be generated in your account. After you fund your account, you will be able to post an inquiry with a reward of your choice.
We tried the app and created an account. There are community tabs for users to answer and ask questions and a tab to view their wallet balance. Users are provided with addresses and QR codes for BTC, BCH, NANO, and Tezos.
Trying to buy BTC will prompt the app to ask users to download
There is an option to withdraw beside the bitcoin balance. The app asks users to specify the receiving bitcoin address and the amount of BTC to send. The transaction is verified through email.
Users may send crypto to other users on Bitfortip’s platform or withdraw to their own external wallets. As the funds are stored on this platform and there is no mention of mnemonics, we can assume that this is not a self-custodial project. As such, this app is classified as custodial and thus 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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