Many people hold their cryptocurrencies on their phones by downloading wallet apps. Coinbase is one of the largest wallets in the world thanks to the amount of people who do this. This is despite the many warnings from people in the industry that high security is essential. Really, people should buy a hardware wallet or use a paper wallet. But with the rumours of the upcoming Samsung Galaxy S10 smartphone incorporating a built-in crypto wallet, will the security risks still be great or is this just a marketing ploy?
The wallet rumoured to be added to the Samsung S10 will be unlike the Coinbase wallet in that it will be a cold wallet compared to the hot wallet of Coinbase. This will certainly provide an added level of security. Unfortunately, there have been many cases over the past year of people being robbed, kidnapped, or blackmailed in an attempt to extort people of their Bitcoin.
In theory, there is relatively little to stop a would-be attacker attempting to gain access to your private keys through your phone. Of course, they could try this with any wallet, but unlike a hardware wallet, a phone is an item that most people carry around with them everywhere, which only adds to the risk.
However, Samsung itself (or any other person) will not have access to private keys, which is encouraging. As well as this, there is the added bonus that the wallet will encourage new users to learn about the technology and might increase adoption. Samsung has a huge market in South Korea, a country well known for its cryptocurrency enthusiasts.
A Samsung phone with an integrated wallet would be a big statement, but whether it is a marketing ploy rather than a substantial development is yet to be decided. They have previously looked into the mining industry, so the idea is definitely not far-fetched.
If or when it does come out, I would still recommend people sticking to a hardware wallet though.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.