There are many cryptocurrency users that will never send their coins to hot wallets, especially those that are controlled by a single entity such as Cryptonator. The reason is that if you do not control your funds, something could go wrong.
Exchange wallets get hacked and the consequence, most of the time is that the funds are lost, sometimes irreversibly. This is a reason to make sure that any wallets that you choose to send your coins to are reliable and feature advanced security. In fact, it’s best to use a wallet that you control the private keys and those that you can store your digital assets offline such as hardware and paper wallets. This is especially so if you have a large amount of funds that you intend to put in the wallet.
Overview of Cryptonator
Cryptonator is an online wallet that features buying and selling of coins. Several of these coins are supported but they are stored online at the portal of the wallet service which the user has to sign on to before assessing.
There are many online wallets that have proven to be dependable and trusted by millions of users. Most of these wallets actually claim that they can be trusted but there are some such Cryptonator that raise more questions that are unanswered.
Keeping User Login Details
Some users of this wallet claim that they suspect that the wallet company actually has access to the login details of coin owners using their platform. This could be the reason behind many reports of lost funds as a result of using the wallet. This is despite the fact that the platform claims that it has processed 100 million transactions.
Stuck Funds That Cannot Be Accessed
Some users reported that they used the wallet without issues until at a point when they could no longer withdraw their assets. One user, after several chats with the support was finally dismissed with a terse email from the Cryptonator support:
We really wanted to help you out. However, after all these insults, you are alone with your problems. Your tickets will not be answered.
This was after difficulty in trying to login to their account to make a withdrawal of their coins.
Transactions That Never Confirm
There are few times that a user may not be able to withdraw their coins if the network is really congested, but it is uncommon for this to happen in a particular wallet repeatedly, especially when there is no serious network hitch. Several users of Cryptonator wallet reported stuck funds that they no longer are able to access because they were never processed.
+1 Definitely a scam site. I had put different coins in their online wallet and now I’m not able to withdraw them. Each withdrawal I started for DASH or LTC goes to “pending” and stays like that for days (I have pending withdrawals that are 5 days old!!!). Support does not reply to my emails and I’m really sad with those thefts!
According to the representative of the wallet who responded to the scam allegations, the reason why any transactions could be lost on the wallet is if it is below the minimum threshold that should be sent.
However, most of the complaints involve funds that are much higher than the minimum that the company supports according to its terms of service. Moreover, most reputable wallets are designed to make it clear to the user if the fund that they’re about to send is below the minimum. They also make it obvious if the transaction fee would deliver the coins quickly or not.
More Issues While Using Cryptonator Wallet
Another user wrote:
I sent some BTC from online wallet on cryptonator and they didn’t arrive yet nor they aren’t in blockchain.info as a trade (transaction ID). Nobody from Cryptonator responds [to] me to any of my mails nor tweets….are the bitcoins lost?
Technical Failure With 2FA Integration
There are users that have complained that they lost access to their coins by adding a simple 2FA to their wallets. Even though this could be a technical issue, why would a wallet company not fix issues as simple as this. What may be even more distressing is that connecting with the support could take days according to reports.
I enabled 2-step verification via google app authentication to log in on my account. But after I enabled it from the site, I did not receive the code on my mobile! So I cannot log in now. I do not have access to my coins. There is no support team for this online wallet. The robot cannot do anything.
According to him, the support was inaccessible and he got this message from the bot:
SUPPORT IS OVERLOADED WITH REQUESTS. FIRST RESPONSE TIME 48-72 HOURS
Deposits Not Reflecting
Among the many issues noticed with Cryptonator is that users sometimes send funds that never reflect on their wallets. Here is an example from a user rs7000:
Beware [of] Cryptonator, I put ether and 18 days after, my account is still not credited, so far many people complain about the same problem.
They have funds in ether at this address 0x0975CA9F986EeE35F5CbbA2d672ad9bc8D2a0844 but do not credit user accounts. And not only in ethereum but in all different currencies. In short, pay close attention to Cryptonator. You risk losing your money.
It could get worse with Cryptonator with this. Some users actually see the funds that they sent to their accounts as “pending” for some time. Ares_69 alleged on Bitcointalk that:
On December 22, I made a deposit of 0.04 btc in Cryptonator. It immediately came out reflected in my Cryptonator wallet as “pending”. 2 days later it disappeared without further ado. I have written 5 emails without any response.
Obviously the transaction is confirmed in the blockchain. If we are several people affected by this theft, do you think it would be possible to take legal action against them?
Locking Users Out
A wallet that could lock you out isn’t really worth using. Granted, there may be people that have used this wallet without issues, but why risk your funds if they could get stuck or worse when there are reputable wallets and exchanges to safely store or buy/sell your cryptocurrencies?