Topic: Stay away from centralized wallets - page 2. (Read 3960 times)

centralized wallets are not always safe, but if you hold your keys and your data correctly maybe nothing bad happens, Coinomi if you don't back up your keys it's the same it will be lost and the team won't help

In my opinion, for you to safeguard your crypto coins you have to save and keep safe the private key or seed. You will not know when a wallet provider stops working or will experience something that would prove disadvantageous to you. Centralized wallets does not provide you any full access to a private key or seed as they are the sole keepers of your crypto coins. A decentralized wallet has better security and can protect your assets.  If you don't have the seed then you don't own the coins.

 I agree with you, I have also had issues with these centralized wallets and finally switched to Atomic Wallet after doing a few hours of research. One issue I had with one centralized wallet was relating to scanning a QR code, I had a bad camera so I wasn't able to scan. On the contrary, wallets in which you have private keys are much easier to recover.

Coinbase is a very good platform and one of the most popular too but the centralized part is why I find it hard to use, I've had painful experience with Xapo wallet and till today the team aren't been helpful, the reason why the whole crypto space makes more sense is keeping funds yourself without any eye preying, decentralized wallets gives you complete freedom over that.

Exactly. It's best to use a wallet you can fully control in order to avoid facing undesired situations in the long run. Sometimes you'll have to sacrifice convenience on top of security/reliability. I'd prefer to use a non-custodial wallet (or decentralized wallet) even if it's not as easy to use as a centralized one. As a golden rule, never leave substantial amounts of crypto in an exchange. There have been many cases where exchanges experienced massive losses in crypto due to a hack. Unless the exchange makes use of a multi-sig wallet (where both you and the exchange hold a key to gain access to the funds), I'd avoid storing most of my crypto on them for the long term.

Nonetheless, we cannot avoid people from using centralized wallets altogether. Newbies will find centralized wallets a more attractive option than decentralized ones because of their easy learning curve. The responsibility of managing, storing, and securing your crypto funds will lie on the company itself. This makes centralized wallet providers similar to traditional financial institutions (like banks). As long as you follow necessary security precautions when storing your crypto in a decentralized wallet, you can feel confident that your funds will remain untouched forever. Just my thoughts

Yes absolutely agree with you. I know there are many big names involved with some wallets but it's still risky. And this whole market is based on decentralisation bso why you use abbasic thing like a wallet which is centralised. And this market there are lots of good option available you can find many alternatives. So can easily live with them plus your asset will be in your hand. But if you think that you can go with centralised exchange or it is easy to use them. Then you can go. That's it.

It's always better to store cryptos on wallets that gives you 100% access to your funds. With the rate at which cryptocurrency exchange are been hacked this days, you never can tell which wallet provider would be next. I had to learn my lesson the had way few months ago when EterbaseExchange was hacked and I'm still praying that everything comes back to normal because I have some funds on the exchange.

That's certainly true, mate. Hardware wallets are the safest option around for storing large amounts of crypto. The only downside is that most of these wallets are expensive, increasing the level of accessibility to the average person (especially those in developing countries like Venezuela and India). The cheapest route would be to create a paper wallet or a multi-sig wallet that would secure your crypto funds as much as possible against external attacks. Of course, nothing is perfect. No matter which type of wallet you use, it's your responsibility to protect your crypto funds against hacks, theft, or any other undesired situations. The aforementioned risks will always be there regardless of what precautions you take yo secure your crypto funds. As long as you stay updated with the latest trends in the crypto/Blockchain space, you'll be able to minimize these risks as much as possible.

Nonetheless, centralized wallets will continue to exist as long as people in the mainstream world continue to patronize them. After all, these type of wallets are easy to use among everyday people. The responsibility of updating and maintaining wallets, as well as, securing crypto funds will lie on the company or service provider instead of the end user. As long as you never store large amounts of crypto on a centralized wallet, you'll be able to achieve piece of mind in the long run. Just my thoughts

If you cannot stop yourself from using a centralized wallet do not store a huge amount of Bitcoin, you should have full control of all your funds with no third party interference, this is what Nakamoto wants and what you should do to all your coins, you should be aware what wallets are centralized and what wallets are decentralized.

Luckily i haven't see any problem in Coinbase wallet since i use it. It is unfortunate for you to lost your account.
Their support should be able to help because the password of your account should be exist on their database and they are the one who can recover your account, that is centralized wallet.

Centralized wallets are easier to learn and use. In addition, newbies will not need to bother with generating keywords. However, I do not recommend anyone to use such wallets for a long time.
Now on the Internet you can find a video or step-by-step instructions on how to create and use any wallet. This would be a good start for newbies.

Yes I also think that centralized wallets are not good. They are catch many people eyes because of marketing or the amount they spend on marketing. I always prefer decentalized wallets which are preferred by official projects or I use official wallets. And if you still want to use multi wallets there are lots of option available. You can try math,exodus and many more available. When you use decentralised wallets your asset are in your hand. I think everyone one should use decentralised wallets. That's it.

wallet centralization has been a bit dubious these days, because of the bad news about the exchange,
Kucoin users are victims, of course most will have doubts, Coinbase and Binance have better security systems now,
but I don't recommend you keep all your money there.

While it's clear that centralised exchanges and wallets are under the scan now, I think coinbase out of this list is trustable and they won't steal the keys but them getting hacked or played by a malicious actor is definitely in the picture.

Yes, mistake like that often happen to newbies because in their experience they also don't exist so they think the private key is not important to them, even though in general the private key is a very important code to be stored and should not be arbitrarily inputted into sites that are not important not trusted.

The mistake that is often made by newbies is that they cannot maintain a private key and consider it trivial to store in a centralized wallet. Even though centralized wallets are very vulnerable to hacks.

For newbie I think a centralized wallet is a good start, with a centralized wallet we don't need to be afraid of losing assets, because if we forget the password we can still reset it
Whereas in a private / decentralized wallet, if we lose our private key, our assets will not be able to return.

The best option when forced to deposit assets into a centralized wallet is one that manages to deal with hack cases and guarantees the return of customer assets. I am sure that trusted wallets will not block accounts just because of its asset value. Large wallets and exchanges are often the target of hacks, it is only natural that they apply extra security by blocking suspected accounts.
But anyway this is not recommended, it is better to keep privatekey yourself.

The safest crypto asset storage in my opinion is Storing using a Hardware Wallet. This method is the safest and recommended way to store your crypto assets. Especially if the amount is over $ 10,000. if you use a hardware wallet you will feel safe interacting with any site on your PC or mobile. There is no need to worry about installing applications from the Internet because the hardware wallet private keys are sealed inside the device and cannot be stolen by other parties.

yes. At least recently there have been new projects that use a centralized wallet, because I entered my email there. While there is no theft, I don't think it will be a problem. If indeed the wallet monitors our private keys, I am fine as long as they don't steal from us. and hence, they should be more responsible because the ownership of the wallet is influenced by them too.