Topic: Stay away from centralized wallets - page 3. (Read 3937 times)

Doesn't the Trust wallet belong to the Binance exchange? I do not trust wallets located on exchanges, as well as wallets that are in any way connected with exchanges. The best wallet is a wallet to which you have both private keys and keywords.

I think BitGo is the exception. Considering that it's a multi-sig wallet, your funds are still safe even if the company ceases its operations in the future (please correct me if I'm wrong). But centralized wallets without such a feature bring additional risks to the end user. I'd personally stay away from centralized wallets provided by companies like Coinbase, Xapo, and Blockchain.com. Since you don't hold the private key, there's no guarantee your funds will be recovered after hacks, theft, or the company shutting down its "doors" to its customers. Always remember: "Not your keys, not your coins". As long as you choose your wallets wisely, you'll be able to prevent many undesired losses in the long run.

All in all, people will choose the type of wallet they seem to fit best for their daily needs. We cannot force everyone to use decentralized wallets, as not everyone has the same tastes. Most people prefer centralized wallets because they're extremely easy to use. With no handling of private keys or seeds, centralized wallets prove to be a nice entry point for the newcomer in crypto. As long as you never put large amounts of crypto on a centralized wallet, the risk of loss will be reduced as much as possible. Just my thoughts

Centralized wallets do not matter if they have a good security system, and you live in the area of the exchange,
of course it is very easy for you if there are problems, exchanges must have certification,
otherwise it is also risky for your crypto assets, exchanges are good for trading in the short term, not the long term

A lot of people say it on the forum very often, "don't store your coins on exchanges or centralized wallets", but for some reasons some people fail to listen and they later regret it. No matter how big an exchange is, you don't have control over your coins stored on it because you don't have access to the private key. And we have seem a lot of times that any exchange can fall victim of hack and you could lose your money. Store your coins in your wallet where only you have the private key and full control over it.

The condition could get to the worst if the exchange are incompetent in keeping their asset and instead stashes all their coins in a wallet and once it got hacked it's gone just like what happened in the past. the top tier exchange though invest heavily on the security since they know that without the security they are nothing and probably went bankrupt due to the hacking and client distrust anyway. I mean it's still fine to use centralized wallet provided by exchange temporarily .

I trust some of them. Take, for instance, BitGo. Many users rate this wallet as the most reliable. Firstly, the security level of is very high — two signatures are required for the transaction, the keys are stored on the platform and on the server, before using the funds, authentication is required in two stages. Secondly, the funds are not only protected, but also insured, which opens up great opportunities for entrepreneurs.

Hardware wallets are definitely more secure. But most people wouldn't want to spend money on a separate device just to get access to crypto. A wallet software is more economically viable for the general public even if it sacrifices security/reliability of a person's funds. Even paper wallets are practically free to use by anyone interested in preserving crypto for a long time. Centralized wallets are practically "online wallets" because their interface is accessed through a web browser. There's no way to backup private keys or seed since the wallet provider is the sole custodian of your funds. If the wallet becomes hacked or the underlying company ceases operations, you can say goodbye to all of your hard-earned crypto. Considering that the risks outweigh the benefits, it's recommended to store minuscule amounts of crypto when using a centralized wallet.

Nonetheless, people have a choice thanks to the decentralized and open source nature of crypto. For different needs, will be the type of wallet to use for all of your crypto transactions. The more alternatives emerge, the better it'll be for the long-term health of the entire crypto/Blockchain ecosystem. As long as you follow necessary security guidelines, you can protect your crypto funds against hacks, theft, or other undesired situations in cyberspace. Just my thoughts

centralized wallets are very risky especially if you hold large amounts of assets. My advice is to use a trusted wallet such as Trust wallet or Coinomi. and safer if you use a hardware wallet. I never use or store assets in centralized wallets. i use trsutwallet wallet to store top altcoins and MEW to store the erc20 platform based tokens.

I think its better not to be profitable than to expose a valued asset or coin to an unsafe centralized or wallet exchange from my own view, having a lot or huge amount of coin needs to be kept away from hackers whereas centralized wallet are very prone and vulnerable to hacking. recently Kucoin was hacked, although as you rightly said centralized wallet has option for keeping other type of coins however I would rather exchange those coins to BTC or ETH thus leaving just a small portion in any of those wallets.

Centralized wallets provide no security at all. The exchange may block your assets on any suspicion, may require identity verification, or a hacker attack may lead to the loss of assets. Storing assets in centralized wallets has always been insecure. This is convenient if you need to quickly sell or buy. Coins are always on the exchange and you can quickly manage them, but you need to assess the risks, whether it is worth it or not.

Except we just want to stay away from profitable coin in this market, this information on centralized exchanges does not scare as they present. Binance had this hack and Kucoin just had his but they are still offering services. Some exchanges are well prepared to handle some of this challenges and they make the right provision for it. Centralized also give opportunity to multiple chain wallets that most DEX does not, more also the transaction fee on the DEX are still crazy, so we cant because of security alone just would not take the risk in this profitable market.

What do you mean by centralized wallets? Are those wallets from the centralized exchange that provide centralized wallet? If it is then yes, it would be good to store all crypto in an offline or non-custodial wallet. No one can access your digital wallet except you and yourself. The only problem is that when you lose the password, private key or seed phrase then no one could access it and it will be forever stored in your wallet. LOL, Custodial wallet to which wallets usually provided by centralized exchange or centralize wallet itself is not secured for the third party that offer the service could see and has the hold of your private key but whenever you lose the password to their wallet then you can just send them request to change your access password and let you open your digital wallet after it is change.

Anyway, as others had mention that non custodial wallet should be preferred and the best thing that you can do is make a back up on your password, seed phrase and private keys in a notes or docs. stored in USB, other ways that it could not be access online by the hackers and scammers using malware programs.

We can't come to a conclusion, centralized wallets are high risky. We need to find the trusted one, and make use of it. With decentralized wallet if something goes as an error it'll end up losing. We can't claim it anywhere else, but with trusted centralized wallets we can request help from the support team.

Recently due to a small error more than ten million worth cryptocurrencies got hold in a wallet. Finally the error was being solved with a cost of very few dollars. Think a situation where there is no solution for the error, all the funds go wasted.

I agree. Hackers are getting clever each passing day and they usually target centralized sources. It is better to hold your own private keys then to let someone else manage it for you that way if your wallet gets hacked it would be because of your own fault and not some centralized source

That is correct but sometimes thises centralized wallets give you some services that DEX could not give you those, like staking, swapping, and liquidity mining, for example, I used to have CS in my cold wallet but forgot to swap it and now it moved to another blockchain and my tokens are worthless!

Im also using a centralized wallet (its our local wallet here), but my only purpose for using this is because of the convenience to cash out and because it has also features that you can pay directly your bills and top up your phone instantly. Other than that I dont store my coins for long period there, its risky. If you dont hold your private keys then its not really secure.

Centralized wallet usually more convenient than decentralized wallet.
On centralized wallet, you can have more than 1 coin there, such as btc, eth, xrp, usdt, all in your single account.
Using decentralized wallet is secure, but it needs more knowledge to use it so we can manage our wallets effectively.

and besides what hinders people to use ledger or trezor?when these two are the safest place to keep safe our crypto assets?

yeah it is expensive but what is more important our assets or the hundred or more bucks but to keep safe our crypto assets?

LOL. all wallets are third-party apps so never expect them to be decentralized.
There is no exclusive wallet application for any blockchain. We need to accept that. If you do not trust the above applications, you can choose a trezor or ledger. They seem more secure.

Coinbase is centralized and custodial wallet, Did they gave any information to someone when hacker stole the users fund by phishing? No!

Centralized exchanges cannot do anything, they can give you the transaction hash which you can just see it by yourself.