Topic: Stay away from centralized wallets - page 4. (Read 3960 times)

Although non-crypto related, it kinda reminds me of the story of my friend that got his PayPal account locked for no reason.
To sum it up from that story of my friend, I don't want to hold any kinds of currency into the internet handled by a 3rd party.
Everyone should learn what does "owning your money" really mean sometimes.

The only thing centralized wallets did wrong is anonymous private key and recovery seeds, users have no control over their funds, but Centralized wallets and exchanges have good advantages over decentralized exchanges and wallets, on Centralized platforms you can easily trace stolen funds or block an blacklist hackers and stolen funds

Decentralized wallet is secure, and also insecure if you lose keywords to centralize wallet Gmail. We all want control on our money, either exchange or wallet. Suppose you have some money in kucoin exchange but after being hacked you can't withdraw it. The same way Binance exchange was locked after being hacked. My bad is that I still don't use any decentralized wallet, maybe coinomi wallet next.

Besides getting control of your private keys, you'd need to follow some necessary security precautions in order to avoid many undesired situations in the future. A non-custodial or decentralized wallet is not a "golden pill" that will solve all of your problems. While it's much safer to store your crypto this way than using centralized wallets, you'd still need to keep an eye out for malicious actors in cyberspace. As long as you take responsibility of securing your funds properly, nothing should go wrong. For true security/reliability of large crypto balances, it's recommended to use a hardware wallet at all times. Otherwise, you can lose your hard-earned money as a result of software issues, bugs, etc.

Nonetheless, there's nothing we can do to make people use decentralized wallets on top of centralized ones. The vast majority of people prefer centralized wallets on top of decentralized ones because they're extremely easy to use. There's no technical knowledge involved when using a centralized wallet other than knowing the basic stuff (sending/receiving crypto and inputting public addresses). Despite the high risks of storing crypto on centralized wallets, they're still popular in the mainstream world. Ordinary people will continue to use centralized wallets for mainstream crypto transactions, while the rest will use decentralized alternatives to reduce risks as much as possible. It's rather a person's choice from one type of wallet to the other. Just my thoughts

One of the worries if you are using centralised exchanges, is that they can mandate what they do to your coins. As you said, they can lock your account for no valid reason. So it is better to own your wallet with your own private keys and such. At least you have the full control of your funds and you don't have to worry that the exchange will get it from you for no reason.

Absolutely right, from top wallets centralized and decentralized both are safe to me. I'm using a coinbase wallet since I know about this wallet. I don't face any single problems. But I have some login problems in my coinbase mobile wallet, just take more time. I'll switch to a decentralized wallet. Although I think op lost something, that's why his account didn't recover.

As far as I know, Coinbase account can only be created using an email and password and there is no way you will lose access to that account as long as you still have your email. It's also very secure and when you want to login they have a verification mode where you will have to verify the login using your email. So, I don't see what's wrong with Coinbase, they even store coins in cold storage, so I don't see what problem you have with them..

I think you have a point but let's look at it from a different perspective. one typical issues is convenience. How are you going to feel when you have to go through stress (KYC) to access your own money? Situations like this can make you loose your find. These are some of the reasons why we always recommend non-cutodial solutions. I personally use Atomic Wallet and I can easily export my private keys and recover it on a different wallet. This is exactly what we call freedom

I think people should use wallet that can give you access to your private keys and dont keep your money on exchange. They will lock your account for no reason.

It's best to save the private key or seed for future reference. You'll never know when a certain wallet provider stops working or experiences an undesired situation. Still, centralized wallets don't give you access to private keys or a mnemonic/seed, as companies are the sole custodians of your crypto funds. A decentralized wallet gives you better control and security over your crypto assets. Remember, "not your keys, not your coins". If you can't get access to your private keys or seed, then the crypto funds are not truly yours. It's always best to choose decentralized or non-custodial wallets for your own benefit.

Ultimately, it all comes down to an individual's preference above anything else. Newcomers will always choose centralized wallets because they're easier to use and extremely convenient. But crypto veterans will choose decentralized wallets because of their top-notch security and reliability. As long as you take proper precautions to secure your crypto, nothing should go wrong. Just my thoughts

We should not using centralized wallet too often, better to use our own wallet for long time.
Cryptocurrency nature is decentralized, so it is best to use the decentralized wallet as well.
Im only using centralized wallet such exchange wallet for trading, buying or selling coins only.

What you can lose but don't lose your private key then the same things happen to you in a decentralized wallet like an atomic wallet. A decentralized wallet is secure and you have only access. Centralized wallet is also secure. I used one of the centralized wallet. Coinbase has had a successful history since 2012.

Every centralized wallet isn't unsecure, there are more number of centralized wallets into usage. I believe centralized wallets are error free than the decentralized ones. I state it based on the support provided by the centralized platforms which we can't expect with the decentralized platforms. Centralized wallets at times scam the people and run away with the funds. Whatever it is, we need to be aware and use the one with good reputation and not the new ones.

that's the right action, indeed to save crypto currency is not in an exchange, but in a private wallet,
it doesn't matter if you save it in an exchange, but the exchange must have high trust

Thats true, its not safe if you dont hold the keys of your wallet.
They can freeze your account for no exact reason and it happened to my friend using our local centralized wallet. Thats why decentralized wallet is much safer because you have the full control of your coins.

The first thing I learned is to always control my coins and I cannot do that if I will be using a custodial wallet, I only put my coins in an exchange if I am going to trade it right away I have at least 4 noncustodial wallets in my desktop all password protected including my computer.

Ledger nano is a safe place to store your cryptocurrency assets
wallet centralization is indeed very helpful and simple but still has many shortcomings including only exchangers that have private keys and are prone to hacking, maybe later there will be a blockchain-based wallet neutralization solution

A centralized wallet should be considered as a disposable wallet, not the wallet where you are planning to store the bulk of your coins for a long time, it's risky doing this the philosophy that your keys not your wallets always applies, you should only use centralized under unavoidable circumstances.

What do you think about a wallet exchanger like bnb? do they use a centralized system?
Regarding the wallet you are talking about, that is, it is true that there is identification of asset monitoring, on the other hand this also has benefits for users who often forget. I mean here that because users register with email so the wallet has a "forget password" feature to open their account. I think trying to see things from both sides is a good thing.

I believe that centralized wallets are those wallets that request for email account to log in, they don't give users opportunity to store their recovery seed or private keys themselves, instead they are in possession of their customers keys, this is totally unsafe for anyone