Topic: Stay away from centralized wallets - page 6. (Read 3960 times)

It is true that many have experienced disappointment due to using centralized wallets, because it is like a bank in the real world.
We must be willing our funds being controlled by third parties, which results in us no longer having privacy.Therefore, it causes
many centralized wallets to impose KYC procedures, which can lead to misuse of data. It is advisable to store coins on hardware
wallets or decentralized exchanges.

You are so right brother, Centralized wallets are not the way to go currently in this industry especially if you value the safety of your money. Just consider this bug issue that occurred with Yam project what if any centralized wallet also has a similar bug? This will lead to huge funds of wallet from users. I think we all need to stick to non custodial wallets such as Vidulum, Guarda and Atomic wallet.

I only make use of centralized wallets when I'm withdrawing to cash.. centralized wallets are a total RIP off..  and theres a popular saying.. "not your keys.. not your funds"

Exactly. Decentralized wallets are the best way to secure your crypto for the long term. As long as you hold the private key, you can feel confident that your funds will be safe no matter what (only if you follow necessary precautions to secure it). Most newcomers into crypto are often inclined to centralized wallets, because they're much easier to use than their decentralized counterparts. For storing small amounts of crypto, they work just as intended. But if you're planning to store a substantial amount of money in crypto, then using a decentralized wallet is the way to go. This includes both software-based and hardware-based wallets.

Personally, I use Electrum alongside a hardware wallet like the Ledger Nano S for complete control of my Bitcoin. Since I hold the seed (and private keys), I can retrieve or recover my funds at any point in time. That's not possible with centralized wallet providers like Coinbase or Xapo, as they control the keys themselves. If there's a hack or the company goes down, you'll lose all of your hard-earned money along the way. With decentralized wallets, the risks of hacks or theft are reduced to the bare minimum. Not exposing your private keys to the public, conducting sensitive transactions offline, and even using multi-sig will allow you to have complete confidence and control over your crypto balances with a decentralized wallet. Even so, many people will continue to patronize centralized wallet providers due to their easy learning curve. At least, people have a choice to choose from one type of wallet to another thanks to the decentralized and open source nature of crypto. Just my thoughts

We never had the chance to get first-hand info relating to the choice of crypto wallet. Those who introduced us to crypto were users of centralized wallets so we had to follow their recommendation. When we finally familiarized ourselves in the space we realize there were equally good alternatives. I'm currently using Atomic Wallet which is a non-custodial and supports multi coins. You have access to the private keys to each asset on a different blockchain, making it easier to export your wallet at any time. The only time I use centralized wallet is when trading and even with that I usually use https://changenow.io/ as don't actively trade lately.

The use of decentralized wallet is the best way to save crypto assets. That is why i always give gratitude to the fact that i knew the difference between centralized and decentralized crypto product right from the moment i joined crypto space. I advise everyone to move their assets to decentralized wallets

You are right. That is why we have to use decentralized wallets. Advantages of decentralized wallets over centralized ones is the security which it posses. The Decentralized wallets does not depend on any third party services. The entire control of the wallet remains in the hands of the users.

I never trust any website to have my coins or any kind of money there. Whenever I find a need to use some of the wallets like blockchain.info or another like or the ones you have mentioned I just use it for one time for transact the money NOT KEEPING IT for long time and I always have backup codes and all the things to secure my wallet in case something wrong happens I have all the evidence to show it to the support or to someone else.

TEX-LXRY

I think you cannot always be opportuned to stay away from centralized wallet, because one way or the other, you have to use centralized wallets, example can be our top exchange platforms.

Also, the best you can do is to keep your profits and funds away from centralized exchange platform when you are done trading.

Centralized wallets are not safe for holding coins, once they exit scam or hackers take control of the platform you will lose access to your coins and tokens and there is no way to recover the coins

Good advice for newbies who don't know the difference between safe and unsafe crypto wallets, the only way to recover your funds easily is through private keys and recovery seeds, thanks for sharing and I hope they listen

Yes you are very right, storing coins worth of huge amount of money in a centralized wallet can be very dangerous, thanks for sharing this, I hope newbies learn from this post.

The only unsafe wallet that gives users full control over private keys is metamask, the reason why I feel this wallet add-on is unsafe is because of few bad reviews about metamask, few people complains about stolen fund and I think it will be more vunerable to hacks because it works on browsers

Exactly. No one serious about crypto will rely on centralized wallets for long term storage. It's evident that providers such as Coinbase, Binance, and Xapo are subject to hacks and theft. Besides that, these companies are the sole custodians of private keys giving them complete control over your hard-earned crypto funds. Remember, "not your keys, not your coins". It's best to use decentralized, non-custodial wallets for your own safety. While decentralized solutions are not a "silver bullet", they can protect your crypto funds for as long as you follow the necessary precautions to secure them. In the decentralized world, the responsibility lies in the person himself. This could lead to undesired accidental losses, or theft. If you follow the necessary guidelines to secure your crypto with a decentralized wallet, the chances of this happening are very slim. Those who don't want to take responsibilities, will go towards the easy route which are centralized wallets. I guess that's why most people have chosen centralized wallets over decentralized ones.

Nonetheless, we cannot force everyone to use decentralized wallets as not everyone is knowledgeable about crypto. For newcomers, centralized wallets prove to be an easier way to get access to crypto. If you decide to go this route, it's best that you never store large amounts of crypto on a centralized wallet. Otherwise, you'll lose all of your hard-earned crypto in an instant. Just my opinion

Centralized wallets are wallet that does not give one full access over it asset, but give room for some to sell it asset. E.g Coinbase and others
Decentralized wallets are wallet that give one full access of over it asset.
 considering both the centralize and the decentralize wallet they are ok, if wallet platform is good, so that is it. stand to be corrected.

One of the most basic information every person should learn before investing in the cryptocurrency industry is on the types of wallets and how to safe guard wallets. The centralised wallet is not different from keeping one's fund on an exchange. Its wise to only keep residual or spare funds in a centralised exchange because anything can happen.

Nicely said mate, any wallet from big or small crypto companies that doesn't give users their private keys should be avoided, anything can happen to them at any time and you won't be able to withdraw your coins, I hope people takes this very serious because it's a big truth about centralized wallets

thats why a lot of people give a suggestions to use a hardware wallet, i think its safer
because since 2017, i use ledger nano s as my main wallet to store my cryptocurrency i never have any issue

I like others, lost millions on MT.Gox in 2014 and time to time I see big exchanges going bye bye, pay attention to old timers and advice from them, might save you.

quite right, even for small amounts, it is better to use a secure storage method. As the saying goes, "whoever cares about himself, God protects him"