Topic: Stay away from centralized wallets - page 9. (Read 3960 times)

Centralised exchange can actually help one recover their lost fund in case you lose their login details.  However, some of the do lock one out. Decentralised wallet advantage is huge because one can easily plug to exchanges and trade from his/her wallet. Like INJECTIVE PROTOCOL  exchange is designed to be a second layer exchanges that is border less on other DEX. It will be easy for one to have access to different exchanges to trade.

if trading is not a problem, but for investment you have to keep it in a decentralized wallet, of course for the long term it will be safe,
like Myetherwallet, Ledger, Blockhchain.com

indeed, only the money that you use for trading you can keep on the exchange. I have already lost some money on the exchange several times due to hacker attacks and now I do not keep money on the exchange

There are positive points in a centralized wallet because we are practically in control of our privacy and we are certain of the transactions carried out. However, any error in transactions is practically irreversible and this also occurs in a DEX. This comment that I'm making is for personalized/personal wallets and in particular the wallets centralized on websites or cloud should be studied personally with great caution.

You have not given the disadvantage of decentralized wallet that people are compelling to use. For a newbie, it is generally advisable to use a centralized wallet because it is generally easy to use and you can easily recover your wallet back in case you don't know the password. This is entirely different for DEX wallet because it is more complex to use

Centralized wallets are same thing with centralized exchanges wallets, they give you no private key for your wallet on any exchange that's why it's bad to leave your coins and tokens on any exchanges even if it's a big or popular exchange

Exchange wallets & online wallets are not safe. There is always a risk when you keep your funds at there.You should use a hardware wallet. It's the best way to keep your funds safe.

Thanks very much for the reminder. I have also had similar problem with Coinbase. Recovering your wallet is very challenging which is different with non-custodial wallets.I use Atomic Wallet as well and I recover my wallet more often. Sometime I clear it's app data and once I open I'm being required to restore and the process is smooth and fast. This is what's nice and critical about non-custodial wallets.

To make sure that your hodls are safely stored on any wallets whether it is decentralized or not, that is still our responsibility. We can educate ourselves online on crypto really work so we are sure that everything is secured.

Exactly. It's all about convenience rather than security/reliability. At least, that's the mentality of most people nowadays. As long as a centralized wallet is easy to use, nothing else matters. Wallets of this type are much easier to handle for the average person than decentralized ones since there's no need to maintain custody of private keys. All the hard work is done by a third-party. Of course, this brings many security risks to user's funds. Knowledgeable people in the crypto space will definitely use decentralized wallets and services because of this. But the average Joe doesn't have time to study how to properly secure crypto funds, leading it to use a centralized wallet instead.

I guess that for each situation in life will be the wallet to use for crypto transactions. I'd suggest anyone to only store minuscule amounts of crypto on a centralized wallet, just to be safe. A decentralized wallet is a must for large crypto balances. Here, it's best to use a hardware wallet for maximum security against the latest threats in cyberspace. In a world where malicious hackers come up with schemes to steal your hard-earned money, it's best to rely on maximum security in order to reduce risks as much as possible. Even so, we cannot force everyone to rely on decentralized wallets and services in the crypto space. The best thing we could do is give our advice to everyday people in the mainstream world. But the ultimate decision would lie on them, whenever they'd want to continue supporting centralized wallets and exchanges or all the other way around. Just my thoughts

Centralized services do not only store our personal information such as private key but also our personal information. Although this is against the vision of cryptocurrencies, unfortunately, all the leading services of this sector are connected to a center and these services have a great knowledge. If you ask my personal opinion, I think that stealing this information will cause great difficulties. In fact, data theft will be much more dangerous and potentially more difficult than a possible material theft. For this reason, I think it is necessary to stay away from decentralized services as much as possible. Of course, it has to store some data in decentralized services, but we know that they are safer compared to other decentralized competitors. Unfortunately, it is not possible to stay private in the digital world or keep your private information private, no matter what.

It doesn't mean they will seize your money. You are good to go with freewallet. But it's a reminder that if you somehow lost you passphrase, you might have lose your assets as they are not decentralized. Rather I will suggest you to choose any decentralized wallet. You will be free from headache, just keep your all type of private keys safe.

I'm using Blockchain wallet for more than 6 years and I haven't faced any issues with the wallet. But recently I've became a fan of Trust Multichain Wallet. It is fully decentralized and I have full control over the wallet.

Are you sure? I'm holding there on Freewallet quite a large amount and everything is OK. I've just provided them all the required info and keep holding my crypto there.

Those are good wallets mentioned there but I will rather stick to my personal free mobile wallets. At least I won't wake up to stories of hack one day coupled with inability to even access exchange or withdraw from the exchange at such difficult time. Moreover, what ever centralised wallets can offer, sex wallets can too.

The centralized wallet is certainly not safe to hold crypto. Many times there are different problems. But this does not mean that the top wallets are not good. Many users are using these wallets. Even sometimes I use the coinbase wallet (small amount) myself no problem found. But I have control of the rest of my fund. Because I use hardware wallet.

We have seen many drama in thus regard and have warned many newbies about hosting your bitcoin funds into a centralized wallet because many of these wallets will always request you to give them the access to your private keys which suppose not to be. Though, during my early days, I was caught up with some centralized wallet and was messed up as the funds disappeared from my wallet. When I laid a complaints against the company, I never retrieved my funds back again. Centralized wallets, never again.

There are issues with most of the centralized wallets. Coinbase restricts your account if they found you to be using gambling sites. Xapo excessively increased it's withdrawal fees and I left using them. Freewallet is a scam, they'll scam any large amount. For Nexo, I'm using it as a bank account and I have no personal problems from the site itself.

You forgot to mention that there are dozens of scam wallets that have no reputation and security what so ever, so they can be hacked or the owner may turn greedy anytime, in both the cases you will loose your funds and coins so stay with top reputed wallets preferably decentralized.

This is a known rule - if you don't control the private key, then you don't control your coins. But for some it's more convenient to use centralized wallets, I do not understand them, but I don't condemn them. It is a personal decision and a personal responsibility.