Stay away from centralized wallets

[Twinkledoe]

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.

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.

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[Abiky]

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.

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

[leatutz]

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.

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.

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.

[jessyj48]

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

[isaac_clarke22]

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.

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.

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.

[semobo]

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

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.

[wack slacker]

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.

[Reatim]

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.

That right, you have to think logically to find the knowledge you want to get. You can find information from the many threads here. This is the field of science in my opinion.

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?

[bjmpoker001]

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.

[lienfaye]

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.

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.

[CoinThinker]

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!

[peterlustig]

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

[n0ne]

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.

[jademaxsuy]

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.

[ololajulo]

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.

[Altryist]

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.

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.

[gabbie2010]

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.

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.

[pandanaran]

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.

[Abiky]

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.

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

[bitcon]

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 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.