Stay away from centralized wallets

[Abiky]

It's always better to store cryptos on wallets that gives you 100% access to your funds. With the rate at which cryptocurrency exchange are been hacked this days, you never can tell which wallet provider would be next. I had to learn my lesson the had way few months ago when EterbaseExchange was hacked and I'm still praying that everything comes back to normal because I have some funds on the exchange.

Exactly. It's best to use a wallet you can fully control in order to avoid facing undesired situations in the long run. Sometimes you'll have to sacrifice convenience on top of security/reliability. I'd prefer to use a non-custodial wallet (or decentralized wallet) even if it's not as easy to use as a centralized one. As a golden rule, never leave substantial amounts of crypto in an exchange. There have been many cases where exchanges experienced massive losses in crypto due to a hack. Unless the exchange makes use of a multi-sig wallet (where both you and the exchange hold a key to gain access to the funds), I'd avoid storing most of my crypto on them for the long term.

Nonetheless, we cannot avoid people from using centralized wallets altogether. Newbies will find centralized wallets a more attractive option than decentralized ones because of their easy learning curve. The responsibility of managing, storing, and securing your crypto funds will lie on the company itself. This makes centralized wallet providers similar to traditional financial institutions (like banks). As long as you follow necessary security precautions when storing your crypto in a decentralized wallet, you can feel confident that your funds will remain untouched forever. Just my thoughts

[Greatdev]

Coinbase is a very good platform and one of the most popular too but the centralized part is why I find it hard to use, I've had painful experience with Xapo wallet and till today the team aren't been helpful, the reason why the whole crypto space makes more sense is keeping funds yourself without any eye preying, decentralized wallets gives you complete freedom over that.

[FOPL]

Coinbase is a very good platform and one of the most popular too but the centralized part is why I find it hard to use, I've had painful experience with Xapo wallet and till today the team aren't been helpful, the reason why the whole crypto space makes more sense is keeping funds yourself without any eye preying, decentralized wallets gives you complete freedom over that.

 I agree with you, I have also had issues with these centralized wallets and finally switched to Atomic Wallet after doing a few hours of research. One issue I had with one centralized wallet was relating to scanning a QR code, I had a bad camera so I wasn't able to scan. On the contrary, wallets in which you have private keys are much easier to recover.

[iTradeChips]

In my opinion, for you to safeguard your crypto coins you have to save and keep safe the private key or seed. You will not know when a wallet provider stops working or will experience something that would prove disadvantageous to you. Centralized wallets does not provide you any full access to a private key or seed as they are the sole keepers of your crypto coins. A decentralized wallet has better security and can protect your assets.  If you don't have the seed then you don't own the coins.

[soetikno]

centralized wallets are not always safe, but if you hold your keys and your data correctly maybe nothing bad happens, Coinomi if you don't back up your keys it's the same it will be lost and the team won't help

[ahoenk]

I agree with your statement. Centralised wallet has a big risk. Why would you put your moneynon centralised wallet while you can used your own wallet.and again we never know is their server secure enough or no. Many decentralised wallet like trust and exodus which self custody.

[gamer4156]

I think this is pretty special and valuable for low asset moving on different records. Be that as it may, I really like Trust wallet as a decentralized wallet. There are heaps of unified wallet accessible and behind them they got some enormous name. That is the reason numerous new individuals go there . In any case, on the off chance that you definitely know this space or even began to find out about crypto space I would suggest you generally go for a decentralized wallet.

[iTradeChips]

centralized wallets are not always safe, but if you hold your keys and your data correctly maybe nothing bad happens, Coinomi if you don't back up your keys it's the same it will be lost and the team won't help

Obviously, in fact everything must always hold our keys and data, because it's for the sake of general security, especially for centralized wallets, obviously we always have to back up our private keys, this is where sometimes accuracy is always needed in terms of all security.

That is where the challenge lies, the storing of the keys is in itself a worrisome ask for most of the people new to cryptocurrency. A spreadsheet there, a notebook here, a password system here and there. Many tend to lose that information either to hackers or to computer persons able to get their data when they try to repair their devices. Many of the computer persons are aware of cryptocurrency and will do everything to get their hands to private keys and passwords.

[Bitstar_coin]

So far all the wallet i have used are wallets that i have my private keys, it is never a good idea to trust centralized wallet because anything can happen and you will be left with nothing,
there are many wallets out there which you can hold your private keys and have control of your funds. trust wallet is a good one.

[Miaallen]

Coinbase happens to be one of the most trusted centralised wallet if not the top in most of the European countries and the US. May be the support couldn't respond to your request because the piles of works or pile of support tickets available before yours came in. I use Luno and I've never had an issue unsolved with them. It is nothing but great experiences at all time.

[coin_1122]

I agree with your statement. Centralised wallet has a big risk. Why would you put your moneynon centralised wallet while you can used your own wallet.and again we never know is their server secure enough or no. Many decentralised wallet like trust and exodus which self custody.

Depend on the person they will choose a centralized and decentralized wallet, based on the user requirements he will choose to store in the decentralized wallet for controlling his own transferred, in centralized, there is risk involved to hold our asset in the exchanges. So better store them in our own wallet in order to control our assets.

[RabbiTANK]

If a Centralized wallet goes down it goes down with your funds, if a decentralized wallet goes down you can still import your recovery seed into another decentralized wallet to recover your funds, it's that simple as ABC, Centralized wallets isn't safe for keeping valuable assets

[satria157]

I think all wallets use tight security especially for wallets like Coinbase, how can your account be stolen, maybe you don't have security features like gauth or email verification. As long as I use my coinbase account there are no problems especially when it gets stolen and if that happens you might be mistakenly logging into the fake coinbase web

[CashbackLover]

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..

Lack of private keys and recovery seed can't be called secured in crypto space, coinbase is a perfect example of a Centralized wallet, any wallet that requires gmail account and password to log in is not secured, your email can be compromise, funds can get stolen, remember not your keys not your fund.

[cheezcarls]

I am starting to stay away from centralised wallets in terms of storing our coins or tokens. Not our keys  not oue coins. When the funds usually arrive to my centralised wallet, I immediately withdraw it to bank, mobile wallet or remittance. These centralised wallets have the power to freeze and limit your transactions. Decentralized wallets are the future.

[FaucetKING]

Code:

Any wallets that ask you create an account with mail and password is centralized, they monitor your private keys for you, be smart

That's not always valid, there might be some wallets who are not 100% centralized and they might ask for your email and for a password. In this case i will mention Blockchain.com wallet. It's true that these centralized wallets might even have the private key to your wallet and they might even scam like SpectroCoin. Be safe and use MyEtherWallet as your main wallet.

[DrBeer]

Centralized wallets or decentralized - the choice is only on the user's side! Each solution has its advantages and disadvantages, each has acceptable and unacceptable risks. Someone does not worry that he does not fully manage his wallet, for another it is important that no one except him can manage his assets. Someone believes in "a worldwide conspiracy of the holders of the private keys of our wallets", and some laugh at it. At the same time, everyone evaluates the situation subjectively, since there can be no real objective assessment of risks due to the huge number of nuances

[Alohadanc3]

A lots of wallets are available in the market at this point of time. Many of them centralized and some of them fully decentralized. I always prefer wallets which are fully decentralized. And normally i go for those wallets which are suggested by the coin or the official wallet. The main basic of the whole blockchain is we have the full ownership of our asset. And centralized wallets are fully opposite of it. Bbut there are many 3rd party centralized software or tools which are very popular in the community. So it's fine in some ways.

[maximumcoin]

Do you even know the difference between Centralized wallets and Dec wallets? Days back I lost my coinbase account and the team aren't helping, I'm glad I only have little Bitcoin on the account, would have been a different story if I use coinomi or atomic wallet because they give users 💯 control over their funds, private keys and recovery seed are important, always remember that

Example of Centralized wallets
1. Coinbase
2. Nexo
3. Luno
4. Xapo
5. Freewallet

Any wallets that ask you create an account with mail and password is centralized, they monitor your private keys for you, be smart

It would be very necessary when we restrict to use the centralize exchanges and hold money on it as less as possible. There were many attacts of hacker that aim to the centralize exchanges like Okex recently and there will be more especially when the cryptocurrency market is getting hot again as now.

[poodle63]

True, but there are also two options to make it safer even though it is not completely safe, for example, such as applying the Google 2fa code to the email and exchanges that we use with that email and applying the code in the form of SMS to our personal smartphone numbers, these are two things to support more security on every account we use, regardless of the wallet which has the private key and recovery seed.

This is actually true, most of the time the hacker just gonna stop their hacking activities right away when they notice that the user enables 2fa unless the hacker somehow got an access to the victim's personal information regarding phone number to somehow social engineer it's just near impossible to go through this security system.

But, centralized wallet still vulnerable against any potential threat that occurs from inside the platform for example when the centralized wallet decides to just steal away all the users asset. Though, I'd still prefer open source crypto wallet