Hot wallets Your favorite crypto wallet , Decentralized or centralized wallet

[Josemendez]

The cryptocurrency world have experience two different form of Wallets , one is called a centralized wallet run by a centralized exchange platform and a Decentralized wallet. The centralized wallet is controlled by the creator or owner of the exchange and users do not have full control of their funds .
Decentralized exchange is not controlled by anyone. One enjoys full control whenever he opens such wallet. He is offered private keys which is the only way through which one can access the wallet.

Most times people for security reasons prefers to save their funds in a Decentralized exchange because once a centralized exchange is compromised , the users funds is at risk .However for trading purposes people prefer to use centralized exchange.

Which of these two exchange do you prefer to use and why ? I use Decentralized wallets all the time and use the centralized exchange whenever I want to convert to Fiat Currency.

 

[Mika]

Well, based on what I have read here, I think we all need to use decentralized wallets because we actually own the crypto currencies. But forgive me for my ignorance, I do not know about decentralized wallets. I use Coinbase and Binance, which are centralized wallets. Can you recommend any decentralized wallets for me?

 

[Sherman198]

Decentralized wallet is really the best if you want your cryptocurrencies portfolio secured from hackers or from any kind of infiltration. Centralized is good, but risky because of cyber attackers. I use Luno wallet, which is centralized though, but I can trade or exchange my cryptocurrencies in to another. I think I like that part!

 

[Chibson]

It depends on the purpose if you want to do your cryptocurrency because if you want to trade it as you have stated, it is better you use centralised exchanges such as binance, coinbase and so many of them also but if you want to hold it for a very long time then you have to use the centralised exchanges such as trust wallet and so many of them.

 

[Alexandoy]

If the wallet is decentralized and no one is in control now it makes me wonder how the operation works. Who is handling the system, who is backing up the database and who is doing all the other chores of the digital system of the wallet? Maybe your description is lacking in some details that made me confused how a decentralized wallet system works.

 

[Putta Vince]

I like decentralised wallets like trust wallet , atomic wallet , coinomi as well. These are the wallets you hold recovery phrase and can recover the wallets using 12 word confirmation. Whereas coinbase or blockchain required email authentication which is not so secured , in case you lose access to your Google or gmail account for some reason.

 

[Sotherefore]

When I am deciding a particular cryptocurrency wallet that I will need for my cryptocurrency ,there are a lots of things i put into consideration. Security is one of the first things I put into consideration when I am thinking of getting a cryptocurrency wallet and as a result of this I'll go for a decentralized cryptocurrency wallet.thats the most private and secured.

 

[btaliat]

We learn every day. But I would loved it better if the poster took his time to give us examples of those two types of wallets explained by him. When I registered with trust wallet, I was given a private key but when I did the same on coinbase, I wasn't. Does that mean trust wallet is a decentralized wallet?