What are centralized wallets and decentralized wallets, what types are there, and what are the main differences between them? Find out in a minute 🔥👇
1) What are centralized wallets?!
This is a centralized wallet or one that belongs to a center, and this center can control it while you do not own the recovery phrases. Where is this wallet? It is on platforms like all trading platforms such as Binance, OKX, Gate.io, and others. These are centralized platforms, so when you create an account and deposit your balance into the platform, it is in a centralized wallet created for you by the platform.
What are the disadvantages of these wallets⁉️
The disadvantage is that your balance is not yours because you do not own the wallet’s recovery phrases, so they can freeze your balance and prevent you from withdrawing, among many other issues. You can only trade the currencies available inside the platform through this wallet.
What are its advantages?
It is easy and fast and does not require expertise, suitable for beginners.
2) What about decentralized wallets?
It is not subject to or controlled by any third party, and you have 100% control over your wallet, including phrases, keys, balance, currencies, and anything inside the wallet.
What are the advantages of these wallets?!
No entity can freeze your balance or stop withdrawals, but hacking is common, so be cautious of connecting to untrusted sites or signing transactions you are not familiar with.
You can trade on all networks and on decentralized platforms like PancakeSwap and Uniswap, and your balance is 100% yours. They are widely used for airdrops, subscriptions, meme coin trading, and much more, and do not require verification.
What are the disadvantages of these wallets⁉️
If you lose or forget the 12-word recovery phrase of the wallet, you will not be able to recover it or your balance inside it.
What are the most famous decentralized wallets?!
Meta Mask
It has most networks, but its main use is on BNB and ETH networks.
Phantom
It has more than one network, but its main use is in trading meme coins on Solana.
Ton Keeper
Dedicated only to the Ton network and is used for trading NFTs and Ton network currencies, and it was mainly used in bots on Telegram.
