What Is a Decentralized Wallet?

In contrast to centralized wallets (exchanges) where the private key is in the hands of a third-party service provider, the private key of a decentralized wallet is kept by the user themselves and the assets are stored on the blockchain, the user is the real holder of the digital currency, the wallet is just a tool to help the user manage the assets on the chain and read the blockchain data, so there is no way to control, steal or transfer your assets.

Therefore, decentralized wallets are difficult to be attacked by hackers centrally, and users do not have to worry about self-stealing or running away from the wallet service provider, because as long as you keep your private key safe when creating the wallet, your assets are still on the chain and can be displayed in a different wallet as well.

Note: If a decentralized wallet is lost or stolen, it cannot be recovered without a backup of your private key or seed phrase, so be sure to back up your private key securely and correctly.