Online Cryptocurrency Wallets: Full Guide

/Online Cryptocurrency Wallets: Full Guide

Online Cryptocurrency Wallets: Full Guide 2018-05-15T13:02:03+00:00

Best Online Wallets 2018

Quick inner navigation:

  1. What is an Online Wallet?
  2. Are Online Wallets Safe?
  3. Online Wallets Comparison
  4. Alternatives for online wallets:

For you to own Bitcoin or any other altcoins, you must have a wallet where you can store, receive, or send your virtual currencies. There are various types of cryptocurrency wallets, with online wallets being the most popular type among users.

Cryptocurrency wallets can be likened to our ordinary wallets where we carry liquid cash and our credit cards. Just like we can lose our wallets, we can also lose our cryptocurrency wallets; when third parties get hold of our public and private keys, they can steal and spend our cryptocurrencies to the very last amounts.

What is an Online Wallet?

Online wallets are basically wallets that run in your browser just like any other website, which is the reason they are also termed as web wallets. These wallets are accessible from any computing device regardless of location, as long as there is internet connectivity.

Currently, there are many online wallets trying to win the hearts of crypto-users. However, as a user, the most crucial question when it comes to the subject of online wallets should be;“ which online wallets can I trust to secure and transact my cryptocurrencies?” Unlike other types of wallets, web wallets have their public and private keys held by third parties which present a high risk of users losing their crypto investments. By the fact that online wallet providers are responsible for securing users’ public and private keys, their integrity should be far above reproach.

Choosing the best Online Wallet might be a challenge because the decision comes with the risk of losing all your money. For this reason, you should keep in mind the following traits while choosing an online wallet:

  • Take a look at reviews about the online wallet. Too many negative reviews on a given wallet is a key indicator of a possible failure of the promised services.
  • The company should offer stringent security measures. There are some websites that provide better security measures than others. You need to keep your eyes open and choose the best one.
  • The online wallet providers should be able to solve a majority of problems reported by their incumbent users. Check for the feedback time from the help center for customers who had different problems.

Are Online Wallets Safe?

 The subject of the safety of online wallets can be a heavy one to debate, especially due to the fact that there are contrasting views regarding the same. To break it down, we can perhaps consider the pros and cons of the wallet, and deduct a solid conclusion at the end of it.

Pros of online wallets

  • They can be accessed from any location on earth as long as there is an internet connection: This makes online wallets vulnerable to hacking and phishing by malicious parties unlike any other types of crypto-wallets.
  • Some online wallets enjoy various support services: Some web-based wallets are tagged along with support services such as integration with various exchange platforms; this makes it convenient for users trade their cryptocurrencies at profitable costs.
  • Online wallets are easy to set up and use: This makes them convenient to even amateur cryptocurrency users and investors.
  • Some wallets offer instant transfers: This is a hedge for users as they do not have to wait for prolonged block confirmations associated with some cryptocurrencies.

Cons of online wallets

  • Possible fees: Some online wallet services providers charge exorbitant fees for various transactions they facilitate.
  • Less anonymous: Users enjoy less anonymity with respect to their web wallet services providers.
  • High-security concerns: Online wallets are considered the most insecure type of cryptocurrency wallet mainly due to the fact that private keys are held by the wallet services provider. It requires such a high amount of trust between the users and providers since any malicious activities on the later’s parts might compromise the possession of cryptocurrencies by their owners. In addition to the level of trust that should be established between users and providers, online wallets are susceptible to a plethora of other dangers including phishing attacks, hacking attacks, outdated security protocols, malware, and DDoS attacks.

Online Wallets Comparison

There are many online wallets currently available, making it even more difficult for users to land a perfect choice that will at least guarantee them the security of their virtual currencies. Unfolding is a few web wallets to consider:

Bitcoin Online Wallets

Bitcoin Online Wallets also called Bitcoin Web Wallets, are the most commonly used online wallets all over the globe. The most trusted and experienced Bitcoin wallets online are;

GreenAddress: This is a multi-signature online wallet that takes control of your Bitcoins securely and conveniently. It allows its users to store, receive, and share Bitcoins. It is known as the most hierarchical deterministic online wallet due to its ease of use and friendly application. It is free to install, but you will be subjected to pay the transaction fee. Bitcoin miners will take these fees and confirm your transaction. It is ranked as the most secure online wallet as it uses new addresses whenever you make a transaction. It never stores your keys, not even in an encrypted form.

Xapo: An online Bitcoin wallet that works differently than other online wallets. It gives you an option of transferring your Bitcoins to the Xapo Vault. You will need an internet connection to use your Bitcoins on the Xapo Vault. It is easy to use and recommended, especially for beginners. It also gives its own XapoCredit Card for spending Bitcoins which give it an edge over other online wallets. There are a variety of security options, like two-factor authentication, and private key segmentation. It uses an offline system to receive and store your data which is a better and unique way of protecting your data.

Ethereum Online Wallets

was launched in 2015 and has since grown rapidly. In such a short period of time, it has become second to Bitcoin. The only reliable Ethereum online wallet is;

MyEtherWallet >> This is open source application for creating wallets related to Ethereum. It is flexible and easy to use. It doesn’t work like other online wallets. You only create the wallet on the web, but all your data is stored on your computer. The security policies of MyEtherWallet are different to others. Because it runs offline, you responsible for your keys. In this way, the developer or hackers can’t steal your keys.

Litecoin Online Wallet

LiteVault >>The reliable online wallet for Litecoin is LiteVault; this is a flexible and easy to use the online wallet for Litecoin. It encrypts the user’s wallet before saving it to the company’s server. Your private keys remain in your web browser, but the company cannot see or access them. For security, it uses two-factor authentications. Furthermore, you will need to enter your password to log in to your wallet.

Dash Online Wallet

Cryptonator: There are a few online wallets for storing your dash cryptocurrency, but the most experienced and reliable one is Cryptonator: This is a user-friendly, easy to use the wallet for storing your cryptocurrencies. You give access to your private keys to another third party. That third party controls your funds on your behalf. They are responsible for keeping your funds safe and secure. The platform’s security is ensured with two-factor authentication and one-time password.

Alternatives for online wallets:

Most of the users use online wallets for storing their cryptocurrencies but in case online wallets don’t fulfill your requirements, there are many alternate options that might be suitable for you.

  • The first alternative for online wallets is desktop wallets. Desktop wallets run on the desktop of your computer. They enable users to create public and private addresses for trading and storing their cryptocurrencies. They are not always secure. If your desktop is keeping your keys in unencrypted form, then you can be attacked in several ways. Moreover, if the hacker successfully traces your IP, you will be left with nothing within a few seconds. There are a few secure desktop wallets including Electrum, Exodus, Bitcoin Core, and Copay.
  • Another alternative and the best one for the online wallet is hardware wallet. It is the most secure way of storing and trading your cryptocurrency. There have been minimum cases of theft or loss of Bitcoins or altcoins from a hardware wallet. It is open source, which means it allows the user to operate the system without internet connection. Computer viruses cannot attack it, unlike online wallets. Nevertheless, a hardware wallet won’t prevent you from sending your Bitcoins to an unreliable The reliable hardware wallets that have been yet introduced are Ledger Nano S and Trezor.

Leaving your coins in an online exchange can be beneficial as well as risky for you. If all you want is trading your Bitcoin with another currency, you are on the right platform then. It would take next to no time to do so. Though the opposite side of this picture isn’t too bright, these exchanges are always risky due to which you can lose all your coins easily. The risks include fraud in the name of currency exchange.

In a Nutshell

In conclusion, a user must first be able to trust the services of an online wallet provider before engaging them. A thorough background check of the provider’s reputation should be done before deploying their services. Additionally, since no online wallet is 100% tamper-proof, it is advisable that users store what they can afford to lose only in the case of an attack.

Choosing an online wallet requires a profound understanding of the cryptocurrency market, which is not only volatile but also knee-deep in fraud. An ill-conceived choice of an online wallet can land you in dire trouble. Ensure that your choice is well-informed and backed by extensive research.

All the wallets are trying to remove bugs from their websites, but hackers always find a way through. At the end of the day, it is up to you to keep your eyes open and get up-to-date with new rules and regulation because some companies publish new terms and regulation every day. Be aware of the scam policies. Sometimes the company’s telecommunication platforms or even servers get hacked, and as a result, the hacker tries to attack user’s account by sending some fake URLs or messages.

Thank you for going through our best online wallets guide, we hope you garnered sufficient knowledge to drive you through your choices and use of online wallets. We welcome you to frequently visit our website for such and more crypto-related comprehensive coverages.

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