When you purchase cryptocurrencies, you need to store them somewhere. It depends on where you make the purchase, but in general, you need to give a wallet address to the party that sells you the cryptocurrency. Now, in order to create a wallet address, you need to create an account with a party that you trust. You need to find a wallet that suits you the best and that meets your requirements. In order to do so, you need to be aware of the possibilities. One of the options is a web wallet. Today, we’ll explore what a web wallet is, what its advantages are and what the disadvantages are.
What is a web wallet?
A web wallet is a wallet that you can access using the web, usually your browser. It’s usually referred to as an online wallet. Now, there are hot wallets as well, but these can be different from web wallets. Not every hot wallet is a web wallet, but every web wallet is a hot wallet. These web wallets come in several forms, but the main component is a slick interface that makes it possible for you to store your cryptocurrencies in a safe environment. Besides that, you can safely and quickly transact all your currencies to others. Now, let’s see what some of the advantages and disadvantages are.
What Are The Advantages of Web Wallets?
All of the advantages for web wallets are;
- You can do any transaction in a matter of seconds because your wallet is online and you can access it easily
- With some web wallets, you can exchange your currencies for different currencies within the web wallet
- If you are an active trader and you want to move funds between exchanges, a web wallet is an ideal situation for you
- Some web wallets use the TOR network for an extra layer of security and anonymity
- The main point is the user-friendly approach for web wallets. These come in the form of mobile applications and others, so you can access it in various ways in a really user-friendly way.
What Are The Disadvantages of Web Wallets?
- When you own large amounts of money in cryptocurrencies it might not be the best idea to use a web wallet. As a web wallet is online all the time, it can be accessed by external parties all the time as well. Most wallets have good security, but some of them might have some flaws in their security
- Some of the vulnerabilities and threats that web wallets could be a victim too are Malware, phishing scams, DDoS attacks, and outdated security patches and whatnot, that hackers can exploit to their benefit.
- With some wallets, you do not have all the control over your own wallet. This means, that you do not own the private keys yourself, but the wallet company does. This means that you are not the person in charge and the company can walk away with your money if they want to.
Should You Use a Web Wallet?
That’s something that you need to choose yourself. We do not recommend the use of unsafe web wallets, neither do we recommend unsafe hardware wallets. As with any wallet, you should be aware of the company behind the wallet. What is their incentive for holding your money, how are they making money and can I really trust them? Ask yourself these questions first before you make an account with any wallet. And, one of the most important factors, always make sure you have access to your private keys! Not your keys, not your coins!