A digital wallet is pretty much a compulsory part of owning cryptocurrency in the virtual finance world. It is from these wallets that users are able to make to make transactions, be it buying or selling their funds. When you obtain a wallet, it will come with a virtual address, and this is how you are able to make the transactions.
In addition to the wallet address, you will also be required to generate a private and public key when you are setting up your security systems.
There are many different types of wallet currently available, but one of the most popular is the Online wallet. As the name suggest, this is an electronic wallet that is hosted on the internet, created by various companies. Once you have chosen the company that you want to use, you must register on their official website.
In order to use this type of wallet, you must have constant access to an internet connection or else you won’t be able to monitor and use your funds.
Despite that these types of wallet are very popular and easy to use, they are not the most secure of all digital wallet types. Your private key will be stored on a company controlled server, so you are not fully in control of it, the third party is. This is something to be aware of if you are considering an online wallet as your wallet of choice.
One of the disadvantages of this type of wallet is that the user does not have the absolute control over the page where they have their investment, what happens to it is not in your hands. For example, if the page crashes or the company is attacked, your finances could get harmed.
There are, however, many benefits that come with using this wallet. Not only is it easy to use, but because it is online, it can be accessed from anywhere, making it very convenient. As long as there is a connection to the internet, transactions can be made quickly.
Another benefit is online wallets often come with an exchange or trade option, where you can buy or sell cryptocurrencies directly on the site, and can connect you to others who may wish to trade with you. This can be hugely beneficial and will save you a lot of time and hassle.
This type of wallet is offered by almost all exchange houses, as when you purchase cryptocurrencies from these exchanges, they are deposited automatically into an online wallet. You are then able to decide whether to transfer them to another wallet or leave it there.
To start using an Online Wallet to manage your Bitcoins or alternative cryptocurrency is pretty easy. Simply visit the official company website, fill out the registration form and open an account.
It is also recommended that you look into all of the features and benefits that each company offers and choose the one that meets your needs.
Some of the safest and most popular online wallets today include:
- Green Address
If you chose to own an online wallet, it is not recommended that you keep a large amount of coins in it for security reasons.