Online wallets, also called digital wallets, are wallets that are third party wallets that are made available for the use of storing and transaction your cryptocurrency. On this page you’ll learn all about the pros and cons!
What is an online wallet?
An online wallet is mainly used by people that are new to blockchain technology, cryptocurrencies and wallets, as it’s one of the easiest ways to trade and store Bitcoins and Altcoins.
Online wallets are mainly used by people that want to easily access their digital currencies. The ease of use of an online cryptocurrency wallet is very high because you don’t have to install anything. Often many different cryptocurrencies can be stored on them and you can manage them using a user-friendly dashboard.
An online wallet is often offered by a third parties on their platform. You register on the provider’s website to get access to an online account where you can store one or multiple cryptocurrencies.
You can log in at all times via your browser or the platform’s mobile app. Some wallets even enable you to buy & sell cryptocurrency directly within your wallet.
Because your cryptocurrencies are stored at an online wallet with a third party, it is important that you choose a reliable wallet provider. The wallet provider should take sufficient measures to ensure the security of the platform so you won’t get hacked. You must also be able to trust that this third party will not run off with your money.
Examples of online wallets
Creating an online wallet is free and quick. There are many different online wallets you can use. Below are three examples of online wallets:
- Coinbase: A large, user-friendly cryptocurrency platform with a secure online wallet. The Coinbase wallet can be connected to various DEXs and supports over 500 different cryptocurrency (No Coinbase account needed).
- MetaMask: A browser extension, as well as available as a mobile application. MetaMask supports different blockchain networks and supports any (custom) token created on these blockchains, such as the Ethereum Network, Binance Smart Chain, Avalanche, and more.
- MyEtherWallet: Supports any ERC-20 token created on the Ethereum Network.