To store cryptocurrencies we use a cryptocurrency wallet. Cryptocurrency wallet what is it? Which is the best web wallet for cryptocurrency storing? In simple terms, a cryptocurrency wallet is a secure virtual or digital wallet.
This means it is a software program that stores public and private keys. It can be used to store, send, and receive cryptocurrencies.
Cryptocurrency wallets come in a variety of forms on computers, smartphones, and paper, and differ significantly in terms of security and functionality. For instance, some crypto wallets contain only one type of cryptocurrency, while other cryptocurrency wallets allow users to manage multiple crypto assets.
Some multi-currency wallets facilitate a user to convert one cryptocurrency to another without the need to move the funds from the wallet to the exchange.
How Does a Cryptocurrency Wallet Work?
Wallet addresses are similar to bank account numbers and are publicly used to store and transfer funds. They can be created with a cryptocurrency wallet with a proprietary public key.
The address of a cryptocurrency wallet is a combination of numbers and letters, such as 15PSPzV43eESRHyYZFbpw3spZKyFx5eAoh.
In most cryptocurrencies, wallet addresses are transparent, which means you can easily determine how much money is in a particular wallet. But, the identity of the address owner is not revealed in the real world.
Public and Private Keys
It is important to know that there are “keys” in your wallet. These secret codes allow a user to access the wallet, view different amount, and use the user’s tokens by almost invariably integrating two elements:
Public key: a long string of letters and numbers that is the address of the wallet. This address facilitates people to send the crypto money to your wallet. It is just like a bank account number because it is used to send “money” to another account.
Private key: only the wallet owner knows this. This key is used to sign transactions, and to prove to all online peers that you have a certain amount of cryptocurrency in the wallet.
An encrypted wallet act as a communication interface with the blockchain of the different cryptocurrencies and allows you to check your balance and send and receive cryptos.
Cryptocurrency wallets can be software that you install on a computer (desktop wallet) or a smartphone and are also available as a hardware wallet.
Can you trust a small technology company to hold your hard-earned money on your behalf? This is the question you should ask yourself when using an online (web) wallet.
In short, an online wallet is a software wallet or a combination of software and hardware wallet that can be accessed and managed through a web platform. Specifically, there are web wallet platforms where you can create an account and create your cryptocurrency wallet.
Many cryptocurrency exchanges also offer web-based crypto wallets besides the purchase of cryptocurrencies.
The obvious advantage of an online wallet is that you can access your funds at any time by logging in to the wallet provider’s web platform. Several web-based platforms also provide a mobile or desktop application that makes it easy to connect your device to the server.
Because this service is provided in the cloud, hackers specifically target network wallets. Therefore, you need to be careful before choosing a particular web wallet – These wallets are known for hacking and require an additional security level such as two-factor authentication.
5 best web wallets for cryptocurrencies:
Coinbase has already gained a reputation as one of the most secure cryptocurrency trading platforms and is the best web wallet for cryptocurrency. In addition, Coinbase offered an insurance facility for all cryptocurrencies that investors store on the Coinbase Site.
You can also link your bank account to the site and start selling or buying cryptos using your wallet.
Coinbase Wallet Features
- Provides a lucrative interface where beginners can easily understand and support popular digital financial instruments and cryptocurrencies.
- You can store multiple signatures and two-factor authentication which ensure the security of your wallet.
- The exchange has a large number of investors and is supported by many reputable exchanges.
- It can be called the most secure cryptocurrency wallet in the world today.
- No doubt that Coinbase has a great future. As one of the best cryptocurrency wallets, it is hosted where the keys are stored elsewhere.
Exodus can easily be called one of the best web wallets for cryptocurrency as it serves its users with desktop, mobile and hardware wallets. The wallet is known for its easy use. It also gives you the power to switch to multiple platforms. If you are a novice, you can start with this best web-based wallet.
- The interface is easy to use and anyone can make transactions event without knowing too much about Exodus.
- If you are concerned about your privacy, this wallet is the perfect option for you. Exodus does not link your data to the exchange and does not have an account.
- Even if you can buy Bitcoin or Ether with fiat money, you do not need to link your bank account to your wallet.
- If you use a desktop wallet, all Windows, Mac, and Linux are supported, and iOS and Android apps can be used to use the wallet on a mobile device.
- Does not support two-factor authentication or multiple signatures. So in terms of security Exodus is not a great wallet.
Copay wallet was created by BitPay Company and is also the best web wallet for cryptocurrency. BitPay has made Copay the world’s most accepted bitcoin wallet by enabling many companies to accept bitcoins as payment.
A light node wallet uses a simple process to complete transactions even the two-factor authentication is not available.
Features of Copay
- Supports bitcoin and bitcoin cash. All keys are stored locally outside of the cloud to ensure device-based security.
- Addresses are based on hierarchical properties and payment protocols BIP70-BIP73 easily identify payment requests and confirm payments.
- Although Copay support bitcoin, these best BTC wallets also offer only a few wallets with multiple signatures.
- You can pay with your wallet on some popular websites and e-commerce companies like Amazon.
- With a shared wallet group payments can also be made, and e-mail and push notifications to keep you updated about your activities.
- Copay is a developer-backed open-source web-based wallet to keep your digital assets protected.
Jaxx Liberty Wallet
Jaxx is known as an all-in-one multi-currency multi-platform cryptocurrency wallet that has been operating since 2014. More than 80 cryptocurrencies can be exchanged by using the Jaxx Liberty Wallet.
Apart from that, it provides all the essential features like Activity History, Money Balance, and insights into a specific crypto coin. While Jaxx is not an open-source application, its source code is available online.
Jaxx Liberty Wallet Feature
- The application is available in android, iOS, Windows, and Linux versions, and its chrome extension is also available.
- You can start your journey with the Jaxx Liberty as a new student because it’s 100% free and many people around the world believe it.
- Provide excellent platform support and customer service through a variety of media such as social platforms or email.
- Block Explorer allows you to check your balance and complete payment transactions using multiple blockchains.
- The news module increases the value of the application as it constantly shares valuable updates and important information about the blockchain and digital currency.
- It allows users to monitor the market by analyzing price difficulties, market caps, and following the latest trends.
Electrum is among the best cryptocurrencies wallet because of its experience and reliability. The wallet is designed to use cryptocurrency as a standard payment method since it offers easy and understandable business completion solutions.
It is more secure than online storage and uses a server instantly to download blockchain. It is the best web wallet for cryptocurrency for new crypto traders.
Features of Electrum Wallet
- A simple confirmation method is used to confirm transactions, so you can use it as a regular wallet.
- Thanks to the automatic interface, it is very easy to use even for new users, and encryption takes place in two steps so that the funds are well-protected.
- Electrum is open source software and anyone can participate in further development.
- Privacy is well protected and data is not stored online. The user manages all their keys and bitcoins, but it only supports bitcoin.
- A security breach was recently reported, although the wallet has already recovered from it. This is a web-based wallet and hackers can get into individual user’s digital assets.
Cryptocurrency wallets provide a digital solution for secure storage and management of cryptocurrency assets. These wallets facilitate users to access buy and trade cryptocurrencies. While choosing the best web wallet for the cryptocurrency you should consider things like security, support, functionality, etc of a wallet.
Some cryptocurrency wallets can only support one cryptocurrency while many others allow users to hold different cryptocurrencies, such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin, etc.
Crypto wallet stores public and private keys. Public keys are components of digital codes attached to a distributed blockchain just like a bank account number.
Private keys are also digital codes, but are unique to an individual’s wallet, just like an ATM PIN code. Private keys correspond to the ownership of public keys. Owners execute all transactions on their private keys with the cryptocurrency they own.