Cryptocurrencies are getting more and more popular nowadays, because
they completely anonymous, do not require special knowledge for their
use, and available nearly anywhere. Multitudes of banks all over the
world accept cryptocurrencies, and most of Forex brokers use them to
refill their accounts and for traders’ money withdrawal. The very first
and the most popular cryptocurrency is Bitcoin (BTC), and all other
cryptocurrencies are compared to Bitcoin and only after it – to fiat
money. Therefore, when people mention cryptocurrencies, they usually
mean Bitcoin.
Initially working with cryptocurrencies required installation of
specialized software, but today one can access his/her personal wallet
using a specialized wallet client program, or online. Special devices
called Hardware Bitcoin Wallets were developed, but there are not so
many of them, and they are useful only for people who operate with
large amounts of cryptocurrencies. The end user prefers online wallets
as the most convenient ones providing quick and easy access to a
person’s funds from any type of device equipped with Browser.
Bitcoin online wallets can be divided into two main categories: true
wallets and "pseudo" wallets.
"Pseudo" wallets
In spite of the fact, that pseudo wallets provide a user with
address, the funds stored in such wallets do not actually belong to a
user, though they can be used for personal goals. Usually email address
and password are required to get access to a pseudo wallet but
sometimes your mobile number will be used for the same purposes. Some
pseudo wallets require partial or complete identification, that is, to
operate with them you will need to provide your personal data. Such
approach is somehow contradicting with intrinsic philosophy of
cryptocurrency, completely anonymous by default.
The second significant disadvantage of pseudo wallets are minimal
limits usually established by such services. If the amount transferred
to your wallet is less than a minimum indicated by the service, it will
not be credited to your wallet. Cryptonator, as well as wallets
provided by cryptocurrency exchangers, like Exmo,
are examples of pseudo wallets. In some cases, for instance in
btcbank.com.ua, operations with Bitcoin require user’s bank details,
and transactions with Bitcoins lose their anonymity whatsover.
True Online Wallets
True online bitcoin wallets allow you to operate with cryptocurrency
without limitations and free of charge, except for a small commission
for money transfer. The most popular and convenient online wallets are
shown below:
Blockchain is the most popular and easy to use service of Bitcoin
online wallets. The service has a strong multi-language support and
displays your balance in Bitcoins and many other currencies at the rate
of the exchange.
The keys are server-stored, and after the login/password pair entry,
a user will get a full access to his/her wallet. Login is
system-assigned, but the user creates a password himself. With every
change of your network, browser or PC you will need to confirm your
access by email.
The new version, recommended to previous users and used by new users
by default, offers a variety of settings to ensure security, including
text messages to your mobile, 2-step authorization and the second,
additional password.
The service also allows customers to set the amount of transaction
commission by themselves. Mobile apps for Android and iPhone are
available.
Easy to use and safe wallet for cryptocurrencies. To sign up you
provide your email address, but nearly each entry needs to be
confirmed. Your entry confirmation link will be sent to your email
address.
Coinbase provides a high security level for their wallets, though
backup of private keys is not available here. Сoinbase users can buy
and sell Bitcoins and to transfer cryptocurrency to user’s bank
accounts. However, it should be noted, that not all users are allowed
to use all available options. User options depend on his/her country of
residence, though it will not be a problem to send your own coins to
any user.
In order to transfer your coins to your bank card you will need to
connect your Coinbase account with your bank account and make a payment
to company’s account to confirm your bank details. For other purposes
you will not need to provide your personal data, so anonymity of the
coins use is ensured.
Mobile apps for Android and iOs are available.
This online Bitcoin wallet service is rather easy to use but not so
popular. It has only two language options, English and German, which is
not always convenient for users from other countries.
Stroncoin was one of the first online wallet services ever. Nowadays
they don’t do that much to enhance security of the service, and it only
requests to provide email address and password to enable access to your
wallet. As an additional protection measure, a user will need to select
a picture from their gallery, used as one-time password.
No mobile versions are available for this wallet. Backup copy of
private keys can be created only in the form of printout from a PDF
file.
Block.io is one of the new online wallet services. This multicurrency
service offers you wallets for 3 cryptocurrencies once you register
your account. So together with a Bitcoin wallet, a user will get
Litecoin and Dogecoin wallets as well.
No mobile versions of the wallets are available, though the service
is actively developing. The keys storage is provided by the service.
Backup copies are not provided and this service looks more like "pseudo
"wallet service.
This Bitcoin online wallet requires mandatory 2-factor authorization
for all users. Developers insist that this approach ensures enhanced
security and better protection of users’ money, but for many users it
just makes things more complicated. In addition, for each operation two
signatures are required. But the service does not have full access to
users’ wallets, so without participation of a wallet owner not
transactions are possible.
Greenaddress wallet is simple and convenient to use, with
multi-language support (interface in a dozen languages). The service is
one of the newest and robustly developing. After registration with
GreenAddress services, your device initialization with PIN-code is
required and for all subsequent entries, a user may use only the PIN.
Such approach reduces the security of wallets to some extent.
The service is very easy to use. It has a wide range of security
settings and informs about any activities going on in your wallet.
There are established transaction limits, when exceeded they will
require 2-factor authorization and confirmation.
One of the new services, created mainly for Ukrainian users. After
registration, the service is connected to email address and mobile
phone number.
Coinessa users can buy, sell, receive and transfer Bitcoins, but
confirmation of your personal data is required in order to buy and
sell. It is too early to say if the service is secure enough or
convenient to use.
Xapo is probably the most secure online wallet, in return, the
service user will not have much anonymity. According to Xapo, the funds
are stored on servers without connection to Internet, and many banks
would envy the level of security provided. However, such type of
security approach doesn’t match well with any idea of assets turnover,
so most probably this statement is more an advertising trick than a
real thing. More important is the fact that Xapo completely
de-anonymizes its users, who need to provide their personal data and to
confirm their ID with actual ID scans. And a user’s mobile phone number
is required to enable any transaction.
