There are many stolen cases that occured in virtual currencies exchanges, so a lot of people are looking for information on the safest way to manage and secure their assets. In this article, we will introduce web wallet that is a platform for managing and exchanging your virtual assets in detail so that you can make decisions about what wallets you should use.
1. What is web wallet?
Web wallet is a management method of virtual assets on website. The unique difference of this wallet compared to others is that you must sign up on website once, because your asset is managed on website. Furthermore, as other wallet platforms, web wallets are used and controlled by logins, password, credit card, and more.
Next, we will discuss what pros and cons of this wallet during users try it on in the next session.
2. Pros and cons of web wallet
2.1. Advantage of web wallet
In terms of web wallet, there are 3 advantages that you can consider:
- You can use it anywhere: Web wallet is easy to use simply because you just enter your ID and password to access via the Internet without choosing what type of device. So, this is always recommended for people who start with virtual currency transactions, and it also provides users who can bring it anywhere they want by using Smartphone, or others. Moreover, its security is very safe compared to exchanges as your money will not be attacked by hackers with ease.
- Managing your account more conveniently: To log in a web wallet, you just need to have ID and passwords, so you can easily access your wallet. This is beneficial for users because they can reduce the risks of losing assets that paper wallets are stuck in.
- Convenient for immediate payment: paper wallets’ drawbacks are time-wasting for payment, and when you transfer money on the exchanges on the timing option that will waste time. So using a web wallet is a wise option, because you just apply the QR code for payment on a smartphone, then the web wallet will complete the transaction. In addition, your transaction will smoothly work when you conduct payment in the limited time (about 10 minutes).
2.2. Disadvantages of web wallet
However, it can ignore the inconvenience when users conduct it for a transaction.
- Get risk from hackers: due to using a wallet through the Internet, so you can get attacked easier than paper wallets. But it will be safer than exchange platforms, so to ensure your asset, you should divide your virtual currency into many different wallets.
- Not various currencies: web wallet just accepts 3 types of virtual currencies including Bitcoin, Ethereum or Bitcoin cash, and it doesn’t update the new ones yet.
You can see that this wallet also has different benefits and disadvantages, so you should understand more about it. Also, you should take care of other wallets such as Desktop wallet, or Mobile wallet that we will discuss in the next articles.
3. Some web wallets on the market
3.1. BTC – Blockchain
There is no doubt that this is a famous one in the virtual currency world as it gains trustworthiness from users across the globe. This platform has been published as a public company as the share of mining, and this is considered one of the biggest virtual currencies exchange platforms.
Additionally, if you want to change your phone, you cannot use wallet without entering 12 recovery phrases. And it means that you will lose your asset when your phone is not recovered, that is the reason why you should strictly manage the account well.
On the other hand, the hacking situation will be zero, because its security system is very strong, and safe as well.
BitGo is a virtual currency of Bitcoin, Ethereum, and more that is using various security keys and Multisig to enhance the security. In addition, BitGo is applying the so-called method 2of3 which is a mechanism of logging in by using 3 security keys and taking 2 of them.
From that perspective, we can say that this platform has high trustworthiness among web wallets basically because the secret key has a higher security than one key (Multisig). But there is no perfect, when Multisig’s drawback is that the number of keys increase, and the fee of transactions as well as management will increase either.
If you are looking for an Ethereum wallet, this is born for you. Its main function is a method of virtual currency management based on the new Ethereum created by ICO, and this will not be stuible for payment because it is controlled by computer.
Which means that Ethereum is quite different from Bitcoin as it exists on its own currency only, and developers must use Blockchain of Ethereum to create other currencies.
4. What you need to consider when using web wallet bitcoin
4.1. Phishing problem
Because of many cases of stealing ID and password from hackers who create similar exchange platforms to steal users’ currencies. So you must be careful by storing the first URL that you log in at the first time and just access it from your bookmark.
If you invest in virtual currency exchange, you should consider virus attacks which will steal your ID and password. In this case, you should install the protection for your computer in order to prevent it at the first time.
4.3. Don’t let your asset on web wallet only
As we discussed above, this will be a risk when you put the great amount of money on web wallet because your asset may be frozen at the discretion of the management company in case of inability to login to the website or the service is sudđenly stopped.
Besides, if the security of the management company is insufficient and a server attacked, users’ assets can be stolen.So you just should put the certain money that is not big in web wallet.
This is 3 things that BAP wants to let you know in order to protect your assets, and you also consider decentralizing your currencies to other wallet like cold wallet, software wallet,… to ensure it will be safe.