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Author: Admin | 2025-04-28
Download Article Download Article If you're thinking about buying Bitcoin or some other cryptocurrency, you'll need a wallet to store it in. Wallets also allow you to send and receive Bitcoin from others. Online wallets (also known as "web wallets") are typically the easiest ones to start with. But how do you set one up and use it? Here, we've compiled answers to some of your most common questions about how to create and use an online Bitcoin wallet. Before you can buy your first Bitcoin, you'll need a wallet to keep it in. You can think of a wallet as being similar to a checking account—you can make deposits and withdrawals, or you can transfer your Bitcoin from one wallet (account) to another.[1]Most wallets also keep records of your Bitcoin transaction history and allow you to manage your balance, much like a bank account.Advertisement An online wallet is just like an online bank account and the interface is relatively easy to navigate. Because many online wallets also have mobile apps, you can access your Bitcoin anywhere.[2]One major drawback of online wallets is that instead of storing your private keys on your own device, online wallet providers generate and store your keys online.[3] If you've ever heard the phrase "not your keys, not your coins," it's referring to this—if you don't have custody of your keys as you would with a downloadable or hardware wallet, your funds can be withheld by the wallet provider at any time.[4] You're responsible for keeping your account safe.Another downside of online wallets lies in their very nature. Since they're always online, they're always vulnerable to hackers. If an online wallet provider is hacked, you could lose your coins forever. Review security features very carefully when choosing an online wallet, and refrain from storing large quantities of Bitcoin on the web. Because your Bitcoin keys are kept on your computer, not online, software wallets are much safer than online wallets. However, they're only as safe as your computer, so make sure you have strong security and firewalls in place before you download a software wallet.[5]Many companies that offer software wallets have connected online or mobile wallets. It's a simple option if you're concerned about the vulnerability of keeping all your Bitcoin in an online wallet (even if you don't have that much of it). If you're holding large amounts of Bitcoin, or if you plan on holding it for a long time, a hardware wallet is your safest bet. Because they're not connected to the internet, you don't have to worry about hackers stealing your stash.[6]Because they're not online, they're not convenient if you plan to use Bitcoin for day-to-day purchases. You might consider also
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