Online Bitcoin Wallets: How They Work and Which ones to Use

 As its name suggests, it is a wallet that can be accessed and managed completely online Bitcoin wallets.  The user doesn't have to worry about downloading any programs on his personal computer or smartphone. The online Bitcoin wallets is the most versatile as it can be accessed from multiple devices.

The online Bitcoin wallets are Hot Wallets, just like the desktop wallets presented in the last article. They are recommended for storing money that will be transacted with a certain frequency. It is not recommended that a large amount of money be kept in it. This type of wallet offers more levels of abstraction that a hacker can use to try to steal your funds. Unlike desktop, now you also have to worry about your browser and managing that online service.

1. How it online Bitcoin wallets

These online Bitcoin wallets are completely hosted on the servers of the responsible company. This leads to less security, as in a way your private and public key are in the hands of others, even if they do not have access to this information, which is encrypted before reaching the servers.

Users need to create an account to be able to access the online service. Usually the registration is done by email and phone number, if you want more security. This registry ends up taking away some privacy because these records are kept and, of course, could be evaluated at the request of governments and the like.

There is not much to specify in its technical operation, because in a way the online wallet does everything that the desktop does, but all this work is being processed somewhere else on the planet and is being transmitted on a website for you that has the credentials needed to view those actions.

2. precautions

When I referred to abstractions in the first topic, I meant that in the online wallet there are more points to be attacked. There are more places and more people managing your private key. The less your private key is exposed to any system, the more secure it will be, and in this regard, Paper Wallet would be the most secure.

The main concern in the online wallet is phishing, a form of deception that consists of creating a fake website with the same appearance as the original and thereby stealing the information entered there to be used on the original website, thus stealing your account.

To avoid this, we recommend that you add the official website to your browser's favorites and always access it from there. Never Google the name of the wallet, as the similarities can be huge, some become difficult to notice even in the link itself, as happened with Binance some time ago, the fake website had the same address, except for an almost accentuated that invisible in one of the letters.

I also recommend the use of Adware removers, viruses that install themselves in the browser and keep opening advertising windows, based on what you access, thus increasing the chances of you being deceived with a fake website. The recommendations given in the Desktops wallets also fit here.

Now I give you the most important tip of all. It may sound paranoid, but it is not: under no circumstances, log into your online wallet on an unknown computer. There is a type of tool known as Keylogger and it is responsible for saving everything that is typed on that computer.

Keyloggers can be used “legally”, not being accused of being a virus. The user himself may have installed it on the machine, to take a look at later. These programs usually start along with the operating system and are invisible to the eye. Its icon is not shown anywhere, being necessary to press some specific keys for the program to appear.

Someone could install this on their machine and at a later date come back and collect the information manually. Try to use it only on your personal computers and if you want more security, use the virtual keyboard to log in.

I don't want to torment the reader and make them paranoid, but I want them to know the possible dangers. These things are pretty hard to come by, so don't get so paranoid. Want to know something really dangerous? 

The hosting of one of these online wallets could be hacked and they could upload a system exactly the same on the official website, where they would steal your information that you typed there, in the original link itself, but relax this never happened and probably won't. The services are pretty safe, at least against that sort of thing.

3. Examples of wallets Coinbase

Coinbase is a San Francisco-based company created on July 2, 2011. It is one of the most renowned organizations working with Bitcoins. It works with fiat currency from more than 32 countries and offers different services, such as Exchange and online wallet, which I am presenting here.

The coinbase online wallet supports Bitcoin,

 Ethereum, Litecoin and Bitcoin Cash. It has a multi-signature and offers exchange services with physical money, as if it were an Exchange, but for that the user will need to have a cryptocurrency account and a fiat currency account. Unfortunately, Brazil is not yet in the countries that Coinbase works with and you will not be able to use the Real. Coinbase also offers a Visa card topped up with Bitcoins, but it can only be used in certain US states. The differentiated services are not yet available here, but they are expanding and may eventually cover Brazil.

Blockchain.info was initially a service used to exploit blocks on the Bitcoin network, but over time they created their online wallet which is one of the best known and most used by the community. The wallet can be accessed both online and through the mobile app available for Android and iOS.

The wallet doesn't have many advanced features or differences, but it does have the basics like wallet import and 2FA login. It is quite secure and promises not to store users' private keys. Ethereum, Bitcoin and Bitcoin cash are supported and there is also a version of the wallet for Android and iOS.

4 . GreenAddress

GreenAdress ends up behaving in a different way, which makes its classification a little difficult, as it could be considered both desktop and online. The wallet works as an extension of Google Chrome, through the browser. It doesn't have as elegant a design as blockchain.info but has similar functionality, except that it only accepts Bitcoins.

5 . My ether Wallet

The wallet works completely online and allows you several ways to log in or save your private key

There are several other services available, but these are the most recommended. If you want other solutions, there is also BTC.com and the XAPO wallet that has a credit card. Be careful with services not mentioned here and research well before using