A wallet that is accessed online and runs on the cloud considered to be a “hot wallet” because it is connected to the Internet. Accessed from a computer, tablet, or mobile device. An online wallet is convenient because it can be accessed from multiple devices using an Internet connection. However, it is the least secure because it stores your private keys online, and is controlled by a third party. This makes it more vulnerable to hacking attacks or theft, and the third party can close or freeze your account, in most cases, at their sole discretion. That said, you will use online wallet services if you are actively using or trading crypto. The thing to remember is to never leave large amounts of bitcoin or altcoins in an online wallet. Use should be limited to buying, sending or receiving, and funds should be moved to a more secure wallet afterward.
A commonly used online wallet is Coinbase, and it is considered to be one of the most secure. As well as being a fiat-cryptocurrency exchange, Coinbase offers one of the most popular web wallets accessible by mobile. Based in San Francisco, Coinbase has 7.4+ million users and is available in 32 countries. What makes Coinbase the most popular choice is that users can easily and instantly buy or convert crypto using fiat currencies such as USD, AUD, EUR, CAD, GBP, CNY and 50+ more. They accept debit cards, wire transfer, or ACH bank transfer for buying BTC, ETH, LTC, and a few other altcoins. Fees and transfer limits vary.
There are many fake-wallet providers online. Scammers see the high demand for wallets and try to defraud people by offering enhanced anonymity, or cheaper transactions compared to legit wallet providers. They often use names similar to legit providers and care should be taken to ensure download of any wallet directly from a reputable provider’s website.