A web or online wallet is one form of digital currency wallets. Others include installed applications, hardware wallets, and even paper wallets. Unlike the later, web wallet are created and operated on the cloud.
Steps to use a web wallet:
Just like emails and email addresses, they are made to be easy and simple to use. The first step to using one is to choose a service provider. There are several bitcoin companies to choose from: BitGo, Green address, Coinbase, Hive, Blockchain, Coinkite, Coinapult
Which wallet you choose depends on what you consider important- mostly security or convenience.
Some wallet services will walk you through the standard way of signing up for online services – ask for a username and set a password. Others will ask you to generate a passphrase first and enter a four digit PIN, before moving on. The later is a strong security feature for protecting your wallet.
Remember to write down your passphrase and PIN and store them securely. This is because your passphrase will not be shown again. Without it you will lose access to your wallet.
Signing up involves a username and password after which, bitcoin web wallet accessible via internet browsers is made for you.
All wallets automatically come with an assigned bitcoin address – a long string of numbers and letters that resembles 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy. Similar to an account number, they function as an identifier for receiving and sending funds.
You can share it to have someone send you bitcoins into your newly opened web wallet. Alternatively, you can send bitcoins to others by using this address.
Physical wallets usually have different pockets for separating your cash, cards, business cards and more. Web wallets aren’t so different as they are designed to hold multiple addresses – all in one.
Whichever address you opt to use, as long as it is within your wallet, will work for sending and receiving. For instance, Localbitcoins.com, recommend you use a different address for different transactions for enhanced privacy and security.
When you want to send units of a cryptocurrency:
- Login to your wallet
- Confirm that you have a balance
- Find a send option with an empty field to enter the recipient’s address.
- Click send,
- A notification will inform you the transaction is complete.
To receive funds:
- Login to your wallet,
- Find an option that reads “Give out the bitcoin address below to receive bitcoins”.
- An address will be generated which you can copy and share to receive funds.
- Alternatively, your wallet can show addresses as graphical images known as QR codes.
- Display this image and anyone can scan it to send you bitcoins.
A simply recommended security measure is to log out once you have completed all your transactions.
Accessing web applications requires precautionary measures such as two-factor authentication. Wallet services have this standard feature. All you need to do is customize your settings to your preferences.
Every time you login, transact, change password, receive/send funds and other wallet functions – an email and mobile SMS notification are sent to you.