Most wallets also keep records of your Bitcoin transaction history and allow you to manage your balance, much like a bank account.
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] X Research source 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] X Research source 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.
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).
Because they’re not online, they’re not convenient if you plan to use Bitcoin for day-to-day purchases. You might consider also having an online wallet where you keep a small amount of Bitcoin for that purpose, in addition to a hardware wallet—kind of like having a savings account and a checking account.
Exodus also holds other cryptocurrencies, so it’s a good choice if you’re not planning on sticking to just Bitcoin. An advantage of using Exodus is that it includes a built-in exchange, allowing you to trade Bitcoin and other cryptocurrencies without leaving your wallet. [8] X Research source
Like Exodus, Blockchain. com supports multiple cryptocurrencies. You can also purchase Bitcoin from within the wallet, as well as trade it for other cryptocurrencies.
Users have found that Mycelium can be a bit confusing for beginners, although, with hardware support and the ability to hold multiple cryptocurrencies, it might be something for you to look at if you become more invested in crypto.
Hardware wallets aren’t free. They typically run you anywhere from $50-200.
For example, if you want the official Bitcoin wallet, go to https://wallet. bitcoin. com/. The mobile app is available for both iOS and Android.
Think of an online Bitcoin wallet as being the same as having a physical wallet with cash. If it’s stolen, you have no way of getting it back, so only store as much as you can afford to lose.
Mobile wallets are great if you’re planning on buying things with Bitcoin in brick-and-mortar shops. Many restaurants and retailers accept payment in Bitcoin, so if this is something you want to take advantage of, set up an app on your phone.
When your Bitcoin appears in your exchange account, navigate to the option to transfer it to a wallet, then enter your wallet’s public address and the amount of Bitcoin you want to place there. The Bitcoin should appear in your wallet almost immediately after you click the button to transfer it. Online wallets are designed to hold as much Bitcoin as you have—none of them have a limit on how much Bitcoin you can keep. That being said, it’s still not a good idea to keep a lot of Bitcoin in an online wallet because being online makes it vulnerable to hackers. [15] X Research source
A good transaction fee depends on the average transaction fee at the time of your purchase (and this fluctuates). Transaction fees are measured in satoshis/byte, where a “satoshi” is approximately 0. 00000001 BTC. You can find the average transaction fee online (many wallets will allow you to choose the average transaction fee by default). [17] X Research source If you set your transaction fee as low as possible, it might take a little longer for your transaction to be verified and confirmed. But for most transactions, this shouldn’t really be a problem. For example, if the average transaction fee was 25 satoshis/byte and you set your transaction fee to 40 satoshis/byte, you’d likely have your transaction verified within an hour or so. Since you have the option of setting your transaction fee for each transaction, you can easily bump it up if you have an urgent transaction that you want to be verified more quickly.
If there’s no mobile app for your online wallet, just pull it up using your phone’s browser. For online purchases, simply copy the vendor’s Bitcoin address and paste it into the appropriate field in your wallet, then enter the amount of Bitcoin you want to send. You’ll pay the transaction fee for every purchase you make. This is why it’s a good idea to have that fee set as low as possible if you’re planning on making a lot of small purchases (such as lunch or a cup of coffee).
Confirm that the address is correct before you hit that send button. If you make a mistake, you won’t be able to get the Bitcoin back.
