The Advantages and Disadvantages of an Online Wallet

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Online wallets are convenient, but they aren’t without their drawbacks. There are several advantages to using an online wallet; however, there are some things to consider before making the decision to do so. Keep reading to learn more about what an online wallet can offer you, and what might be best left to other types of currency storage options.

Secure


An online wallet gives you a secure way to store funds, especially if your computer is vulnerable to viruses. If you have valuable assets that need safekeeping, look into investing in a high-quality online wallet. But remember: It’s still possible for hackers to break through security firewalls—even at legitimate financial institutions—so only keep assets in these wallets that you are willing to lose. Don’t treat these wallets as banks!

Convenient


An online wallet eliminates the need to carry your cash, credit cards, ID, or any other item in your physical wallet. Many people also feel more comfortable shopping online when they’re not carrying their wallets with them.

If you’re worried about being mugged or have a fear of pickpockets, carrying a lot of cash and valuables can be extremely stressful. Your cash is safer in an online wallet as well because you don’t have to carry it around with you.

Accessible


You can access your wallet from any computer at any time, meaning you don’t have to carry a bulky wallet around with you every day. You can also store cash in your account for easy on-the-spot payments when you don’t have your credit card on hand.

Easy to Use


Online wallets are extremely easy to use and do not require users to download anything. If you’re making a quick transaction or want to give someone a small amount of bitcoin, it’s easy as pie. It doesn’t get much simpler than that. Just make sure you have your private key stored safely! This is a very important piece of information, as anyone who has your private key can access your account.

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Vulnerable to Hackers


Because all you have to do to gain access to someone’s online wallet is know their username and password, online wallets are more vulnerable to hackers than offline ones. If a hacker is able to find out your username and password, he can steal all your money. While no system is absolutely hackproof, offline wallets are much safer.

For consumers only


Before jumping on board with your favorite online wallet, you should know that many have security flaws.

For example, when it comes to cryptocurrency wallets, not all are created equal. While some focus on ease of use, others prioritize security over simplicity. The best way to learn about potential downsides is by doing research—but there’s no need to worry. We’ve done that for you. Here are a few potential issues worth looking out for

For merchants only


When you have a brick-and-mortar business, it’s pretty easy to keep track of inventory. You can tell how much is in stock by checking on your shelves, counting boxes in your storage area, or even counting what’s been sold over a period of time. But if you’re running an online business, you won’t have access to many (if any) physical items.