Advantages and disadvantages of online wallets

Cryptocurrency discussions
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Meconomy153
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Joined: Sun Oct 12, 2014 2:00 pm

Advantages and disadvantages of online wallets

Post by Meconomy153 » Sun May 03, 2015 4:04 pm

An online wallet offers a lot of advantages. The main reason to store your maxcoins in an online wallet is the easiness of it. Your maxcoins are always available and easy to link to for example an app on your smartphone.

Another advantage of an online wallet is that you don’t have to install software on your PC and you don’t need to install the best security on your PC.

The downside is that you are dependent on a third party to access your maxcoins. This third party can be hacked. The third party can also prove not very trustworthy. The third party can actually decide to take your coins and leave.

If you have an online wallet, use a secure password. Most wallets also offer the possibility of the so-called " two-factor authentication". This can be in the form of a text message or email with a password. Some wallets use Google authenticator every few minutes issuing a new code to gain access. In this way, you make it harder for hackers undetected access your maxcoins. Enable always the two-factor authentication.

For the best security you have to save your maxcoins offline. On your PC or even better: on a paper wallet. Better save than sorry.

HolmesL
Posts: 5
Joined: Tue Apr 12, 2016 1:05 am

Re: Advantages and disadvantages of online wallets

Post by HolmesL » Tue Apr 12, 2016 11:53 pm

I find the sector of cryptocurrency quite intriguing and it is something I would like to wade in a bit more. However, I am extremely apprehensive about the saftey issues that come along with making use of cryptocurrency, like you pointed out above. There is always the chance that someone could hack the 3rd party that is handling your wallet or like you said, they can just up and leave with your money and there is pretty much nothing you can do about this. Do you know if there are any measures that have been put in place to ensure that this doesn't happen? How secure is cryptocurrency?

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