Are you thinking about investing in Bitcoin but aren’t sure how to start? An easy and completely free way to begin is by opening a Bitcoin wallet. It functions exactly like your physical wallet, but instead of currency, it stores cryptographic data that allows you to send and receive coins.
There are many types of Bitcoin wallets to choose from, but a free web-based Bitcoin wallet is an excellent starting point for a complete crypto novice.
The Bitcoin wallet online registration rarely takes more than a couple of minutes. It’s super convenient and completely anonymous. Here’s everything you need to know about the process.
Why Choose an Online Bitcoin Wallet?
Cryptocurrency wallets are divided into two categories – cold and hot wallets. Cold wallets are used for storing funds in compatible desktop software or designated hardware.
Whereas hot wallets require a constant internet connection and can be accessed from any device. A bitcoin wallet online is the go-to choice for people who manage micropayments regularly and need them to be processed fast.
Most web-based Bitcoin wallets are free and don’t require you to use any physical media. If staying anonymous is essential, you should know that wallets tend to avoid any verification during the registration.
While there are some disadvantages to an online Bitcoin wallet, such as susceptibility to malware, they’re by far the most convenient option.
How to Create a Bitcoin Wallet Online
The first step is to choose a Bitcoin wallet. You have to consider your buying needs and how you will use your coins.
The undoubted appeal of an online Bitcoin wallet is that setting it up is a quick process. While the steps might differ from one wallet to another, this is what you can expect:
- Using any browser, go to the web Bitcoin wallet.
- Select “Create Account.”
- The third-party digital wallet will generate a unique private key.
- Make sure that you have written down your private key somewhere.
- Confirm the private key and log in to your account.
You don’t have to leave your email address nor create a password. Your private key is all you need to access your Bitcoin wallet online.
Hence, it’s critical to store the key somewhere safe. Should it get lost, you won’t be able to log in to your wallet ever again, and all the coins you’ve had will be lost.
How to Create a Bitcoin Wallet Backup
The best online Bitcoin wallets allow users to create backups to increase the odds of them never losing their funds.
This specific type of backup is called the seed phrase, and it consists of either 12 or 24 randomly generated words. When creating your online wallet, you’ll be prompted to set up this backup and write down these words.
How to Ensure Your Online Bitcoin Wallet Is Always Safe
The Bitcoin wallet backup is your step towards protecting your digital assets. However, one of the most common ways Bitcoin investors ensure their funds are always safe is by maintaining multiple wallets.
It might not seem like the most practical option, but it’s indeed a clever strategy. When you diversify your crypto investments across wallets, it mitigates any potential loss should there be a security breach in the future.
If you’re not too keen on this option, there are a few other ways to ensure your Bitcoin wallet online security.
Use Only a Secure Internet Connection
When trading on crypto exchanges or using your Bitcoin wallet for purchases, it’s essential to use only a secure internet connection.
As such, you should avoid any public Wi-Fi networks and even take precautions when you’re at home. A reliable VPN will provide additional security as it changes your IP address and keeps your online activity private.
On that note, be extra careful when it comes to suspicious ads, emails, and the phishing scams that are rampant in the crypto-universe.
Secure Your Devices
Whether you’re using your computer or mobile device to access your Bitcoin wallet online, make sure it’s not full of vulnerabilities. A strong firewall and anti-virus software are essential to maintain optimal security.
Investing Safely With an Online Bitcoin Wallet
Before you invest in an expensive hardware wallet, it’s best to test the waters of cryptocurrency with a web-based digital wallet.
Some crypto experts advise investors to use both types of wallets to achieve maximum security and diversify their investments. Either way, make sure you use only wallets that provide anonymity, wallet backup, and are easy to use.
Setting up an online Bitcoin wallet is a straightforward process and an excellent way to learn more about how Bitcoin works.