Why online wallets are better

Most newcomers to the crypto market choose online wallets. And here’s why:

• No need to store hundreds of gigabytes of history on your device.
• The interface is user-friendly and understandable, there is no need to learn it additionally.
• The level of security is usually higher than in mobile wallets.
• It is possible to use both from a PC and a cell phone.

How Online Wallet Works

• Online wallets do not store cryptocurrency. They only store public and private keys to your money.
• A public key is an address where other users send you money. In principle, it is similar to an email.
• A private key is a set of letters and numbers that allows you to access the money. If the public key is an email, the private key is the password to it.

Some people don’t like that an online wallet has their private key. But they need it so they can verify your identity. It’s like complaining that Google knows your Gmail password – how else can you prevent other users from reading your correspondence?

How to choose an online wallet

• Getting an online wallet is a matter of minutes. But first you need to find a reliable service. One that won’t lose users’ money or run away with it to Thailand.
• Make sure before you create a wallet that your coins will be stored in a “cold” wallet – a vault that is not connected to the Internet. It’s harder to hack into.
• Study the company, its team, and its reviews. In the end, make sure that you are willing to trust a third party with your money. And only then create a wallet.

How to exchange cryptocurrency for fiat money
Fiat money is regular, hard money issued by a government. For example, the dollar or the ruble. And since many services don’t yet accept cryptocurrency, we still need fiat money.

There are three main ways to transfer money from crypto to fiat:

• Cryptocurrency exchangers (Coinbase, GDAX). You should choose an exchanger as carefully as an online wallet. Check security, read reviews and reviews of other people who know about it. One unpleasant story that happened to a large exchange Mt.Gox has already been discussed on hubra.
• Cryptocurrency trading platforms. On these exchanges, sellers can find buyers – and vice versa. After the initial “meeting” at the site, users decide how they will transfer funds to each other. Usually they meet in person or use bank transfers.
• Cryptocurrency cards (Bonpay, Spectrocoin). Special bank cards for paying directly or withdrawing money from ATMs.

The cards are not available for Europe and CIS countries now, because the only card provider in Europe stopped its existence. But many companies promise to issue new ones in the next few months.