What Is A Web Wallet
A web wallet is an online wallet that stores your bitcoin on the cloud or under the custody of a trusted third party.
They are usually offered by third-party custodians, such as bitcoin exchangesUnderstanding Bitcoin Exchanges Bitcoin has proven itself to be one of the fastest horses in the financial arena. To keep up with the rising demand, countless Bitcoin exchanges have popped... or online services. Bitcoin web wallets offer the convenience of being able to access your coins from any internet-connected device. However, because your keys are stored online, they are at greater risk of being hacked than a wallet that stores them offline.
Exchange Wallets
Bitcoin exchangesUnderstanding Bitcoin Exchanges Bitcoin has proven itself to be one of the fastest horses in the financial arena. To keep up with the rising demand, countless Bitcoin exchanges have popped... are online platforms where you can buy, sell, or exchange bitcoin for other digital or fiat currencies. These web wallets are third-party custodians that have control over your private keysWhat Are Bitcoin Keys? Bitcoin keys are randomly generated strings of numbers and letters that are used to send bitcoin and/or verify ownership of a bitcoin address with a digital... and will (hopefully) allow you to access your bitcoin using their online platform.
Some exchanges offer a “vault” option, which means that the private keys are stored offline in an air gapped wallet that is controlled by the exchange. These vaults are designed with the intention of making it more difficult to access your bitcoin by implementing additional security features like time locks, 2FAWhat Is 2 Factor Authentication? 2 Factor Authentication or 2FA for short is a method of adding a second layer of security to an account such as a social media..., or the use of whitelist addresses.
Since custodial wallets put someone else in control of your private keys, it means that if the exchange is hacked or goes bankrupt, you will lose your bitcoin.