Top 5 Web-Based Cryptocurrency Wallets
Web-based cryptocurrency wallets are suitable for those users who earn their living by trading or buy and sell their coins frequently. Web-based wallets, also called hot wallets, are connected to the internet and make coins accessible asap when you decide to perform a transaction. They can be accessed directly from your browser.
On the other hand, web-based wallets are the least recommended ones because if you use a hot wallet, you keep your private keys on a platform. If the platform is hacked, your private keys might be stolen which results in the loss of your funds. Thus, we still recommend using hardware wallets or desktop wallets instead of web-based ones.
Don’t forget that among hot wallets, you can find those used to operate many types of cryptocurrencies and those used for one cryptocurrency only, for example, Bitcoin. Before you choose one or another web wallet, check whether it supports the needed coins.
While there are a lot of hot wallets, there are some rated at the top because of their security level, functionality, and similar. Make sure your wallet is among the best ones. To facilitate your choice, we have chosen the top 5 web cryptocurrency wallets based on different features. We believe it can simplify your choice significantly.
Coinbase
Wallet type: web and mobile
Cost: free
Exchange incorporated: yes
The Coinbase wallet is not your personal wallet but the one of the exchange. However, Coinbase is pretty different from other exchanges: only 1% of total funds stored in the Coinbase wallets are stored in hot wallets. The rest of the funds are kept in cold storage. This additional security measure boosts the credibility of the Coinbase wallet.
If you use the Coinbase wallet, you get a number of benefits. For example, you can attach your bank account or a bank card to the wallet and transfer crypto to fiat and vice versa easily, just with a couple of clicks. The user interface is very easy to use even if you aren’t an expert. The security level is among the highest in the market.
Among the most significant drawbacks, we would note high fees that tend to be charged for everything: buying or selling coins, as well as for converting crypto. For transactions under 200 USD, a 4% fee is applied. For transactions above 200 USD, a 1.4% fee is applied. The fees tend to accumulate and might become an unpleasant surprise.
Another drawback is the limits of how much you can purchase or withdraw. The limits differ depending on the coins you are buying, your purchase history, and many other factors. While the exchange claims it is done for security reasons, it is still pretty troublesome.
Coinbase had several cases of downtime in the past. It means that at times, you might be able to access neither the wallet nor the platform functionality (e.g. trading options).
SoFi
Wallet type: web and mobile
Cost: free
Exchange incorporated: yes
The SoFi wallet is provided by a brokerage platform. It is not a cryptocurrency exchange, thus, you can neither deposit cryptocurrency in your account nor perform withdrawals in cryptocurrency. To deposit or withdraw funds, you can use fiat money only. The wallet allows you only to trade cryptocurrencies or store them. It supports just a couple of coins such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ethereum Classic, and Dash.
To open the wallet, you need to deposit at least 10 USD there. There are fees (1.25%) charged whenever you are buying cryptocurrency.
SoFi wallet is distinguished by wonderful customer support. The platform representatives are available 24/7. They are known for their professional approach and friendly communication.
While the SoFi wallet has its drawbacks such as, for example, a very limited choice of supported coins, it is a convenient option for beginners.
Jaxx
Wallet type: web and mobile
Cost: free
Exchange incorporated: yes
If you are looking for a universal multi-currency, multi-platform wallet, Jaxx is a convenient option for you. It is also one of the safest wallets out there. It supports more than 80 cryptocurrencies and allows swapping them within the wallet.
It works on all devices running on Windows, Linux, Android, or iOS OS.
You can download Jaxx for free but for every transaction, fees are charged. However, the service doesn`t benefit from the fees. The fees are used to make the transaction happen in the network of a specific coin. Say, for every transaction involving Ethereum, the wallet will charge you approx. 0.000441 ETH. This money will be used to process the transaction. Such fees are called network fees.
The fee amount is not constant. It depends on the network load of a specific coin. Users can also adjust the fee by adjusting the speed of every single transaction. The slower the transaction is, the lower is the fee.
Jaxx is known for the simplicity of use. All the features are labeled, each of them has a “useful tip” attached to guide users.
Jaxx is a wallet for those who prefer ease of use and comfort accompanied with a top safety level. Sometimes, bugs are detected in the system but the Jaxx team is known for fixing them asap.
Coinmama
Wallet type: web
Cost: free
Exchange incorporated: yes
Coinmama is an Israeli-based broker and exchange platform founded in 2013. Now, it is available even in the USA, in the majority of states.
The wallet provided by the exchange supports around 200 coins, and you can deposit and withdraw funds in both cryptocurrency and fiat money. Transactions are also available in fiat and crypto. You can deposit and withdraw via your bank account, a bank card, and specialized payment systems such as SEPA.
The Coinmama customer support is available 24/7 and is known for being absolutely professional and attentive to all customers` needs. You cannot call them via phone though. For some users, it might seem like a drawback but considering that there is always somebody available in the live chat, we don`t really think that the absence of a phone line is something major indeed.
Coinmama is registered with FINCEN in the USA. It is one of the guarantees that the wallet can be trusted.
An amazingly easy-to-use interface is one more benefit of the wallet. Even if you have never dealt with cryptocurrency, you will not have a single major issue while registering the wallet or using it.
Binance
Wallet type: web
Cost: free
Exchange incorporated: yes
Binance is one of the major exchanges, thus, it is not surprising that it offers a wallet, too. The Binance wallet supports all the coins available to trade on the platform. The Binance wallet supports only crypto-to-crypto transactions, fiat money is not supported.
Another benefit of the platform is very low fees. Every transaction is around 0.1% of the transaction sum which is very low indeed.
Deposits to the Binance wallet are free but withdrawals cost money. The withdrawal fees are different for each cryptocurrency and shall be checked separately. For example, for a withdrawal in Litecoins, you will be charged a fee of 0.01 LTC.
You can use the wallet without KYC if your transaction volume doesn`t exceed 2 BTC per day. If it does, account registration and verification is needed.
