30 May 2018, 14:25
Acquiring cryptocurrency prompts the question of how you will handle your coins. There are several types of wallets, and each one has its pros and cons. In this overview, we’re covering the features of a hosted wallet as one of the ways to store your coins.
What is a hosted wallet?
A hosted crypto wallet is a digital wallet in which your private keys are stored. In exchange, the wallet takes care of the backup and security of your funds.
In comparison to other crypto wallets, a hosted wallet is more similar to regular banking apps — you can always regain access to your assets, even if you have forgotten your password, mnemonic phrase or lost your phone. Other types of wallets do not provide this possibility. In the event that you lose access to your credentials or a device on which the wallet is installed, you will lose your funds.
Freewallet is an example of a hosted wallet. It provides its users with the possibility to restore lost credentials, performs backups and guarantees security of the user’s funds.
Moreover, Freewallet doesn’t oblige you to download the whole blockchain before making your first transaction. It is ready to work right after the registration in the web version or the app download.
Why do I have “zero” balance in my hosted wallet?
Addresses displayed in Freewallet apps are used for receiving transactions only. To keep personal keys and user assets safe, Freewallet transfers all coins to cold storage.
Once you receive a transaction, the funds are moved out of your pay-in address to cold storage. Whenever customers need to make a transaction, assets are transferred from the cold storage to the payout address. So, anytime customers check their pay-in address balance in the blockchain explorer, they can see the exact amount enter and leave. The actual balance will be displayed in Freewallet.
As a result, your wallet is completely private: nobody else can see how much money you store at your address.
Ok. How do I get my Freewallet?
You can create your wallet on the web, or download an app on an iOS or Android device. Freewallet’s Multiwallet supports 25 coins including Bitcoin, Ethereum, Bitcoin Cash, Monero, Litecoin, Dash and other major cryptocurrencies.