What is Online Storage?
Let's find out Online Storage meaning, definition in crypto, what is Online Storage, and all other detailed facts.
Online storage (or online wallet) is a device that is constantly connected to the internet. It is used to store cryptocurrencies and private keys of crypto accounts. Online storage devices are convenient and easily accessible. However, this also means that they are easy to access by attackers, giving them the potential to steal vital and sensitive data.
Therefore, while online storage is really convenient, it is definitely less secure than offline (or cold) storage. With offline storage, data is stored on devices such as hardware wallets that aren't connected to the internet and thus can’t be hacked remotely.
Online storage devices, on the other hand, stay connected to the internet most of the time (not only when a transaction needs to be delivered to the network). This extends the time frame for attackers to get access. Though when a user turns off their internet connection or shuts the device down, online storage gets offline.
Luckily, encryption and other security techniques are used to secure internet storage devices and servers. This includes browser-based wallets (such as MetaMask), mobile-based wallets (such as Enjin and Trust Wallet), and PC/laptop-based wallets such as (Coinomi and Coinspot).