EWallet: Difference between revisions
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An eWallet is an online account with an external provider where bitcoins can be stored. Examples include accounts with [http://www.bitcoin.org/trade#Currency_exchange Currency Exchanges] and with ecommerce transaction processors such as [https://www.MyBitcoin.com MyBitcoin.com]. | An eWallet is an online account with an external provider where bitcoins can be stored. Examples include accounts with [http://www.bitcoin.org/trade#Currency_exchange Currency Exchanges] and with ecommerce transaction processors such as [https://www.MyBitcoin.com MyBitcoin.com]. | ||
Some bitcoin users store some or all of their bitcoins in an eWallet to avoid having to worry about keeping a local wallet [[Securing_your_wallet secure]]. | Some bitcoin users store some or all of their bitcoins in an eWallet to avoid having to worry about keeping a local wallet [[Securing_your_wallet|secure]]. | ||
==Risks== | ==Risks== | ||
Revision as of 18:40, 8 January 2011
An eWallet is an online account with an external provider where bitcoins can be stored. Examples include accounts with Currency Exchanges and with ecommerce transaction processors such as MyBitcoin.com.
Some bitcoin users store some or all of their bitcoins in an eWallet to avoid having to worry about keeping a local wallet secure.
Risks
When bitcoins are stored online the ewallet provider retains full control of those amounts.
- There is no guarantee that the amount of bitcoins showing for the account holder's balance are truly being held in reserve by the ewallet provider.
- Some providers describe their reserve policy in their terms of service (TOS). For example, MyBitcoin's TOS states:
- 6. OBLIGATIONS OF MYBITCOIN LLC
6.1 MYBITCOIN LLC will ensure that for all Bitcoins in circulation in the MyBitcoin System there is at all times an identical quantity of unencumbered Bitcoins held in MYBITCOIN LLC's master Bitcoin wallet.
- 6. OBLIGATIONS OF MYBITCOIN LLC
- The ewallet provider's security may be vulnerable to theft as well.