Web crypto wallets offer convenience but come with several risks that users should be aware of. One of the biggest risks is security vulnerabilities. Since these wallets are connected to the internet, they are more susceptible to hacking, phishing attacks, and malware infections. Hackers often use phishing scams to trick users into revealing their private keys or seed phrases, leading to asset theft.

Another major risk is custodial control in some web wallets. If a wallet is custodial, meaning the provider holds the private keys, users rely on the platform’s security. If the provider is hacked or becomes insolvent, users may lose access to their funds.

Smart contract vulnerabilities are also a concern, especially for web wallets integrated with decentralized applications (DApps). Bugs in smart contracts can be exploited, leading to financial losses.

Additionally, browser-based attacks pose a threat. Malicious extensions, keyloggers, or man-in-the-middle attacks can intercept login credentials and steal funds.

Lastly, regulatory risks exist, as governments may impose restrictions or require KYC (Know Your Customer) compliance, potentially affecting wallet accessibility.

To mitigate these risks, users should enable two-factor authentication (2FA), store backup recovery phrases securely, and use hardware wallets for large holdings.

Web crypto wallets, while convenient, come with several risks. One major concern is security vulnerabilities, as these wallets are often targeted by hackers due to their online accessibility. Phishing attacks, malware, and fake websites can compromise private keys, leading to the theft of funds. Additionally, web wallets rely on third-party servers, making them susceptible to server outages, data breaches, or even shutdowns, which can result in loss of access to assets. Users also face the risk of poor user practices, such as weak passwords or lack of two-factor authentication, which can expose their wallets to unauthorized access. Furthermore, web wallets are custodial in many cases, meaning users do not have full control over their private keys, increasing dependency on the service provider. These risks highlight the importance of caution and robust security measures when using web crypto wallets.