The Various Types of Bitcoin Wallets and Exchanges

Setting Up an Account with Bitcoin Wallets

It was in the year 2008 when Satoshi Nakamoto created the Bitcoins, a peer to peer electronic cash system which is now widely used worldwide. In January 2009, the first block chain was mined and the Bitcoin client was first released to the public, until eventually the Bitcoin network was established.

If you have been trading with Bitcoins, then you are certainly aware that Bitcoin wallets are important before you can buy or sell Bitcoins. The wallet is similar to that of a bank account and that it allows you to receive Bitcoins, store them there for quite some time and then send them to other Bitcoin users.

Remember that there are two main types of Bitcoin wallet and one is the software wallet which you can install on your computer or mobile phone. With this wallet, you will be in complete control of the security of your Bitcoins although sometimes, the software wallet can be a bit tricky to install and maintain. The second type of wallet is the web wallet, also known as the hosted wallet since it is being hosted by a third party.  The web wallet is much easier to use although for this type of wallet, you should be able to put your full trust on the provider in order to maintain a high level of security in order to keep your Bitcoins protected.

Coinbase

Coinbase is a type of web wallet that is ideal for beginners. This is because it features a simple design and it comes with several useful features that help both beginners and prod with their Bitcoin exchanges.

By signing up for an account with Coinbase, you will be able to send and receive Bitcoins through the mail and purchase and sell Bitcoins directly from Coinbase. Its full featured mobile app is compatible with Android and allows users to have access to all account functions even when on the go.

The founders of Coinbase have a good reputation within the Bitcoin network and they are the leading Bitcoin wallets when talking about legitimacy and security. Above all, they are among the few Bitcoin companies that have never suffered a major hack from since it started its operation.

If you will not mind waiting for a couple of days for your Bitcoins to arrive, Coinbase is a great place to purchase your Bitcoins. They have the easiest platform to use and they are the cheapest as well. After you sign up for an account, you need to link your Coinbase account to your bank account so you can start buying Bitcoins. Coinbase charges only 1% for the service fee and you will receive your Bitcoins after the transfer coming from your bank account will be cleared.

Coinbase is also one of those Bitcoin wallets that double as a web wallet and a mobile wallet. This means that you can buy and sell Bitcoins wherever you may be.

Bitcoin Wallet for Android and Blackberry

Those who are in need of Bitcoin wallets that they can use even when they are on the go can install those wallets that are compatible with Android and Blackberry. There is now a version of the wallet which will work for both Android and Blackberry operating systems. This type of wallet is called the software wallet and you retain complete control over your Bitcoins when using this. The wallet also works great for those phones that can read QR codes as well as NFC, which makes transferring coins to another user’s account easier. It is even much easier than writing a check.

Just make sure that you back up your wallet or you might risk all your Bitcoins if your mobile phone gets damaged. To back it up, simply make use of the Backup wallet feature that comes with the app.

Blockchain.info

If you want an easier and faster way to obtain Bitcoin wallets, all you will do is to access Blockchain.info. When you are on the site, you need to fill out the form and provide the information needed. Basically, Blockchain.info works like a web wallet similar to Coinbase, but it has a simpler setup and you can get access to your Bitcoin account even if you are traveling. Blockchain.info also provides several other services that are useful for all traders within the Bitcoin network.

Electrum

Electrum is a type of software wallet that allows Bitcoin users to set up an account with high level of security. The software must be installed before it can be used, but the great thing about the software is that it is extremely easy to install. Users will then be given a phrase that consists of 12 words and this will be used to recover all of the Bitcoins in case the computer fails.

The Bitcoin wallets are also encrypted by default in order to protect your account against hackers and other fraudulent transactions. The software is compatible with OSX, Linux, as well as Windows operating system. This software is highly recommended for beginners in the world of Bitcoins since it makes trading with Bitcoins easier.

BitInstant

Another place where you can purchase your Bitcoins is through BitInstant. They are able to provide more than 700,000 in cash deposit locations since they have partnered with ZipZap. With BitInstant, you can get your Bitcoins in only a few hours although be prepared for a little more complexity and cost.

ZipZap also charges $3.95 for the handling fee on top of the 4% that Bitinstant will charge you, so it can be a bit expensive. Also, you need to remember that BitInstant does not work like Bitcoin wallets, so you may have to go through a deposit location and deposit your cash then wait for a little while. It may not have that great feedback, yet it is still one of the best places to purchase Bitcoins.

LocalBitcoins.com

Another great place to purchase Bitcoins is through LocalBitcoins.com. But unlike your usual Bitcoin wallets, the website works just like a Craigslist for Bitcoins, allowing sellers and buyers in the same area to find each other and then meet up in order to trade Bitcoins for cash. Although this might seem like an easy and fast way to do, there are lots of risks involved on this type of transaction so it is best to exercise proper precautions.

Remember that you will be meeting with some strangers that you just met through the World Wide Web. It is therefore recommended that you meet up with them in a public place and in an area that is not very secluded. LocalBitcoins.com also features a rating system that can help you to easily find a trustworthy seller or buyer, so make sure to check the rating of the person you plan on meeting with.