Wallets

There are many options for storing your Bitcoin earnings.  Beware of sites that sound too good to be true (as they typically are).  I use a few different methods and I will outline them below.

Coinbase:

Coinbase uses “cold storage” for 97% of it’s users (which is the most secure way of holding Bitcoins.  They also enforce a two-factor authentication which means that in addition to logging in with a username and password you are required to have an “app” on your phone or accept sms text messages that will contain a 1 time use code.  They offer a convienet mobile application for transferring Bitcoins on the go.

This site has a LOT of verification involved, but that is to prevent fraud. If you want to be anonymous I would not recommend this site; however, if you are an honest person this site can’t be beat for ease of use.

Once you have everything verified it couldn’t be easier to buy and sell Bitcoins in USD.  With Coinbase you can withdraw Bitcoins to to your regular bank account (in USD)  at the current exchange rate.  You can also buy Bitcoins in USD at the current exchange rate (in USD). This is a nice feature as it saves the hassle of using the Exhange markets.

Blockchain:

Blockchain is an online “wallet” used to transfer Bitcoins to and from other Bitcoin accounts.  The advantage to Blockchain is that there are no transaction fees (or very minimal if below a certain threshold.  I keep a small amount on Blockchain for my day-to-day purchases.

Blockchain also has a wealth of information including statistics on the Bitcoin network, charts and general exchange statistics.

Multibit:

MultiBit is a secure, lightweight, international Bitcoin wallet for Windows, MacOS and Linux.  This wallet is on your desktop/computer and can be integrated with some online wallets (like Blockchain).  This method is only as secure as your computer is, since the wallet is ON your computer.  The big advantage is that you don’t have to login to a website to send/receive Bitcoins.