1 Bitcoin newcomers will find a variety of exchanges and wallets competing for their business.
Some are full-blown exchanges for institutional traders, while others
are simpler wallet services with a more limited buying and selling
capabilities.
Most exchanges and wallets will store amounts of digital and/or fiat currency for you, much like a regular bank account.
Exchanges and wallets are the best option if you want to engage in
regular trading and speculation, don't need total anonymity and don't
mind lengthy bureaucratic setup procedures that usually involve proof of
identity and supplying detailed contact information.
This is the law in most countries and no regulated exchange can get
around it, as any company interfacing with the current financial system
must meet 'know your customer' (
KYC) and anti-money laundering (
AML) requirements.
The best exchange option also depends where you're located.
For more information, you can check out
this list of major bitcoin exchanges/wallets around the world, and the payment options they allow.
See our guide: How to buy bitcoins in the UK
At this time, the largest full trading exchanges by volume are
Bitfinex (Hong Kong),
Bitstamp (US),
BTC-e (unknown),
Kraken (US),
Huobi (China and Hong Kong),
OKCoin (China) and
BTCC (China).
Coinbase is
a popular wallet and exchange service that will also trade US dollars
and euros for bitcoins. The company has web and mobile apps. Originally a
US-only service, Coinbase has recently opened up to a large number of
European countries.
Circle offers
users worldwide the chance to store, send, receive and
exchange bitcoins. Currently only US citizens are able to link bank
accounts to deposit funds, but credit and debit cards are also an
option.
Apps for iOS and Android are now available.
Wallet and bitcoin debit card provider
Xapo has also recently entered the fray, offering deposits in fiat currency that are converted to bitcoin in your account.
Coinjar, an exchange and wallet provider, is the market leader in Australia. The Melbourne-based startup raised $500k AUD in
venture funding and won an award at
Finovate Europe 2015 for their user experience. The company released a debit card service, '
Coinjar Swipe' in February 2015.