As Bitcoin is held electronically and not in a physical form, you will need a Bitcoin wallet to hold your Bitcoin and to send and receive Bitcoin from.
When you sign up with Local Bitcoins they automatically generate a Bitcoin wallet for you. You can find this in the top right hand side of the Local Bitcoins page where the Bitcoin Logo is. When you click on this you can see options for both sending and receiving bitcoins to this wallet. You will also be able to see your transaction history there.
Using the Local Bitcoins wallet however is leaving your Bitcoin wallet in the hands of a third party. Local Bitcoins are renown as highly secure, however many users prefer to send their coins from their Local Bitcoins wallet to their own wallet which can come in a number of categories. Below we cover the main 3 Bitcoin wallets categories available.
Mobile Phone Wallet Applications
For using Bitcoins on a daily basis, i.e. paying for products or trading them in person, a mobile BTC wallet is an easy and essential option. It runs as an app on your smartphone, securing your private keys and giving you the option of paying for things from your phone.
Despite being an easy on-the-go solution for Bitcoin, mobile wallets applications are very prone to hacker attacks. As well as this if someone steals or gains remote access to your mobile they could very well access your Bitcoin depending on how you have set up security on your phone and wallet.
Desktop (PC and Apple) wallets
You can download a range of Desktop wallets and install them on your PC. They automatically store your private keys on your hard drive. Desktop wallets are better protected than Mobile Phone Wallet Applications, as they aren’t reliant on third parties for their data and therefore make them harder to access and steal from. Always remember though that they are still connected to the Internet, which regardless of your anti-virus and malware software, makes them intrinsically insecure. They are however are a great solution for people wanting to trade smaller amounts of Bitcoin from their computers.
If you are serious about your security, then the hardware wallet is the most secure way to store your Bitcoin. Unlike the other wallet types listed here, the hardware wallet is unique in that it stores the user’s private keys in a secure hardware device. Hardware wallets are often referred to as cold storage wallets.
There have been no verifiable accounts of bitcoin being stolen from a hardware wallet. Hardware wallets are immune to computer malware and viruses, the bitcoin stored cannot be transferred out of the hardware device in plaintext and in most instances the software that runs them is open source.
Presently these are not available to buy in Vanuatu, however we would recommend that if you are trading seriously in bitcoin that you acquire one from overseas and use it to hold the bulk of your bitcoin.