Bitcoin Exchange, or exchange Bitcoin, is a designation for companies that provide a (platform) is available which can be used by people from different countries to exchange Bitcoin with fiat currency (such as US dollar, Euro, Yuan, Rupiah, etc.) or by cryptocurrency others. For example, Bitcoin.co.id is a Bitcoin Exchange in Indonesia that you can use as a place to trade your Bitcoin with real money or exchange it free of charge to other cryptocurrency available in the market like Ethereum, litecoin, dogecoin, DASH, Ripple, and various other cryptocurrency. Bitcoin Exchange typically provide a wallet temporarily (temporary wallet) to hold the balance of fiat currency or cryptocurrency to be traded by the user.
When Bitcoin exchanges established with the aim to serve the trading process cryptocurrency, wallet Bitcoin, or Bitcoin Wallet, created purely to store or transmit any Bitcoin. Bitcoin wallet shape is very diverse with different interfaces. You can see the type of-its kind in the infographic below Cointelegraph work.
To facilitate the transaction of various device users, there are now many companies are moving as a wallet providers, such as Blockchain.info, copay, and Airbitz. Unlike the Bitcoin Exchange, a company engaged as a wallet providers do not provide Bitcoin trading platform, but the company also operates as an exchange, for example: Coinbase.
When you create a wallet on sites like Blockchain.info, you will gain access to a Bitcoin wallet that can only be used to store and transmit Bitcoin only. You could think of it as a regular wallet that you use to keep your paper money which of course can be taken at any time and moved elsewhere. But unlike the wallet for cash, Bitcoin wallet is more like a bank book that records all your transactions since the list was first purse was made. When did you send / receive Bitcoin, how many Bitcoin transacted, and where or where Bitcoin was transacted, all displayed clearly there. More great again, you do not need to check your transaction history only through Blockchain.info site where you made any wallet. Suppose Blockchain.info server is down, you can still check on various other sites. You can also still access your Bitcoin wallet as long as you are backing it well.
Bitcoin Exchange differences and Bitcoin Wallet
From the explanation above, we can conclude an important point that distinguishes between a Bitcoin Exchange and a Bitcoin Wallet is of the form of service provided. You can not sell or buy your Bitcoin in your Bitcoin wallet, and even though you can save your Bitcoin wallet while that provided by an Exchange Bitcoin, Bitcoin wallets could provide comfort, convenience and extra security without a server that is rarely provided by Exchanger. When you imagine Bitcoin as gold, a gold shop Bitcoin Exchange is a place where you can sell / buy gold with real money, Bitcoin wallet while you can regard as a personal safe that you can use as a place to store gold. The safe level of security you can set yourself at will, and only you hold the key to open it without depending on anyone. The difference with the gold, ‘safe’ Bitcoin can be easily stored in your smartphone and can be taken anywhere to spend.
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