Difference between Bitcoin Exchange and Bitcoin Wallet
Difference between Bitcoin Exchange and Bitcoin Wallet - For those of you who are accustomed to struggling in the world of Bitcoin and Blockchain, you will surely smile when you hear the question "What distinguishes the Bitcoin Exchange (or Bitcoin Exchange) from the Bitcoin (Bitcoin Wallet) Wallet?" Since the two are clearly different. But you will be surprised by how many people out there don't understand very well about these two things and sometimes think of it as the same thing. This article is specifically designed to describe in more detail what distinguishes a Bitcoin exchange and a wallet.
Bitcoin Exchange is a term for companies that provide a special platform that can be used by people from various countries to exchange Bitcoin with fiat currencies (such as US Dollars, Euros, Yuan, Rupiah, etc.) or with other cryptocurrency. For example, Indodax is a Bitcoin Exchange in Indonesia that you can use as a place to trade your Bitcoin with Rupiah or exchange it for free to other cryptocurrency available in the market such as Ethereum, Litecoin, Dogecoin, DASH, Ripple, and various other cryptocurrency.
Bitcoin Exchange usually provides a temporary wallet to accommodate fiat or cryptocurrency currency balances that will be traded by users. For example, Indodax provides temporary wallets to accommodate Bitcoin, Rupiah balances and other cryptocurrency supported by the market to make it easier for its users to trade. When you want to sell Bitcoin to Rupiah in Indodax, you must first move Bitcoin from your personal wallet (or it can be from Exchange or other companies such as cloud mining companies, faucets, etc.) to the temporary wallet available in your Indodax account. After depositing Bitcoin, you will see your Bitcoin balance in the Indodax account and from there, you can easily sell it.
If the Bitcoin exchange is established with the aim of serving the process of trading cryptocurrency, a Bitcoin wallet, or Bitcoin Wallet, is created purely to store or send Bitcoin. Bitcoin wallets are very diverse with different interfaces. You can see the types in the following Cointelegraph infographic.
To make it easier for users to transact from various devices, now there are many companies that move as wallet providers, such as Blockchain.info, Copay, and Airbitz. Unlike Bitcoin Exchange, the company that operates as a wallet provider does not provide a Bitcoin trading platform, unless the company also operates as an exchange, for example: Coinbase.
When you create a wallet on a site like Blockchain.info, you will get access to a Bitcoin wallet that can only be used to store and send Bitcoin. You can think of it as an ordinary wallet that you use to store your banknotes which of course can be taken at any time and moved to another place. But unlike a wallet for cash, this Bitcoin wallet is more like a bank account book that records all your transaction lists since the first time the wallet was made. When do you send / receive Bitcoin, how much Bitcoin is traded, and where or where is Bitcoin traded, everything is clearly displayed there. Even better, you don't need to check your transaction history only through the Blockchain.info site where you make your wallet. If the Blockchain.info server is down, you can still check it on various other sites. You can also access your Bitcoin wallet as long as you backup it properly.
How do you secure your wallet? We will discuss this in the next article.
From the description above, we can conclude an important point that distinguishes between a Bitcoin Exchange and a Bitcoin Wallet that is from the form of service provided. You can't sell or buy your Bitcoin in your Bitcoin wallet, and even though you can store your Bitcoin in a temporary wallet provided by a Bitcoin Exchange, Bitcoin wallets can provide extra comfort, convenience and security without servers that are rarely provided by Exchangers. If you imagine Bitcoin as gold, a Bitcoin Exchange is a gold shop where you can sell / buy gold with Rupiah, while you can consider Bitcoin wallets as personal safes that you can use as a place to store gold. You can set the safe level of the safe yourself, and only you hold the key to open it without having to depend on anyone. The difference with gold, Bitcoin 'safe' can be easily stored on your smartphone and can be taken anywhere to spend.
So many articles that I can share, about the Difference Between Bitcoin Exchange and Bitcoin Wallet. Hopefully with this short article, it can be useful for you.
Bitcoin Exchange
Bitcoin Exchange is a term for companies that provide a special platform that can be used by people from various countries to exchange Bitcoin with fiat currencies (such as US Dollars, Euros, Yuan, Rupiah, etc.) or with other cryptocurrency. For example, Indodax is a Bitcoin Exchange in Indonesia that you can use as a place to trade your Bitcoin with Rupiah or exchange it for free to other cryptocurrency available in the market such as Ethereum, Litecoin, Dogecoin, DASH, Ripple, and various other cryptocurrency.
Bitcoin Exchange usually provides a temporary wallet to accommodate fiat or cryptocurrency currency balances that will be traded by users. For example, Indodax provides temporary wallets to accommodate Bitcoin, Rupiah balances and other cryptocurrency supported by the market to make it easier for its users to trade. When you want to sell Bitcoin to Rupiah in Indodax, you must first move Bitcoin from your personal wallet (or it can be from Exchange or other companies such as cloud mining companies, faucets, etc.) to the temporary wallet available in your Indodax account. After depositing Bitcoin, you will see your Bitcoin balance in the Indodax account and from there, you can easily sell it.
Bitcoin Wallet
If the Bitcoin exchange is established with the aim of serving the process of trading cryptocurrency, a Bitcoin wallet, or Bitcoin Wallet, is created purely to store or send Bitcoin. Bitcoin wallets are very diverse with different interfaces. You can see the types in the following Cointelegraph infographic.
To make it easier for users to transact from various devices, now there are many companies that move as wallet providers, such as Blockchain.info, Copay, and Airbitz. Unlike Bitcoin Exchange, the company that operates as a wallet provider does not provide a Bitcoin trading platform, unless the company also operates as an exchange, for example: Coinbase.
When you create a wallet on a site like Blockchain.info, you will get access to a Bitcoin wallet that can only be used to store and send Bitcoin. You can think of it as an ordinary wallet that you use to store your banknotes which of course can be taken at any time and moved to another place. But unlike a wallet for cash, this Bitcoin wallet is more like a bank account book that records all your transaction lists since the first time the wallet was made. When do you send / receive Bitcoin, how much Bitcoin is traded, and where or where is Bitcoin traded, everything is clearly displayed there. Even better, you don't need to check your transaction history only through the Blockchain.info site where you make your wallet. If the Blockchain.info server is down, you can still check it on various other sites. You can also access your Bitcoin wallet as long as you backup it properly.
How do you secure your wallet? We will discuss this in the next article.
Difference between Bitcoin Exchange and Bitcoin Wallet
From the description above, we can conclude an important point that distinguishes between a Bitcoin Exchange and a Bitcoin Wallet that is from the form of service provided. You can't sell or buy your Bitcoin in your Bitcoin wallet, and even though you can store your Bitcoin in a temporary wallet provided by a Bitcoin Exchange, Bitcoin wallets can provide extra comfort, convenience and security without servers that are rarely provided by Exchangers. If you imagine Bitcoin as gold, a Bitcoin Exchange is a gold shop where you can sell / buy gold with Rupiah, while you can consider Bitcoin wallets as personal safes that you can use as a place to store gold. You can set the safe level of the safe yourself, and only you hold the key to open it without having to depend on anyone. The difference with gold, Bitcoin 'safe' can be easily stored on your smartphone and can be taken anywhere to spend.
So many articles that I can share, about the Difference Between Bitcoin Exchange and Bitcoin Wallet. Hopefully with this short article, it can be useful for you.
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