Bitcoin

Bitcoin (Bit-coin) is an open-source cryptocurrency. It uses peer-to-peer technology, in order to manage transactions and to operate outside of any governmental jurisdiction. Bitcoin was released in 2009 by an anonymous person or group using the alias Satoshi Nakamoto.

Digital wallet
Bitcoins are stored virtually in "digital wallets". Digital wallets are located in the cloud, or on the trader's computer. Practically, the wallet acts as a kind of a virtual bank account, where users receive money to it, or send money from it.