How to safely buy, store and sell Bitcoins

Hi,

I've been investigating Bitcoin on the Bitcoin Forum, Reddit, and mainline media with the intent to one day buy some. Brilliant protocol, security with a lot of options and flexibility with timed payments, low transaction fees, but both buying and selling seems risky because of the middle men I would have to deal with. I remember when I was starting, reading a study of failed exchanges, something like 50% had failed or been hacked, and only a few returned the customers funds (Mt Gox had returned funds at that time). But you'd have to be happy buying at $1 and selling at $600.

1. I get the idea that blockchain is reasonable because you actually hold the key, even though you have an account with them. And Local Bitcoin is ok because again you hold the bitcoin and key in your own wallet. But there is an issue with a buyer locking your coins or cash in escrow and seeing how the price changes, ready to bail or buy depending on which way it moves. Any advice on reasonably safe exchanges? But never keep much on an exchange, because it's only a promise that there is really a Bitcoin there, right?

2. Computer wallets, which are the safest?

It's good to see you Forum regulars comment on the shady posts, but with restraint. I think it's a pretty good forum.

Thanks for any advice.