Windows 8 lets you create two types of user accounts: Microsoft account and Local account. While the Local account is nothing but a normal user account without an email address (similar to the user account in previous versions of Windows), the Microsoft account uses your email address.
A Microsoft account is an email address and password that you use to sign in to Windows. When you use Microsoft account to sign in to Windows, you’ll be able to download apps from Windows Store, sync your desktop personalization, ease of access, browser and app settings across all your computers signed in using the same Microsoft account.
Another advantage signing in using Microsoft account is that you can share your photos, documents, and other files using native apps. You can also use your Microsoft account to sign in to Xbox LIVE, Windows Phone, and other Microsoft services.
How to create a new Microsoft account:
Step 1: Move the mouse cursor to the upper or lower right corner of the screen to see the charms bar. If you are running Windows 8 on touch-screen device, swipe from the right edge of the screen to see the charms bar.
Step 2: Click or tap Settings and then click or tap Change PC settings.
Step 3: On the navigation pane of PC settings, click or tap of Users to see user account related settings.
Step 4: On the right-side, click or tap on Add a user button. Enter the email address that you wish to use as Microsoft account and click Next button.
Step 5: Type a strong password for your Microsoft account, re-enter the password, type your first name & last name, select your county/region, and finally enter your ZIP code before clicking or tapping Next button.
Step 6: In the following screen, you will be asked to enter your phone number or alternate email address so that you can use your phone number/alternate email address to recover your password and keep your account more secure. Also select a secret question and type an answer.
Step 7: Lastly, enter your birth date, select gender, type the characters shown, and then click or tap Next button.
Step 8: In the last screen, you will see an option to turn on Family Safety feature for the new account. Enable “Is this is a child’s account? Turn of Family Safety to get reports of their PC use” option if the account is going to be used by a child. Click or tap Finish. You are done!
If you would like to migrate your current Local account (user account without email address) to Microsoft, simply follow the given below steps.
How to switch your Local account to Microsoft account:
Step 1: Press Windows + C hotkey to see the charms bar, click Settings, and then click or tap Change PC settings.
Step 2: In the left pane of PC settings, click on Users and then click or tap Switch to a Microsoft account button, enter your email address and then follow the procedure given in Step 5 through to Step 8 to upgrade your Local account to Microsoft account.