ipfs uses a global local object repository, added to ~/.ipfs. See the full instructions over at ipfs.io 
To initialise this repository issue:
> ipfs init
Now, try running:
ipfs cat /ipfs/QmPXME1oRtoT627YKaDPDQ3PwA8tdP9rWuAAweLzqSwAWT/readme
You can explore other objects in there. In particular, check out quick-start:
ipfs cat /ipfs/QmPXME1oRtoT627YKaDPDQ3PwA8tdP9rWuAAweLzqSwAWT/quick-start
Once you're ready to take things online, run the daemon in another terminal:
> ipfs daemon Initializing daemon... API server listening on /ip4/127.0.0.1/tcp/5001 Gateway server listening on /ip4/127.0.0.1/tcp/8080
Now, you should be able to get objects from the network. Try:
ipfs cat /ipfs/QmW2WQi7j6c7UgJTarActp7tDNikE4B2qXtFCfLPdsgaTQ/cat.jpg >cat.jpg open cat.jpg
You can also check it out at your own local gateway:
> curl "http://127.0.0.1:8080/ipfs/$hash" I <3 IPFS -<your username>
Or in your browser copy and paste the following url:
http://127.0.0.1:8080/ipfs/QmW2WQi7j6c7UgJTarActp7tDNikE4B2qXtFCfLPdsgaTQ/cat.jpg
There is also a web console you can use to check the state of your node. On your favourite web browser, go to:
http://localhost:5001/webui