Trading – How to Buy and Sell Bitcoins
Bitcoins are traded in various places. There are large Bitcoin exchanges like Coinbase, BitStamp or Bitfinex, where people can buy or sell Bitcoins. These function similar to the stock markets, and they have a fairly large influence on the price of bitcoins. Before starting investment in cryptocurrency, you should read:
The process of buying or selling Bitcoins is incredibly easy. It’s honestly no more difficult than making or receiving online payments. When using cryptocurrencies, you have a public key and a private key. In order to receive money, the sender has to know the receiver’s public key. In order to send it, the sender has to know the receiver’s public key.
In order to store these keys, Bitcoin users need to use a wallet. A wallet could be as simple as a piece of paper with public keys written down on them, to as complex as a flash drive used specifically for that purpose.
Once you have your wallet, all you have to do is register on one of the bitcoin exchanges. You will need to withdraw some actual money from your bank account to buy bitcoins. Simply go to the exchange website and place a buy order for the number of Bitcoins you wish to buy.
If on the other hand, you wish to sell, you need to verify your identity on the exchange and place a sell order. However, depending on the amount of cash you need, it may take a while for the exchange to actually send you the money.
The other method is a straight up peer to peer transaction. By sharing your public key and decoding the problem sent to you, you can complete a transaction.
Buying of Bitcoins is very easy for a first-time buyer to get started
Step 1: Download a bitcoin wallet. A bitcoin wallet is, for all intents and purposes, the bank account which you will use to trade bitcoins.
Step 2: Sign on to a cryptocurrency exchange.
Step 3: Place a buy order on the number of bitcoins you want. It is not necessary to buy whole bitcoins, you can buy small percentages of them too.
Step 4: Pay for the bitcoins using your money.
You can also buy Bitcoin with Credit Cards/Debit Card. Check this post for more detail:
- How to Buy Bitcoin With Credit Card
Done! You are now in possession of as many Bitcoins as you have decided to buy!
The process of selling them is equally easy
Step 1: Make sure you have the Bitcoins in your wallet that you want to sell.
Step 2: Place a sell order on the exchange.
Step 3: Confirm the sale.
Done! Bitcoin is a technological leap forward that is changing the nature of the financial market. It will slowly but surely transform our future, and it’s something well worth investing in. So be smart, be careful and invest wisely. For more information, you can read this advance guide to buy Bitcoin