How Do I Trade In Bitcoins?

21/10/2013 14:36

In today’s day and age there are many products and services available on the Internet that require Bitcoin payments (word press for example). At the same time there are a lot of us who have no clue about what these Bitcoins are and how we can get them. To start with, Bitcoin is a digital currency that is meant to be exclusively used to buy and sell products and make payments for services online. It is very much like paper money but as it is digital, it is a form of data that is strictly controlled by advanced mathematics and cryptography that allow all transactions to run from peer to peer. Bitcoin was only invented in 2009, so it’s a relatively free currency and as a result it is not easy to obtain as it’s supply is very limited. There are a few ways in which a person can obtain Bitcoins: You can obtain Bitcoins either by trading goods or services with people who have need for them are willing to pay in the form of Bitcoins. Some others like to mine Bitcoins by using computers to solve mathematical equations but since a lot of people are trying to mine, the one with the fastest computer wins and as we all know, state of the art computers require a lot of money. Even if you have a good consumer PC chances are that it will be a long time before you see a Bitcoin. The easiest and perhaps the most popular way is to purchasing Bitcoins with real money. You create a Bitcoin wallet and depending on your need or your budget, fill it up with Bitcoins. Like any other currency, Bitcoins can be converted to any currency like Dollar, Euro, Pound, Yen and others. As a result they can be used anywhere in the world, as long as an internet connection is present. Just like a lot of people like to trade bitcoins in foreign exchange in real life, online also many have taken upon the mantle of Bitcoin traders. Many people obtain Bitcoins solely for the purpose of trading them like they would with stocks and shares on Wall Street. As is the case with any other form of trading for profit, the idea here is to buy Bitcoins when the price is low and sell them when they hit a peak value. The value of Bitcoins like any other currency remains stable over a large time period however Bitcoin is considered a rather volatile monetary system and as a result, is subjected to drastic value fluctuations once in a while. This means huge profits can be made if you can predict a trend and time it right. Those people who are well versed with Bitcoin trading treat the volatile nature of the currency as an opportunity and don’t touch their Bitcoins unless they are sure that the time is right to sell them and make a profit. As exciting as all this sounds you need to get started somewhere. Take a look at the Bitcoin exchange over at to get a deeper insight into the world of Bitcoins.