What Is Bitcoin and How Do I Buy and Sell It?

When you heard the word “Bitcoin” a couple of years ago, you might have thought it was just a made up word. But there were plenty of people out there who heard “Bitcoin” and immediately thought that it was going to be the currency of the future. A lot of people had a hard time understanding the concept of Bitcoin and how you mine it and how you can actually use the money in your everyday life. But like most things, it began to evolve and before anyone knew it, it become a common word in our vocabulary.

Trading and Making a Profit From Bitcoin

The main reason people want to invest in Bitcoin is because just like the traditional stock market, there is money to be made. In the past, you had to convert your Bitcoin into actual USD in order to pay for anything. But these days, more and more businesses are starting to accept Bitcoin as a direct form of payment. The technology behind Bitcoin which is called “Blockchain” is also becoming more widely accepted and praised and is being picked up by large companies and utilizing the technology in many different ways.

Because Bitcoin is still relatively new, there are only a few systems online where you can sell, buy, trade and cash out with your Bitcoin. There are numerous “wallets” online where you hold you money and are able to convert your Bitcoin in actual US dollars.

You need to be registered by one of these systems in order to buy or sell a particular “coin.” As it was mentioned previously, all of these concepts and technology are still relatively new and there are few regulations that have been put into place. Some people are calling it the “wild, wild west.” Because of the lack of regulations and laws, make sure you thoroughly research the wallet or system that you are going to register your Bitcoin and future trades with. You can never be certain with anything in life, but you want to make an educated choice so that you don’t get suddenly scammed out of your money by a less reputable company. Unfortunately, most people are unable to get their money back when this happens.

Because new “coins” are being introduced so frequently, there are plenty of opportunities (and growing) to invest in Bitcoin. Whether you are interested in investing $5 or $1.5 million, there is money to be made and it is up to you to take the risk.