How to Sell, Buy and keep a track of Bitcoin? Currently, we witnessed the sudden bloom of cryptocurrency market and Bitcoin is ruling the cryptocurrency market. It is very hard to find any bank, a company or a firm, which accepts the cryptocurrency. Cryptocurrency is nothing but virtual currencies whose value keeps on increasing over time. The inventor of the most valued cryptocurrency, the bitcoin developed a peer to peer cash system which is electronic.
The main purpose was to make decentralized digital cash system which can prevent the double spending of a system i.e. paying for the same thing twice. In simple words, cryptocurrencies are just limited entries to a database which cannot be changed without fulfilling some crucial conditions.
The working of cryptocurrencies is simple. You need to register for a cryptocurrency wallet, get an address, buy a cryptocurrency and store it in the wallet. Generally, by cryptocurrency, we mean Bitcoin because it has reached such tremendous values that no other cryptocurrencies have reached. There are numerous other cryptocurrencies such as ethereum, litecoin, dogecoin and many more. The Bitcoin, however, seems to be popular with them all.
Bitcoin faced an exponential rise from $1000 in 2016 to over $15000 by the end of 2017. Bitcoin is the first decentralized cryptocurrency and it all started 9 years ago in 2009. As of December 2017, one Bitcoin will cost you nearly $15000. The market cap of Bitcoin is $243.4 billion as of December 2017. Let us take a look at how to sell buy and keep a track of Bitcoin.
Buying a Bitcoin is not that difficult but of course is a tedious process.
- To buy a Bitcoin, you will need to first choose an exchange where you can convert your currency into a Bitcoin. There are numerous exchanges out there like Zebpay coinbase, bitfinex, Kraken, Gemini, bitwage, bitstamp wall of coins and many more.
- Next thing you will need is a wallet, which will store your Bitcoins. There are apps which stores your Bitcoins on private servers. To get a wallet you can choose any exchange and download its app on your Smartphone or Desktop. You need to sign up for the app by filling in your genuine information. The bank information that you will be provided should be correct because it is the key to buy Bitcoin.
- Once they verify all your details, your account will be approved but then you need to wait for few days before getting approved.
- To start buying a Bitcoin you need to check the trends of Bitcoin i.e. if the rate of the Bitcoin is lower than previous day or not or else you may end up in the loss.
- Now that you have decided to buy some Bitcoin, you need to have an amount in your bank account that matches the value of the Bitcoin that you desired to buy.
- You can check your Bitcoin in the Bitcoin wallet of yours in the app and thus you can store the Bitcoin as long as you want.
Selling a Bitcoin
Selling a Bitcoin is much easier but then you need to apply some intelligence before selling one.
- The key point to remember before selling a Bitcoin is that you need to check if the amount in which you bought a Bitcoin in, is lower than the current amount of Bitcoin or not? Once you have verified that you have made a profit, you can sell the Bitcoin.
- Open the wallet app where you have stored your Bitcoin into.
- Click on the selling module in the app.
- In the next page, enter the amount of Bitcoin you want to sell.
- After confirmation of your sell, you will receive the amount in your local currency which you can transfer to your local bank account as well.
Trading a Bitcoin
You may incur losses while buying or selling the Bitcoins in the above-mentioned ways. Trading is the ultimate way to get benefit from the cryptocurrency market. In exchanges, you may need to pay charges to them and thus it may not benefit you in case the amount is small. But however, there is a flip side of the coin which is trading. In trading, you as a seller or buyer set your own set of rules and thus may vary with the original values of Bitcoin. Suppose that you need 0.2 Bitcoins and the current value of 1 BTC is 15000$, but since you are taking a greater amount of Bitcoin, hence you may get some traders/sellers who will set the prices lower. In the same way, you can sell your Bitcoins too but then you need to check and compare all the traders. Let us take a look at how it is done?
- You can trade with the buyer or seller directly by giving your wallet address to receive the Bitcoin in case you want to buy one or you can ask for the bitcoin address of the buyer and send the bitcoin directly in their wallet address.
- In peer to peer trading places, you can sell your Bitcoin to people who meet your requirements. There are two groups in these marketplaces; one who wants to buy goods with Bitcoin and does not accepts virtual currency directly. The other group is more interested in buying with a debit or credit card. The marketplace acts as an intermediary platform for selling, buying and storing Bitcoin. Purse and Brawker are some of the marketplaces to be named.
Bitcoin is the most valued currency to date but these are virtual currencies that are not centralized. So their values can get diminished in no time and that is the thing you need to take care of the most. Instead of investing all in Bitcoins try other currencies as well. Ethereum is currently becoming the next Bitcoin on the market and it is highly likely that it may cross Bitcoin in near future.