Off late, Bitcoin exchange has become one of the most popular forms of trading by exchanging electronic currencies. Bitcoin is a form of online currency that is held and created electronically. No individual or market forces control it. They aren’t printed currencies like Euros or dollars, rather they’re produced people who run computers all around the world, using software that is used to solve mathematical problems. In fact, this is known as the very first example of a ballooning category of money, which is known as ‘cryptocurrency’.
Bitcoins as currencies different from traditional currencies
Bitcoins can be used to purchase things electronically. In a sense, they are almost like conventional dollars, Euros or yen that can be traded digitally as well. According to DC Forecasts, the only thing that makes it special and at the same time from traditional currencies is that it is decentralized. There’s no single institution that controls this network of Bitcoins. Some people are at ease while trading with Bitcoins as they’re sure about the fact that no big bank can control their money. You must be wondering about who prints Bitcoins! Well, Bitcoin mining is done through computer power distributed over a network. You may check out bitcoinprbuzz.com to know more on Bitcoin mining.
Bitcoin exchange – How to sell them and make money
Selling Bitcoin isn’t as simple as buying them but you need not fret as websites like blog.cex.io are there to help you out. When deciding how to go about with Bitcoin exchanging or selling off your Bitcoins, you initially need to consider the methods that suit your situation, selling Bitcoin in person or selling Bitcoin online. Have a look at some information on the advantages and disadvantages of each option.
Selling off Bitcoins online
By far, selling Bitcoins online is the most common ways of trading. The 3 ways in which you can go about selling Bitcoins online are as follows:
- Direct trades: There are some websites through which you can directly trade your Bitcoins but you will have to register as a seller. This will include verifying your identity. Once you’re done with creating your identity, you can post an offer, signal that you’re someone who wishes to sell and the website will automatically allow you when a buyer wants to trade with you. This process requires your patience.
- Exchange trades: The other way in which you can do Bitcoin exchange is through exchange trades. Here too you require verifying your identity but you don’t have to do too much work to organize the sale. Exchanges usually act as intermediaries who hold everyone’s funds. You just have to place a ‘sell order’, state the volume and the type of currency that you wish to sell and the price per unit. As soon as someone else places a matching buying order, the exchange will complete the order for you.
- Peer-to-peer trading marketplace: A new kind of development is the advent of websites that bring together 2 groups of people with complementary and specific needs. The first group is those who want to use Bitcoins to purchase goods from websites that don’t directly accept digital currencies. The second group consists of those who would like to purchase Bitcoins with a debit card. The marketplace too, acts as an intermediary, thereby offering users the platform and escrow for transactions.
The universal way in which one can move money throughout the world is international wire transfers as most Bitcoin markets support this specific method of transferral. Yet another way of transferring money to your bank after selling Bitcoin is through the SEPA or the Single European Payments Area.