Trade Bitcoins – Sure, But What Are Bitcoins?

What are Bitcoins? They are a form of money that is actually referred to as “cryptographic digital currency”. And they are considered very secure and safe.

How they are made 

Bitcoins are produced at a rate that is controlled using a program on the computer. This means they will not become unstable as the currencies around the world have become. Since Bitcoins are open-source – meaning nobody owns them - and are decentralized meaning no institutions of any type involved in trading Bitcoins this makes the cost much lower for both the seller and the buyer. There is no fine print or limits to transactions when you tradeBitcoins since they are not regulated by a bank.

How to get them

Anyone can purchase Bitcoins in one of 2 ways. Buy them through an exchange platform, or buy them directly through other people who have Bitcoins for sale.

Both of these methods do require the use of traditional currency such as the US dollar. There also are a number of websites that are dedicated to finding Bitcoin users. To trade with others, you work out a time and a place and make the trade.

Have Been Around For a While

Bitcoins are not new – they have been around for a while but have only become known to the public during the last presidential election. Think back and you will remember that Mitt Romney was having problems deciding when he would release his tax records and how much information he would release. There is a story about a group who anonymously acquired Mitt Romney’s tax records and demanded one million Bitcoins as payment to not release the information. Bitcoins? No everyday person knew what that was but it did not take long for the news about Bitcoins to spread.

Why were they started?

There is also another story that a group of people invented these Bitcoins that are opened sourced because they believed that the US dollars is going to collapse soon and they wanted to have a safe and secure way to stash their money. Now whether either of these stories are true are not – who knows. But Bitcoins are now a new word in the investment community.