Bitcoin hit a record high above $6,330 on Tuesday, October 31, after a dismal September in which the cryptocurrency fell to $2,900 a coin on September 15.
Two years ago, the idea of buying the virtual currency even at that price was laughable. After a rapid rise in value in 2013, the cryptocurrency’s value more than halved by mid-2015.
At its lowest point, one bitcoin was equal to about $230.
Given the currency’s covert nature, the average person still may not understand how buying and selling actually works.
Using the app Coinbase, which lets anyone trade bitcoins for a small fee, we decided to find out.
A brief warning: If you’re going to do this, tell your bank you’re about to buy bitcoin. More on that later.
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This is what the Coinbase app looks like on an iPhone.
When you first open the app, you’re presented with the latest price of bitcoin and its change within a certain period. You can see in the chart below how wild the latest moves have been. (We bought the bitcoin in January 2017.)
I happen to be one of the many who have never traded bitcoin before. There’s a certain level of wariness in buying into the cryptocurrency world.