As we mentioned in our article Introduction to Bitcoins, at the present time, in order to mine the cryptocurrency you will need an advance hardware that could help you do that. Because of that issue, probably most of the ones who are reading this article can’t afford to buy an equipment that costs a few thousands dollar on average.
Source: www.madeforbitcoin.com
Bitcoin Exchanges
However, you still have the possibility of profiting from the price fluctuations of bitcoin, through a bitcoin exchange. Now that you know what are bitcoins, you need to understand also that a bitcoin exchange is a virtual marketplace, where individuals or institutions can buy or sell bitcoins or any other cryptocurrency, using different currencies. The bitcoins could be exchanged for either fiat money or other cryptocurrencies like ethereum.
Simply put, it is very similar to trading stocks of forex. However, one critical aspect that you should take into account is about regulation. So, you will need to make sure you are trading bitcoins through a regulated exchange in order to avoid being trapped into a scamming scheme.
Since you already know what are bitcoins, let’s move on and talk about the most popular bitcoin exchanges.
Coinbase
Coinbase is one of the most popular bitcoin exchanges, based in the United States, founded in 2012 and supports over 32 countries. Among other facilities, the company offers a mobile wallet and offline storage + insurance for every currency stored on its servers. It also claims to have changed around 20 billion dollars in volume thus far.
Gemini Exchange
Another United States based company, founded by Winklevoss twins, located in Ney York and available in 45 US states + UK, Hong Kong, Singapore and South Korea. It is also regulated by the New York’s Department of Financial Services.
To sum up, if you are not able to mine bitcoins, you could still profit from its price fluctuations and you could do that through a bitcoin exchange.
Risk Warning and Disclaimer
Trading cryptocurrencies on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance.
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