Trading Bitcoins on an exchange

Aside from the risks involved, trading Bitcoin can be rewarding. For our introduction into trading Bitcoins, we will setup an account with Coinbase Exchange. Coinbase is a Bitcoin wallet service. They offer the option to buy and sell bitcoin from your wallet similar to Circle. In addition, they offer a full service platform for trading Bitcoin in real time.

Coinbase, founded in 2012, is funded by top-tier investors, including the New York Stock Exchange. They have a license to operate as a money transmitter in more than 15 states in the United States. Users who are living in the US and Europe can fund their accounts with US dollars or Euros.

Setting up an account

To start trading on Coinbase Exchange, you will need to sign up with Coinbase for the wallet and verify your account. From your account you will be able to link your bank account to transfer funds. Similar to Circle's requirements, Coinbase will prompt you for a valid identification as well as...