How to buy and sell bitcoin ?
In the previous article, we saw what bitcoin is. If you haven’t read the article yet, click on the link right here at the bottom :
What is Bitcoin (easy version) ?
Primary and secondary market
Every market works the same way.
The primary market is the market in which an issuer introduces securities for the first time. In our case, the issuers are the miners who mine Bitcoin. Once these securities are acquired, they can be traded on the secondary market. The secondary market involves buyers and sellers of securities already issued and acquired on the primary market.
When miners extract bitcoin, they sell part of it to cover all their costs (electricity, mining machine, employees, etc). To do this, they must find buyers. Companies have created marketplaces to facilitate the meeting between these sellers and buyers.
These companies are nothing more than intermediaries between the seller and the buyer, on each purchase or sale he will take his commission since without him the transaction would probably not have taken place.
The marketplaces are very simple, just create an account quickly and get it verified, for the most part and you will have direct access to all markets that the platform covers.
We work especially with a serious platform with low fees that offers very interesting bitcoin savings solutions. For this, we recommend you to open an account with them to make your bitcoin purchases and sales, click on this link.
The principle is extremely simple, the seller gives his selling price and if a buyer agrees to pay this price, the transaction is automatically validated.
Not your keys, not your bitcoin.
The marketplace allows for the storage of bitcoin however remember that “not your keys, not your bitcoin.” because if you don’t have the private key to your wallet, you are not in full possession of your assets. They are fictitiously stored on the platform but they are under the responsibility of this platform so you will have to quickly find a long term storage solution to avoid any bad surprises.
This is sometimes what has happened, platforms have gone bankrupt and the cash held by customers has disappeared. It is your responsibility to properly secure your assets. For that, we invite you to our third part of the bitcoin tutorial: How to create your wallet ?