A Guide to Bitcoin Acquisition and Exchange Sites
There has been a lot of buzz around Bitcoin lately, especially with the price breaking the $1000 mark. All the hype around the digital currency has piqued interest in many people who either had no idea what Bitcoin was a month ago, or were determined it was just a fad. With interest at an all time high many people are wanting to jump at the opportunity to buy, however getting started can be a bit confusing. This post will address the question of how and where to get started buying and selling bitcoins.
Just like paper money has many different rates of exchange, so does Bitcoin. The online bitcoin exchanges can be thought of in a similar way to different world currencies. One of the key differences is that bitcoin exchanges are more easily available to anyone with a computer. Additionally, with the price of bitcoin fluctuating so wildly in the upward direction, it is much more interesting to invest in bitcoin than in other currency.
Below is a list of online sites where bitcoins can be traded:
BTC-E – As of October 2013, BTC-E handles over a of all bitcoin exchanges which currently makes it the most widely used exchanges. BTC-E deals in several other digital currencies (LiteCoin, PrimeCoin, etc). Making it a pretty nice one-stop shop for all your digital currency needs.
Mt. Gox has been one of the most widely used bitcoin exchanges to date. MtGox users will have an account for bitcoins and one for US dollars. Mt. Gox has historically shown higher amounts for bitcoin per USD than other exchanges.
Kraken is a bitcoin exchange trading between bitcoins and the Euro (EUR). Funds can be added in USD and EUR.
Vircurex is a bitcoin exchange that deals with several different digital currencies (like BTC-E). Some of the currencies traded at Vircurex are Bitcoin, Namecoin, Litecoin, Devcoin, Geistgeld, Solidcoin.
In addition to online transfer of bitcoin, there is also the concept of local trading. Local trading is facilitated by sites to match digital currency buyers with sellers in their areas. Some local exchange sites are:
LocalBitcoins provides a way for buyers to connect locally to exchange Bitcoin for cash. This is an easy tool to use to connect buyers and sellers directly and locally
TradeBitcoin is another local exchange that connects buyers and sellers face to face. This site has a helpful search on the home page providing map plot points of local traders in your area.
There are many ways to buy bitcoins today and the list of exchanges above is by no means all of the exchanges available. The list above is meant to serve as a quick guide and example of the different ranges of bitcoin. When choosing an exchange, one should research the many exchanges available to see which is best suited for them. In all cases there will be varying fees associated with the transactions. This should be taken into consideration before choosing an exchange to work with. The online exchanges provide convenience and anonymity where as the local trading provide speed and the ability to transact with people locally.