Bitcoin hit a record high of $3,402 on Monday.
The cryptocurrency’s value is surging a week after bitcoin split into two. While bitcoin has hit new heights, bitcoin cash, or bitcash, has been tumbling.
“All that money that seemingly came out of thin air to pump up the value of Bitcash is now being fed right into Bitcoin,” Mati Greenspan, an analyst at trading platform eToro, told Business Insider’s Oscar Williams-Grut. “Bitcash has fallen from its peak of $12 billion all the way down below $4 billion this morning.”
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.
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 early January, when it was valued much lower.)
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.