Taking a punt with bitcoin

Screen shot of the bitbargain.co.uk trading page

Bitbargain.co.uk trading page

I have ventured into buying aprox. £500 worth of bitcoin, as more people have purchased this new currency its value has increased significantly over the past few months. I think it will continue to gain as people understand it more and feel more at ease purchasing bitcoins and then buying goods with them on the internet. As its popularity grows so will demand, I am speculating it’s value to increase against the £Sterling to then sell and make a profit.

I purchased 0.3 BTC for £232.50 on 01/12/13 and 0.4 BTC for £288 on 05/12/13.

The process of buying was a bit daunting. After a little searching and reading I found bitbargain.co.uk, a trustworthy online marketplace for trading bitcoins in the UK. After registering I was able to search sellers by entering the amount I wanted to buy. You don’t have to buy 1 whole bitcoin, you can search and buy such as 0.01 bitcoin or 0.5 bitcoin. When you agree to buy, a transaction window pops up with the sellers bank account details, sort code etc. You then go to your online banking and make a cash transfer to the sellers account, all the time the transaction window stays open. The seller monitors his/her bank account and waits for the money to come in, as soon as it does, he/she confirms receipt and you are credited the bitcoin to your bitbargain.co.uk account… Phew!

I then discovered that I needed to do something else. Bitbargain.co.uk charges for keeping bitcoin in your account after a short period, I needed to transfer my bitcoin out of bitbargain.co.uk and into something called a digital wallet. After a little searching and reading I found Blockchain.info, created a wallet and transferred the bitcoin from my bitbargain.co.uk account into my wallet… Phew!

The bitcoin now sits in my digital wallet from which I can buy goods from companies that accept bitcoins, or in my case leave it and see what happens.

For more info on bitcoin, this web site is a good place to start: www.weusecoins.com

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