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We bought and sold $50 worth of Bitcoin - here's how it works

Chris WellerJan 6, 2017, 01:26 IST

Attendants pose with a bitcoin sign during the opening of Hong Kong's first bitcoin retail store.Reuters/Bobby Yip

A year and a half ago, the idea of buying the virtual currency Bitcoin was laughable. After a rapid rise in value in 2013, the cryptocurrency's value more than halved by mid-2015.

At its lowest point, one Bitcoin was equal to about $230.

These days, Bitcoin has made a comeback, and recently rallied over $1,000, before fluctuating wildly.

But given the currency's covert operations, 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.

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A brief warning: If you're going to do this, tell your bank you're about to buy Bitcoin, but more on that later.