CSE1006 Study Guide - Final Guide: Cryptocurrency Exchange, Fiat Money, Bitcoin

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By currency exchange we mean trading bitcoins for fiat currencies like dollars and euros. B has 10 bitcoins and a want to buy 5 bitcoins. So, a pays 500 rs and takes 5 bitcoins from b. After 2 days the value of bitcoin is 1 bitcoin = 150 rs. So, a sells 5 bitcoins for 750 rs. In the bitcoin world websites like bitcoincharts. com show the bitcoin exchange rate for various fiat currencies on different exchanges. We can exchange bitcoins for money in online exchange markets. Another option is to meet people to trade bitcoins in real life. On localbitcoins. com, for example, you can specify your location and that you wish to buy bitcoins with cash. The site then lists people who at the time of your search are willing to sell bitcoins at that location, and in each case, it tells you what price and how many bitcoins they"re offering.

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