Finance Bitcoin just hit an all-time high — here's how you buy and sell it

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Using the app Coinbase, we ventured to buy and sell bitcoin, the popular cryptocurrency whose price has seen massive spikes in recent weeks.

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(Reuters)
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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, the offshoot also known as 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 the 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 alternative nature, the average person still may not understand how buying and selling 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.

This is what the Coinbase app looks like on an iPhone. play

This is what the Coinbase app looks like on an iPhone.

(Chris Weller)


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 bitcoin in early January, when it was valued much lower.)

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 bitcoin in early January, when it was valued much lower.) play

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 bitcoin in early January, when it was valued much lower.)

(Chris Weller)


I happen to be one of the many who have never traded bitcoin before. There's a level of wariness in buying into the cryptocurrency world.

I happen to be one of the many who have never traded bitcoin before. There's a level of wariness in buying into the cryptocurrency world. play

I happen to be one of the many who have never traded bitcoin before. There's a level of wariness in buying into the cryptocurrency world.

(Chris Weller)


However, Coinbase's interface makes it simple to enter the personal information needed to create your account.

However, Coinbase's interface makes it simple to enter the personal information needed to create your account. play

However, Coinbase's interface makes it simple to enter the personal information needed to create your account.

(Chris Weller)


User-friendliness quickly hit a snag. When I put in my address, the app didn't recognize I had already selected it from the autofill menu. I couldn't proceed unless I switched to the desktop app.

User-friendliness quickly hit a snag. When I put in my address, the app didn't recognize I had already selected it from the autofill menu. I couldn't proceed unless I switched to the desktop app. play

User-friendliness quickly hit a snag. When I put in my address, the app didn't recognize I had already selected it from the autofill menu. I couldn't proceed unless I switched to the desktop app.

(Chris Weller)


So switch I did. From the desktop portal, I could easily enter more identifying info.

So switch I did. From the desktop portal, I could easily enter more identifying info. play

So switch I did. From the desktop portal, I could easily enter more identifying info.

(Chris Weller)


The final step before entering my financial information was two-step verification for security, which Coinbase quickly sent to my phone.

The final step before entering my financial information was two-step verification for security, which Coinbase quickly sent to my phone. play

The final step before entering my financial information was two-step verification for security, which Coinbase quickly sent to my phone.

(Chris Weller)


I decided to give the app another try and opted to use my debit card to buy the bitcoin.

I decided to give the app another try and opted to use my debit card to buy the bitcoin. play

I decided to give the app another try and opted to use my debit card to buy the bitcoin.

(Chris Weller)


Entering all my information was just as straightforward as everything else. The problem was that I couldn't exit this screen. Neither the "buy" nor "not now" option registered. I had to press the X and start all over.

Entering all my information was just as straightforward as everything else. The problem was that I couldn't exit this screen. Neither the "buy" nor "not now" option registered. I had to press the X and start all over. play

Entering all my information was just as straightforward as everything else. The problem was that I couldn't exit this screen. Neither the "buy" nor "not now" option registered. I had to press the X and start all over.

(Chris Weller)


Ultimately, and frustratingly, it was back to the desktop. So far, the actual process of buying bitcoin was simple — the app itself was my only nemesis. My $50 ended up buying 0.0524 of one bitcoin.

Ultimately, and frustratingly, it was back to the desktop. So far, the actual process of buying bitcoin was simple — the app itself was my only nemesis. My $50 ended up buying 0.0524 of one bitcoin. play

Ultimately, and frustratingly, it was back to the desktop. So far, the actual process of buying bitcoin was simple — the app itself was my only nemesis. My $50 ended up buying 0.0524 of one bitcoin.

(Chris Weller)


No looking back! (Until I sell, of course.)

No looking back! (Until I sell, of course.) play

No looking back! (Until I sell, of course.)

(Chris Weller)


Oh. It appeared the price was falling pretty fast the morning I decided to buy. I went back to try again, doing my best to outrun the falling price.

Oh. It appeared the price was falling pretty fast the morning I decided to buy. I went back to try again, doing my best to outrun the falling price. play

Oh. It appeared the price was falling pretty fast the morning I decided to buy. I went back to try again, doing my best to outrun the falling price.

(Chris Weller)


I own bitcoin! Well, a small fraction of a bitcoin. But now this means I can sit on my hypothetical tiny pile of cryptocurrency and hope it amasses value.

I own bitcoin! Well, a small fraction of a bitcoin. But now this means I can sit on my hypothetical tiny pile of cryptocurrency and hope it amasses value. play

I own bitcoin! Well, a small fraction of a bitcoin. But now this means I can sit on my hypothetical tiny pile of cryptocurrency and hope it amasses value.

(Chris Weller)


Instead, I decide to sell off immediately. (But not before shedding a single tear for the 12 cents I've already had to part with.)

Instead, I decide to sell off immediately. (But not before shedding a single tear for the 12 cents I've already had to part with.) play

Instead, I decide to sell off immediately. (But not before shedding a single tear for the 12 cents I've already had to part with.)

(Chris Weller)


To sell bitcoin, Coinbase requires users to pair their bank account with the app — a credit or debit card won't suffice.

To sell bitcoin, Coinbase requires users to pair their bank account with the app — a credit or debit card won't suffice. play

To sell bitcoin, Coinbase requires users to pair their bank account with the app — a credit or debit card won't suffice.

(Chris Weller)


So I scrolled through the options to pick my bank.

So I scrolled through the options to pick my bank. play

So I scrolled through the options to pick my bank.

(Chris Weller)


And we're back to the desktop. When I tried to sell the bitcoin, the app told me that either the amount was invalid or I couldn't pay with the given method. I didn't understand what that meant and didn't want to enter a wrong number.

And we're back to the desktop. When I tried to sell the bitcoin, the app told me that either the amount was invalid or I couldn't pay with the given method. I didn't understand what that meant and didn't want to enter a wrong number. play

And we're back to the desktop. When I tried to sell the bitcoin, the app told me that either the amount was invalid or I couldn't pay with the given method. I didn't understand what that meant and didn't want to enter a wrong number.

(Chris Weller)


Luckily, the online experience is much smoother. My bank account showed up right where it should have, and I sold the bitcoin just as I bought it.

Luckily, the online experience is much smoother. My bank account showed up right where it should have, and I sold the bitcoin just as I bought it. play

Luckily, the online experience is much smoother. My bank account showed up right where it should have, and I sold the bitcoin just as I bought it.

(Chris Weller)


Since Coinbase wasn't linked to my bank account, the transaction would take a few days to process.

Since Coinbase wasn't linked to my bank account, the transaction would take a few days to process. play

Since Coinbase wasn't linked to my bank account, the transaction would take a few days to process.

(Chris Weller)


A small hiccup: When I went to sell the bitcoin, I had to estimate the amount. The numbers were inconsistent in certain places depending on the bitcoin value or the dollar value. I ended up with one penny left over.

A small hiccup: When I went to sell the bitcoin, I had to estimate the amount. The numbers were inconsistent in certain places depending on the bitcoin value or the dollar value. I ended up with one penny left over. play

A small hiccup: When I went to sell the bitcoin, I had to estimate the amount. The numbers were inconsistent in certain places depending on the bitcoin value or the dollar value. I ended up with one penny left over.

(Chris Weller)


When I tried to close the account, that penny proved to be an issue. As much as I tried to send the lone cent with addresses I found around the internet, Coinbase didn't let me. Here's to hoping bitcoin skyrockets and my investment quadruples in value.

When I tried to close the account, that penny proved to be an issue. As much as I tried to send the lone cent with addresses I found around the internet, Coinbase didn't let me. Here's to hoping bitcoin skyrockets and my investment quadruples in value. play

When I tried to close the account, that penny proved to be an issue. As much as I tried to send the lone cent with addresses I found around the internet, Coinbase didn't let me. Here's to hoping bitcoin skyrockets and my investment quadruples in value.

(Chris Weller)

Oh, and a final thing: When I tried to buy lunch after this, my card got declined. My bank had blocked the card after the initial purchase.

Apparently, I wasn't the only one who was wary about going into all this.