How the Bitcoin price accrues

Bitcoin is organized consistently with no central authority. Thus, there is no official Bitcoin price – the price of the virtual crypto-currency is determined locally and reflects the current consensus of buyers and sellers resist.

Bitcoins are mainly traded on online exchanges. This Internet marketplaces allow their subscribers to buy and sell Bitcoins works like stock exchanges. Every user has an account there in Bitcoins and one in another currency, for example, in US dollars or euros.

Each user of the stock market, who has sufficient credit, proposed sale and purchase bids. It can be decided freely, at what price the trade will be unwound. When someone is ready to accept the bid, the trade is concluded with the virtual currency. Often the desired quantities or prices of buyers and sellers do not match. Therefore, the exchanges allow different types of bids.

The simplest form is the limit order: The interested parties are the maximum or minimum price for the buy or sell it is ready. Since it may happen that a bid will not be accepted, many exchanges also offer the market order.

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