Bitcoin Step by Step : [PDF Download]

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“Spending Bitcoins is certainly a useful thing to be able to do. However, until it takes over as the primary currency, (I’m not suggesting it will.) users will need to be able to move government issued money in and out of the system. This is done through exchanges.

Currently, there are a number of exchanges that convert many different denominations to and from BTC. The price of the exchange is set by you, th buyers and sellers, in an open market format. Anyone can sell BTC for USD, EUR or other currency.

You can place an order to sell at a preset amount known as a limit order. When someone decides they need to buy BTC, they can purchase at that price. Users can also decide that they would like to buy BTC at a preset price.

They can enter a limit order and wait until someone determines it’s fair and sells their BTC. The exchanges charge a small fee. One such market MtGox, the largest such market, charges 2.5% per trade.”

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