We bought and sold bitcoin - here's how it works

ReutersA 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.

But now Bitcoin is at an all-time high, and rising. Within the last month, the price of one bitcoin has climbed from $1,280 to around $1,480.

Given the currency's covert nature, 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.

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

Get the latest Bitcoin price here.