When I Buy Bitcoin Where Does The Money Go?

how’s it traded?

Do you hold on to the coins on Coinbase or do you “Transfer” them out and then exchange them on a different trading place like Shapeshift. I’m using the Ethereum (ETH) as an example here, but your answer also applies if you want to change which coin.

Note that I’m not talking about insider trading where people are trading cryptocurrencies with other people who have access to information that others don’t have. There is no conflict of interest when it comes to simply sitting at home, surfing Reddit, watching YouTube videos and discussing crypto-currencies openly with friends – self-regulation by market forces will ensure this stuff is well known within the crypto community. But this isn’t insider trading because all participants are informed parties by virtue of being active members of the crypto community.