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.