Cryptocurrencies such as Bitcoin offer a decentralised peer-to-peer form of transferring funds. Bitcoin’s value drivers and consequently its price dynamics are different from those of state-issued currencies, due to differing the motivations for its use. This project explores the characteristics of Bitcoin as a currency, its users and the market forces which drive its price variations. In addition, this project summarises the factors which differentiate it from traditional currencies and explores the important considerations when designing automatic trading agents. Existing trading agents for Bitcoin are explained and compared, and suggestions are made regarding the important directions for future research in this field.