Bitcoin is a digital form of money that exists only online. No bank, company or government controls it. People around the world use it to send money, to save, and to invest.
If you are new to crypto, this guide explains Bitcoin in plain English.
Where did Bitcoin come from?
Bitcoin was created by a person or group using the name Satoshi Nakamoto. The idea was published in 2008, and the network started running in January 2009. Nobody knows who Satoshi really is.
How does Bitcoin work?
Think of Bitcoin as a shared notebook that thousands of computers keep a copy of. Every payment is written in that notebook. Because so many people hold a copy, it is very hard to cheat or change the records.
This shared notebook is called the blockchain. Computers that keep it running are rewarded with new Bitcoin. This process is called mining.
Why is Bitcoin special?
- Limited supply. Only 21 million Bitcoin can ever exist. This is why many people compare it to digital gold.
- No middleman. You can send it anywhere in the world without a bank.
- Open to everyone. Anyone with a phone and internet can use it.
- Transparent. All payments are visible on the public blockchain.
What is the Bitcoin halving?
About every four years, the reward for mining Bitcoin is cut in half. This is called the halving. It slows down how fast new Bitcoin is created. Many traders watch it closely because lower new supply can affect the price.
How do people buy Bitcoin?
- Choose a trusted exchange in your country.
- Create an account and verify your identity.
- Add money by bank transfer or card.
- Buy Bitcoin. You can buy a small part, you do not need a whole coin.
- Move your Bitcoin to a personal wallet if you plan to hold it long term.
What are the risks?
Bitcoin's price can rise and fall very fast. Scams are common, and if you lose your wallet password, nobody can recover your money. Only invest money you can afford to lose, and never share your wallet recovery phrase with anyone.
Final thoughts
Bitcoin is the first and largest cryptocurrency. Understanding the basics helps you read crypto news with confidence. Next, read our guide on how to read crypto charts, and follow us for daily market updates.
Disclaimer: This article is for information only and is not financial advice. Crypto is high risk. Do your own research before investing.
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