Bitcoin is the first and most well-known cryptocurrency. Think of it as digital money that isn't controlled by any government or bank—you can send it directly to anyone, anywhere, without a middleman.
Why It Matters
Bitcoin is the starting point for most people learning about crypto. Understanding Bitcoin helps you understand how all other cryptocurrencies work.
Example
Instead of sending $100 through Western Union (which takes days and charges fees), you can send $100 worth of Bitcoin to someone in another country in minutes—and they control it immediately, with no bank required.
How It Works (Simple)
- Bitcoin exists only digitally (no physical coins)
- Transactions are recorded on a public ledger called the blockchain
- You need a wallet to store and send Bitcoin
- Only 21 million Bitcoin will ever exist (limited supply)
Common Mistakes Beginners Make
- ❌ “I can't afford a whole Bitcoin” → You can buy fractions (0.001 BTC, etc.)
- ❌ “Bitcoin is anonymous” → It's pseudonymous (transactions are public)
- ❌ “Bitcoin is only for criminals” → It's used by millions of regular people
- ❌ “I can get my Bitcoin back if I lose my password” → No central authority to recover it
Related Terms
- Blockchain – The technology Bitcoin runs on
- Wallet – Where you store your Bitcoin
- Exchange – Where you buy Bitcoin