What is Bitcoin? How the first cryptocurrency works
By SendPay Business · · 2 min read
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Bitcoin is a digital currency that runs without a central bank or company in charge. It was launched in 2009 by a person or group using the name Satoshi Nakamoto, and it was the first cryptocurrency.
How it works
Every Bitcoin payment is recorded on a public ledger called the blockchain, copied across thousands of computers. New blocks of transactions are added by miners, who use computing power to secure the network and are rewarded with new bitcoin and fees.
A fixed supply
There will only ever be 21 million bitcoin. The reward for mining halves roughly every four years, so new coins arrive more and more slowly. This built-in scarcity is a big part of why people are interested in it.
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Buying and storing it
- Most people buy bitcoin on a crypto exchange or app using pounds or another currency.
- It can be left with a custodian, or moved to a wallet the owner controls.
- A self-custody wallet is protected by a seed phrase that must be kept secret.
The risks
Bitcoin's price can rise and fall sharply, payments sent to the wrong address generally can't be reversed, and scams are common. In the UK, crypto isn't covered by the Financial Services Compensation Scheme.
Where SendPay fits
SendPay crypto exchange platforms let your customers buy, sell and hold crypto next to their cash under your own brand, and you set your own trading fee. Assets are held with regulated partners.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
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Questions people ask
How many satoshis are in a bitcoin?
100 million. Convert between them in the free tool.
Satoshi converter →What will my Bitcoin transaction cost?
Estimate its size and fee at any fee rate, free.
Bitcoin fee calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.