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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.

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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.
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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.

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How it works

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Why sign up

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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

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 →
When is the next halving?

See the block reward and blocks left.

Bitcoin halving calculator →
What is cryptocurrency?

The basics of digital currencies.

What is cryptocurrency? →
What is a blockchain?

The shared ledger behind Bitcoin.

What is a blockchain? →
What is a seed phrase?

The recovery words for a crypto wallet.

What is a seed phrase? →

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.