Bitcoin for beginners

What is Bitcoin?

Bitcoin is digital money that nobody is in charge of. No bank or company sets the rules. Thousands of computers around the world work together to keep track of who owns how much bitcoin. That record is called the blockchain.

You can send bitcoin straight to someone else, at any time of day, without a bank in between. There will never be more than 21 million bitcoin. That limit is written into the rules of the network.

The price of bitcoin can rise and fall sharply in a short time. You can lose some or all of your money.

What is a halving?

New bitcoin is created when computers, called miners, bundle transactions into a block. For each block they receive a reward in bitcoin. Roughly every four years, after 210,000 blocks, that reward is cut in half. That is called a halving.

Since April 2024 the reward has been 3.125 bitcoin per block. At block 1,050,000 it drops to 1.5625. If a block is found every 10 minutes, that is expected around April 2028. On the halving countdown you can see live how long it will take.

A halving says nothing certain about the price. It only makes new bitcoin arrive more slowly.

What is DCA?

DCA stands for dollar-cost averaging. You buy a fixed amount at regular times, for example $50 every month, whatever the price is.

When the price is high you buy less bitcoin, and when it is low you buy more. So you do not have to guess the right moment. It does not guarantee a profit and does not protect you from a loss.

With the DCA calculator you can see what buying a fixed amount regularly would have done in the past.

What are sats?

A bitcoin can be divided. The smallest unit is called a satoshi, or sat for short. One bitcoin is 100,000,000 sats. The name comes from Satoshi Nakamoto, the creator of Bitcoin.

So you do not have to buy a whole bitcoin. You can buy with a small amount and get a number of sats. With the sats converter you can see how many sats 1 dollar or 1 euro is.

How do I buy safely?

This is a neutral explanation. It contains no advice and no recommended providers. These are things people often look at to limit risk:

• Only money you can afford to lose. The price can fall hard and you can lose what you put in.
• An authorised provider. In the EU, companies that offer crypto services need authorisation under the MiCA rules. Check the public register of the financial regulator in your country to see whether the provider you are considering is listed.
• The costs. Purchase fees, the gap between the buying and selling price and withdrawal fees differ per provider. Compare them before you buy.
• Storage. You can let a provider keep your bitcoin or keep it yourself in your own wallet. With your own wallet you hold the keys and you are responsible. Both ways have pros and cons.
• A strong account. Use a unique password and two-step verification.
• Your recovery phrase. These are the 12 or 24 words of your own wallet. Keep them secret and store them offline. A serious company never asks for them, not even through “support”.
• Scams. Promises of guaranteed returns, “double your bitcoin” and messages from strangers about investing are almost always scams.
• Taxes. Gains from selling bitcoin can be taxable, depending on where you live. Check the rules of your tax authority.

Frequently asked questions

Is Bitcoin legal?

In most countries you can buy, own and sell bitcoin, but the rules differ from country to country. Check the rules where you live. In the EU, companies that offer crypto services need authorisation.

How many bitcoin are there?

There will never be more than 21 million. By the end of 2026 about 20.1 million have been created. The last one is expected around the year 2140.

Can I buy part of a bitcoin?

Yes. One bitcoin is 100 million sats, so you can also buy with a small amount.

What does a bitcoin cost now?

The live price is at the top of the halving countdown. You can see it there in dollars or euros.

Does a halving make the price go up?

Nobody knows. In the past the price sometimes rose and sometimes fell after a halving. That says nothing certain about the future.

Is this site financial advice?

No. This site only gives information and calculates with past prices. You make your own decisions about your money. Ask an independent adviser if you need to.

Not financial advice. This guide is for information only. Past performance does not guarantee future results.