Bitcoin (BTC) is a digital currency created in 2009. It operates without a central bank or single administrator. Transactions are verified by network nodes through cryptography and recorded in a public ledger called a blockchain, which is shared across all computers on the network.
Bitcoin can be sent directly between users globally without a financial intermediary. New bitcoins enter circulation through a process called mining, where computers solve complex problems. Its supply is limited to 21 million coins, a feature embedded in its code since its inception.
Most people buy Bitcoin on a major exchange. Binance has the lowest fees and the widest selection — here's the quick version:
Bitcoin is used for online purchases, as a method of transferring money, and as a digital store of value. Its primary use case is peer-to-peer electronic cash, allowing secure payments across borders.
You can acquire Bitcoin by purchasing it on a cryptocurrency exchange using traditional currency, or by accepting it as payment for goods or services. The other method is mining, which requires significant computing resources.
Bitcoin is often described as pseudonymous, not fully anonymous. Transactions are public on the blockchain, but they are linked to a cryptographic address rather than directly to personal information. However, advanced analysis can sometimes trace transactions to identities.