Crypto and derivatives · updated October 21, 2026
What is Bitcoin and how does it work
Bitcoin is a digital currency that works without a bank or a government: transactions are checked by a network of computers and written to a public blockchain. It was launched in 2009 by someone known as Satoshi Nakamoto. There will never be more than 21 million bitcoins.
How it works
New bitcoins are created as a reward for miners, who add new blocks to the record. The reward halves every 210,000 blocks, roughly once every four years (the halving). One bitcoin splits into 100 million units called satoshis, so you can buy a very small piece.
Worked example
You buy 0.01 BTC. You do not need a whole bitcoin.
The price of one whole bitcoin does not limit how much you can invest: you buy exactly the amount you want.
Worth knowing
Bitcoin has fallen more than 70% from its peak several times, and recovered afterwards. It is one of the most volatile assets an ordinary investor can buy.
When Bitcoin can fool you
Very high volatility: a 20% drop in a week is not unusual. No safety net: if you lose your private key or send coins to the wrong address, nobody can get them back for you. Scams: no honest person will "double" your bitcoins or ask for your private key.
Related terms
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Questions about Bitcoin
Why does Bitcoin have value?
Because people are willing to buy it and use it. It is scarce (21 million at most), nobody can print more, and it can be sent anywhere without a middleman. It makes no profit and pays no dividends, so its price comes only from supply and demand.
Can I buy Bitcoin without a crypto platform?
Yes, indirectly: through Bitcoin ETFs or other listed products (ETPs), bought in your normal brokerage account. You do not hold the coins yourself, but you also do not have to look after the keys.
What is a satoshi?
The smallest unit of bitcoin: one hundred millionth of a bitcoin.
These explanations are for information only. They are not a recommendation to buy or sell.
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