Introduction to bitcoin: explaining the complex in simple terms

05.04.2025

Bitcoin is the first and most well-known cryptocurrency in the world, created in 2009 by a person (or group of people) under the pseudonym Satoshi Nakamoto. Bitcoin enables direct digital transfers between individuals without banks, intermediaries, or government institutions. How Does Bitcoin Work?Bitcoin is based on blockchain — a distributed ledger that stores the entire history of transactions. All transfers are secured with cryptography and verified by network participants (miners or validators). In the Bitcoin system:there is no central authority;the number of coins is limited (maximum — 21 million BTC);transactions are irreversible and tamper-proof. How to Use Bitcoin?Create a crypto walletThis can be a mobile app, web wallet, or hardware device. Popular options: Trust Wallet, Binance, Ledger, MetaMask (with BTC support), Electrum. Buy BitcoinYou can purchase BTC on cryptocurrency exchanges (e.g., Binance, Bybit, Coinbase) or via P2P platforms. In some countries, exchange services and Bitcoin ATMs are also available. Store Bitcoin securelyIt's not recommended to keep large amounts on exchanges. Use "cold storage" (hardware wallets) or reliable wallets with backup access. Make transfers and paymentsYou can send BTC to other users via their wallet address, pay for goods and services (an increasing number of businesses accept crypto), or use it for investing. What Can Bitcoin Be Used For?Storing value (digital gold)International transfers without banksOnline purchases and servicesTrading and investingParticipating in blockchain projects