You want to know what is Bitcoin but are you struggling? This guide is for you to learn what is necessary.

So let's go straight to the article.

What is Bitcoin and how does it work?

The Bitcoin is an online financial network, used for shopping among its users. It is very similar to the ones to date"conventionally» payment networks such as credit cards or Paypal.

But Bitcoin differs from these and other payment methods for two very important reasons: First, it is decentralized. The Visa credit card networks and Paypal are owned by for-profit companies, and are run to benefit shareholders.

The Bitcoin Network it belongs to no one and is not controlled by anyone. It has a peer-to-peer structure, with hundreds of computers working together to process Bitcoin transactions. Its decentralized architecture means it is the world's first completely open financial network.

What are Cryptocurrencies? Positives and negatives

To create a new financial service in the conventional US banking system, one has to work with an existing bank and comply with a variety of complex rules. The Bitcoin network does not have such restrictions. People do not need anyone's permission or help to set up new Bitcoin-based financial services.

Second, Bitcoin it is unique because it has its own currencya. Transactions via Paypal or Visa cards are made in conventional currencies such as US dollars. The Bitcoin network, however, transacts in a new currency, also called Bitcoin.

Who created Bitcoin?

Nobody knows for sure. The coin was created by someone who says it is called “Satoshi Nakamoto", without giving more information about his identity. He has collaborated with other proponents of the Bitcoin concept through online forums, but the members of this community have never met in person.

In 2010 he slowly began to "reduce" his participation in the development of the currency and the last known communication he had was in 2011.

If he ever shows up, he will be a very rich man. He owns hundreds of thousands of Bitcoins and at today's prices, that means he is a… multimillionaire!

Before leaving, Nakamoto passed the baton to Gavin Andressen, who is now considered the head of the project.

Where do bitcoins come from?

In a conventional financial system, new money is created by a central bank. The Bitcoin Network it has no central bank thus, the system needs an alternative mechanism for introducing currency into circulation.

The designers of Bitcoin solved this problem in a clever way. Hundreds of computers scattered across the Internet work together to process Bitcoin transactions. These computers are calledminers" and the process of clearing Bitcoin transactions is "mining." It's so named because about every 10 minutes, a "miner" wins a computational race and takes home a prize of 25 bitcoins, worth about $12.500.

This reward provides a strong incentive for more and more people to join the Bitcoin clearing transaction process, helping the currency remain decentralized.
This award is halved every four years. If one does the mathematical calculations one will see that there will be no more than 21 million bitcoins in circulation.

How Many Bitcoins Are There?

The total offer of Bitcoin is 21 million BTCThis is the maximum amount that can exist, according to the Bitcoin protocol code.

To date, approximately 19,6 million BTC have been mined, meaning there are less than 1,4 million BTC left to mine.

How Can You Get Bitcoins?

The best option for a beginner is to buy digital currency through ιon exchange pages, which allow you to buy Bitcoins or other cryptocurrencies with local currencies.

For example, an exchange is a cryptocurrency bank.

Now will you tell me how we can buy it?

The process is very simple.

• You will register on the Binance or Bybit exchange, which are among the best in the world.
• You will then complete a quick certification (KYC) that will not take you more than 5 minutes.
• Finally, you will make a deposit with SEPA or with your Card.

If you don't know how to do it, I have written a detailed guide for it. how to buy Bitcoin.

ΤDo You Trade Bitcoins After You Obtain Them?

After you have successfully completed the purchase and have Bitcoin, from now on you should be very careful.

Initially, when you buy Bitcoins, they are stored in "wallets", inside the exchange.

There you have the risk that if the exchange gets hacked or goes down, there is a huge possibility that you will lose the Bitcoins you have.

What you need to do is to buy a cold wallet like Tangem or Ledger and send the Bitcoins to these wallets.

There is also the free option to download a hot wallet for Bitcoin, but there is a big problem if your PC has a virus, they can find the passwords or 24 words and you can lose the Bitcoins you have.

That's why I personally choose the cold wallet option.

However, there is a big risk with cold wallets.

If you lose the 24 key phrases that the wallet will give you, you lose everything you have in your wallet.

Bitcoin Traps & Scams

We have reached the point where I would like to mention some pitfalls that exist.

Bitcoin can change in value by 10%-20% in a few hours. This can lead to:
❌ Panic and selling at a low price.
❌ Poor risk management and large losses.

🔹 How to protect yourself:

✅ Only invest what you can afford to lose.
✅ Don't buy out of fear or greed.

There are also several scams that want to steal your Bitcoins.

Bitcoins cannot be recovered if they fall into the wrong hands, so you need to be careful.

Below are the most common scams and how to protect yourself.

Phishing Attacks (Fake Emails & Websites)

This scam aims to steal your wallet details through:
✅ Fake emails that look official (e.g. from Binance, Ledger, Coinbase).
✅ Websites that mimic real crypto exchanges.
✅ Fake ads that lead to malicious pages.

🔹 How to protect yourself:

• Always check the site address.
• Do not open links from unknown emails.
• Use it hardware wallets for storing BTC.

Fake Giveaways & Social Media Scams

Alleged celebrities (e.g. Elon Musk, Vitalik Buterin) or big companies promise that if you send BTC, they will refund you twice as much money.

🔹 How to protect yourself:

• Nobody gives away free Bitcoin.
• Always verify official sources.
• Report and block fake accounts.

Fake Crypto Exchanges & Wallets

Fake exchanges promise low commissions and fast transactions, but in reality they steal your money.

🔹 How to protect yourself:

• Use only well-known exchanges (e.g. Binance, Kraken, Coinbase).
• Check if the exchange has regulatory permits.
• Do not download wallets from unknown sources.

Malware & Keyloggers (Viruses That Steal Bitcoin)

Malware can record your login details or replace your wallet address when you make transactions.

🔹 How to protect yourself:

• Do not download files from unknown sources.
• Use antivirus and updated operating system.
• Double check wallet addresses before sending BTC

Crypto scammers are evolving, but with caution and knowledge you can protect yourself. Don't invest if you don't fully understand the risks and pitfalls!

Can bitcoins replace conventional money?

It is a possibility although people want to use the currency that most people use, and right now for example in the US, this is the dollar.

But we cannot ignore that Bitcoin has revolutionized the financial system, but the question of whether it can replace traditional money remains open.

✅ Why Bitcoin could replace money

• Decentralized Nature.
• It is not controlled by governments or banks.
• It is not subject to inflation.
• Fast and International Transactions.
• Transparency.
• Digital Economy.

❌ Why Bitcoin Can't Replace Money (Yet)

• High Volatility.
• Limited Adoption.
• Regulatory Barriers.
• Transaction Speed ​​& Cost.

LIABILITY DISCLAIMER:

Cryptocurrency trading is VERY risky. Make sure you understand these risks if you are a beginner. The Information in the post is my OPINION and not financial advice. You are responsible for what you do with your money

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