CoinMarketLabBitcoin is a digital money network with no central operator. Anyone can send value to anyone, and the rules are enforced by software that thousands of computers run.
How it works
- A public ledger (the blockchain) records every transaction.
- Miners compete to add new blocks and are paid in new bitcoin plus fees.
- The supply is capped at 21 million coins, and the issuance rate halves roughly every four years.
- You control coins with a private key. Whoever has the key controls the coins.
What moves the price
- Liquidity and interest rates in the wider economy.
- Demand from investors, including funds and companies.
- Regulatory news and market structure changes.
- Leverage in the derivatives market, which can cause sharp moves.
Getting started safely
- Start with a small amount you can afford to lose.
- Use a reputable exchange and enable two-factor authentication.
- Learn self-custody before moving large amounts off an exchange.
- Beware of guaranteed-return promises and giveaways.
Not financial advice.