Bitcoin for beginners

What is Bitcoin?

Bitcoin is digital money that runs on a public network with no bank or company in charge. It launched in 2009 after a whitepaper by the pseudonymous Satoshi Nakamoto. There will only ever be 21 million bitcoin. Each bitcoin splits into 100 million units called sats, so you can own a small amount.

Every transaction is recorded on a public ledger called the blockchain. A new block is added roughly every 10 minutes by miners, who use computing power to secure the network and earn new bitcoin plus fees.

Buying safely in the UK

• Use a platform registered with the FCA for crypto. You can check the firm on the FCA Register before signing up.
• Know that crypto is mostly unregulated and you are unlikely to get FSCS or Financial Ombudsman protection if things go wrong.
• Turn on two-factor authentication with an app, not SMS where you can.
• Start small and send a test withdrawal to your own wallet.
• Keep records. Gains on crypto can be subject to Capital Gains Tax in the UK.

Avoiding scams

• Nobody genuine will ever ask for your seed phrase. Anyone who does is a scammer.
• Guaranteed returns, "doubling" offers and giveaways are scams.
• Be wary of people you meet online who steer you to an investment app.
• Fake support accounts reply on X and Telegram. Real support will not DM you first.
• If you are scammed, report it to Action Fraud.

Read the source: the Bitcoin whitepaper, then pick up one of the best Bitcoin books.

Next: learn to hold your own keys, or browse the glossary.

Not financial advice. This page is general education only. Bitcoin prices can swing hard. Never put in more than you can afford to lose, and do your own research.