What is Bitcoin? Complete beginner’s guide 2025

Bitcoin (BTC) is a digital network that supports a virtual currency, also known as Bitcoin (or simply BTC), which belongs to a broader class of digital assets called cryptocurrency — digital money that can be stored, transferred and traded entirely online or over decentralized computer networks called blockchains. 

Over the years, Bitcoin has become one of the most popular ways to store and move digital funds securely and anonymously. Today, it’s easy to buy Bitcoin in Europe and most parts of the world and to use it as either a store of value, an investment asset or, in some cases, to purchase goods and services.

Launched in 2009, Bitcoin started as a niche project among developers and early enthusiasts. Since then, it’s developed into a global phenomenon followed by investors, institutions and retail traders alike. Despite its visibility, Bitcoin often remains shrouded in mystery for newcomers to cryptocurrency, with technical language and unfamiliar concepts creating a sense of confusion.

In this Bitcoin beginner’s guide, we present the essentials of the world’s oldest and most popular cryptocurrency in straightforward terms. The goal is to outline what Bitcoin is, how it functions and why it continues to matter more than sixteen years after its introduction. We’ll explain Bitcoin’s network mechanics, its origins, its core applications — and the main risks every crypto newbie needs to be aware of.

By the end of this article, you’ll have practical knowledge of the primary digital asset’s basics: who invented Bitcoin, how it works, how it differs from traditional money — and why it continues to attract attention worldwide.