₿itcoin FAQ

Bitcoin is a digital currency that runs on a decentralized network of computers worldwide. Unlike traditional money issued by central banks, Bitcoin has a fixed supply of 21 million coins, no government can print more, and it can be sent peer-to-peer without intermediaries.

It was created in 2009 by the pseudonymous Satoshi Nakamoto, whose identity remains unknown. Bitcoin is often described as "digital gold" — scarce, durable, and politically neutral.

About 19.7 million BTC are in circulation as of 2026. The maximum supply is hard-coded at 21 million, expected to be fully mined around 2140. After that, miners earn only transaction fees.

An estimated 3-4 million BTC are likely lost forever — forgotten passwords, dead hard drives, lost seed phrases, deceased owners. Effective circulating supply is therefore much lower than 21 million.

Every 210,000 blocks (~4 years), the reward miners earn for adding a new block is cut in half. Past halvings:

• 2009: 50 BTC per block
• 2012: 25 BTC
• 2016: 12.5 BTC
• 2020: 6.25 BTC
• April 2024: 3.125 BTC (current)
• ~2028: 1.5625 BTC (next)

Halvings reinforce Bitcoin's scarcity and have historically been followed by major bull markets 12-18 months later. See our halving entry.

Bitcoin: launched 2009, fully decentralized, fixed 21M supply, no founder controls supply, secured by Proof-of-Work. Considered digital money / store-of-value.

Altcoins (Ethereum, Solana, etc.): usually pre-mined or VC-backed, often inflationary supply, controlled by foundations or developers, frequently switch consensus mechanisms.

Ethereum is the most established altcoin (smart contracts platform). Most altcoins, however, never deliver lasting value — over 10,000 cryptocurrencies have died since 2017. Bitcoin remains structurally distinct from the rest of the crypto space.

Probably not entirely. Most economists see Bitcoin as digital gold or a savings asset rather than daily currency. Its price volatility makes it impractical for everyday pricing.

However, Bitcoin complements fiat: a hedge against inflation, a savings tool, and a censorship-resistant payment rail (especially via Lightning Network). El Salvador and the Central African Republic recognize Bitcoin as legal tender.

A 9-page document published by Satoshi Nakamoto on October 31, 2008, titled "Bitcoin: A Peer-to-Peer Electronic Cash System." It describes the design of a decentralized digital currency without trusted third parties.

It's required reading for anyone serious about Bitcoin: bitcoin.org/bitcoin.pdf. Despite being published in 2008, every concept it introduces still applies today — a remarkable feat of design.

1. Choose a MiCA-licensed exchange — Coinbase, Bitpanda, Binance, or Anycoin Direct
2. Register and complete KYC verification (ID upload + selfie)
3. Deposit EUR via SEPA bank transfer (cheapest) or card (instant)
4. Place a buy order for BTC — market order is simplest
5. Withdraw your Bitcoin to a self-custody wallet for safekeeping

First-time setup takes 30-60 minutes. After verification, subsequent purchases are usually instant. See our step-by-step guide.

Most European exchanges allow purchases starting from €10. Some go as low as €1 (Bitpanda). Bitcoin is divisible to 8 decimal places — 1 BTC = 100 million satoshis, so you don't need to buy a whole coin.

€10 today buys roughly 10,000 sats depending on price. Many beginners start with €50-100 to get familiar with the process before larger purchases.

It depends on your needs:

• Coinbase — most regulated, easy UX, slightly higher fees
• Bitpanda — Austrian, EU-focused, good for beginners
• Binance — lowest fees (0.1%), largest liquidity
• Anycoin Direct — Czech-friendly, simple, regional banking
• Bison App — German, BaFin-regulated
• Young Platform — Italian, OAM-licensed
• Zonda — Polish, BLIK-supported

All listed are MiCA-licensed. See full exchange comparison.

Yes, most exchanges accept Visa and Mastercard. However, card fees are typically 3-5%, much higher than the 0-1% for SEPA bank transfers. Some banks also block crypto purchases — check with yours first.

For amounts above €100, bank transfer saves significant money. For urgent small purchases or convenience, cards are fine. Avoid using credit (debt-based) cards to buy volatile assets.

Three layers of fees:

1. Deposit fee: SEPA 0-1%, card 3-5%, PayPal 2-4%
2. Trading fee: Binance ~0.1%, Coinbase ~1.5%, Anycoin 0.5-1.5%
3. Spread: 0.5-2% built into the price (especially on retail platforms)

Total cost can range from 0.2% (Binance + SEPA) to 7% (Coinbase + card). Always check the actual EUR-to-BTC ratio you receive, not just the headline fee.

First time: 30 minutes to 24 hours, depending on KYC review and deposit method.

• Card: instant
• SEPA Instant: seconds to minutes
• Regular SEPA: 1-2 business days
• BTC withdrawal to wallet: 10-60 minutes after exchange processes it

Subsequent purchases on a verified account are usually instant.

Limited options remain in the EU under MiCA:

• Peer-to-peer: Bisq, RoboSats — fully P2P, no platform custody
• Bitcoin ATMs: with daily limits, often higher fees (5-10%)
• Limited DCA: Relai (Switzerland) up to certain amounts
• Mining: only KYC-free entry, but unprofitable for individuals

Most major exchanges now require KYC. P2P is still the most reliable no-KYC route for moderate amounts.

DCA = buying a fixed amount on a regular schedule (e.g., €100 every Friday) regardless of price. It smooths volatility, removes emotional timing decisions, and historically outperforms most active trading attempts.

Ideal for long-term Bitcoin accumulation. Most exchanges support automatic DCA setups (recurring buys). Some specialized services (Relai, Pocket Bitcoin) make DCA the entire product.

Nobody can time the market reliably. Historical data consistently shows DCA outperforms most timing strategies. If you believe Bitcoin has long-term value, start small with regular purchases.

If you're unsure, allocate a small percentage (1-5% of net worth) and observe over 1-2 halving cycles (4-8 years). Only invest what you can afford to lose.

Yes, Bitcoin is fully legal in all 27 EU member states. As of December 2024, the MiCA regulation requires all crypto exchanges to obtain a CASP license, protect client assets, and comply with AML rules.

This makes the EU one of the most regulated and safe environments for buying Bitcoin globally. Switzerland, UK, and Norway have their own (similar) frameworks.

Markets in Crypto-Assets — the EU's comprehensive cryptocurrency regulation, fully active since December 2024. MiCA standardizes rules across all 27 EU members so a CASP license in any one country is valid in all.

Key provisions: licensing requirements for exchanges and custodians, mandatory client asset segregation, AML/KYC enforcement, stablecoin reserve rules, and consumer protection (whitepapers, risk disclosures). Bitcoin itself is treated as an "other crypto-asset."

Yes, in most EU countries. Rules vary significantly:

• 🇩🇪 Germany: Tax-free after 1 year of holding
• 🇨🇿 Czech Republic: 15% on profits, exempt under 100k CZK or after 3 years
• 🇮🇹 Italy: 26% capital gains
• 🇵🇱 Poland: 19% flat
• 🇭🇺 Hungary: 15%
• 🇫🇷 France: 30% flat or progressive (your choice)
• 🇸🇰 Slovakia: 19-25% depending on amount and holding
• 🇵🇹 Portugal: 28% on short-term, 0% after 1 year (for personal investors)

Always consult a local tax advisor — these are general guidelines and rules change yearly.

Germany treats Bitcoin as a private asset. If you hold BTC for more than 12 months, gains from the sale are completely tax-free (§23 EStG).

If you sell within 12 months, gains under €600/year are exempt; above that, your full income tax rate applies (up to 45%). Staking and lending may extend the holding period to 10 years (this rule is occasionally debated). FIFO accounting applies.

Self-custodied Bitcoin (you control the keys) cannot be confiscated unless someone physically obtains your seed phrase or you voluntarily transfer it.

Custodial Bitcoin (on exchanges, custody services) can be frozen by court orders, sanctions lists, or company decisions. This is the central reason for self-custody — and why "not your keys, not your coins" is a foundational principle.

For long-term holdings, use a hardware wallet (Trezor, Ledger, Coldcard) which keeps private keys offline.

For small amounts you spend regularly, a mobile wallet (BlueWallet, Phoenix, Muun) is fine. Never leave significant Bitcoin on exchanges — they can freeze accounts, get hacked, or go bankrupt.

The principle: "Not your keys, not your coins." If you don't hold the private keys, you don't truly own the Bitcoin.

A list of 12 or 24 ordinary English words (BIP-39) that backs up your entire wallet. The seed deterministically derives every private key in your wallet.

Anyone who reads your seed phrase owns your Bitcoin. Write it on paper or stamp it into steel — never digital, never photograph, never share. If you lose your seed phrase AND your wallet, your Bitcoin is gone forever.

Best practice: keep at least 2 separate physical copies in different secure locations (home safe, bank safety deposit box, trusted family member).

Hot wallets are connected to the internet — mobile apps, desktop apps, exchange wallets. Convenient for active spending but exposed to malware and phishing.

Cold wallets keep private keys completely offline — hardware wallets, paper backups, air-gapped computers. More secure but slightly less convenient.

Best practice: hot wallet for spending money (€100-500), cold wallet for savings (everything above).

If you hold more than ~€500-1,000 in Bitcoin, yes. A hardware wallet (~€60-200) signs transactions internally without exposing private keys, even on a compromised computer.

The cost is small insurance for your savings. Top brands: Trezor (open-source, Czech), Ledger (French), Coldcard (Bitcoin-only, security-focused), BitBox (Swiss).

Always buy directly from the manufacturer — never Amazon/eBay — to avoid tampered devices.

By category:

• Mobile (free): BlueWallet (Bitcoin-only, Lightning-ready) or Muun (auto-Lightning)
• Desktop (free): Sparrow Wallet (powerful, Bitcoin-only)
• Hardware (~€60): Trezor Safe 3 or Ledger Nano S Plus

Avoid multi-coin wallets and exchange-branded wallets when starting out. Bitcoin-only wallets reduce attack surface and complexity.

Multi-signature wallets require multiple keys to authorize a transaction — e.g., 2-of-3 means any 2 of 3 keys must agree.

Benefits: a thief needs multiple devices, you can recover from one lost key, and you can split keys across locations or trusted parties.

Tools: Sparrow Wallet (free, DIY), Casa (paid, managed), Unchained Capital (institutional). Recommended for holdings over €10,000.

You can fully recover your Bitcoin from your seed phrase. Buy a new hardware wallet (any compatible BIP-39 brand), enter your 12 or 24 words during setup, and the same wallet is restored.

The hardware wallet is just a physical interface — the seed phrase is the actual backup. This is why protecting the seed phrase matters more than protecting the device.

Iron rules:

• Never share your seed phrase — not with "support," not with anyone
• Never click links in unsolicited DMs/emails
• Never invest in "guaranteed returns" — Bitcoin guarantees nothing
• Verify domains carefully (homograph attacks: trezor.io vs trezór.io)
• Buy hardware wallets only from official sources
• Ignore "doubling" offers — always scams
• Be suspicious of celebrity endorsements
• Use unique passwords + 2FA on every exchange

If something feels too good to be true, it is.

The Bitcoin protocol itself has never been hacked in 17 years of operation. What gets hacked:

• Exchanges: Mt. Gox (2014), Bitfinex (2016), FTX (2022) — custodial risk
• Individual users: phishing, malware, SIM swaps, stolen seed phrases
• Bridges/sidechains: wrapped BTC implementations on other chains

Self-custody, hardware wallets, 2FA, and verified software protect you from nearly all attack vectors.

For inheritance purposes, yes — at minimum, document the existence of your Bitcoin and how to access it (without exposing the seed phrase publicly).

Options:

• Sealed letter with seed phrase location and instructions
• Multisig with trusted family co-signers
• Services like Casa Inheritance or Unchained
• Notarized self-custody plan with executor

Without a plan, your Bitcoin may be lost permanently when you die.

Step by step:

1. You sign a transaction with your private key
2. Your wallet broadcasts it to the Bitcoin network
3. The transaction enters the mempool (waiting room)
4. Miners pick up transactions (highest fees first) and include them in the next block
5. After ~10 minutes you have 1 confirmation
6. After 6 confirmations (~60 minutes), the transaction is considered final

Each transaction has a unique 64-character TXID you can look up on any block explorer.

When the mempool fills up (lots of pending transactions), miners pick the highest-fee ones first. Fees rise during high demand — bull markets, NFT/ordinals booms, mass sell-offs.

Solutions:

• Wait for off-peak hours (weekends, late evening UTC)
• Use SegWit (bc1q) or Taproot (bc1p) addresses — 30-40% smaller
• Batch multiple payments into one transaction
• Use Lightning Network for small/frequent payments

Check current fees at mempool.space.

RBF lets you replace an unconfirmed Bitcoin transaction with a higher-fee version to speed up confirmation. Most modern wallets enable RBF by default.

The replacement spends the same inputs and pays a higher fee. Useful when a transaction is stuck in the mempool due to low fees.

Unspent Transaction Output. Bitcoin doesn't track "balances" like a bank — instead, your wallet contains UTXOs (chunks of BTC received from past transactions).

When you spend, your wallet selects whole UTXOs as inputs and creates new ones as outputs. Privacy-aware users practice "UTXO management" to avoid linking unrelated coin lots.

SegWit (2017) — increased Bitcoin's effective block capacity and fixed transaction malleability. SegWit addresses start with bc1q.

Taproot (2021) — added Schnorr signatures, improving privacy and scripting. Taproot addresses start with bc1p.

Modern wallets support both — they reduce fees by 30-40% over Legacy 1... addresses. Always prefer SegWit or Taproot when generating new addresses.

A 256-bit secret number that authorizes spending of Bitcoin from a corresponding address. Whoever holds the private key controls the funds.

Modern wallets derive all your private keys from a single seed phrase via BIP-32/39/44 derivation paths. Never share private keys or seed phrases with anyone — including "support agents" (always scams).

A computer running Bitcoin Core software that downloads, validates, and stores the entire blockchain (~600 GB in 2026). Full nodes enforce consensus rules — they verify every transaction and block independently.

Anyone can run one on a Raspberry Pi (~€100). Pre-built node solutions: Umbrel, Start9 Embassy, RaspiBlitz. Running your own node improves privacy (no third-party queries) and supports network decentralization.

The total computational power securing the Bitcoin network — currently ~700 Exahashes per second (700 EH/s) in 2026.

Higher hash rate = harder to attack. A 51% attack would require billions in mining hardware and electricity, plus would destroy the value of any Bitcoin gained. Bitcoin is the most secure digital network ever built by orders of magnitude.

A web tool to inspect any address, transaction, or block on the Bitcoin blockchain. Popular ones:

• mempool.space — best UI, real-time fees
• blockstream.info — clean, privacy-friendly
• blockchain.com — most well-known, less private

Useful for tracking your transactions, checking confirmations, viewing addresses, and monitoring network fees.

A Layer 2 scaling solution on top of Bitcoin enabling near-instant, low-fee payments through off-chain payment channels.

Used for tipping, micropayments, retail purchases, fast remittances, and streaming sats. Apps: Phoenix, Wallet of Satoshi, Muun, Strike, Breez. In 2026, Lightning processes millions of payments daily with capacity exceeding 5,000 BTC across 70,000+ channels.

An Exchange-Traded Fund holding actual BTC, traded on stock exchanges as ordinary shares. Spot Bitcoin ETFs were approved in the US in January 2024:

• BlackRock IBIT
• Fidelity FBTC
• ARK 21Shares ARKB
• Bitwise BITB

Convenient for retirement accounts and brokers, but you don't control private keys — you're trusting the custodian. Direct Bitcoin gives true ownership; ETFs do not.

For individuals in Europe, generally no. High electricity costs make modern ASICs unprofitable except in unusual cases (free heat, surplus solar, cheap nightly rates).

Industrial miners with cheap electricity (Texas, Iceland, Paraguay, El Salvador volcanic) dominate. Solo mining a block has effectively a lottery probability.

Alternatives: heat your home with a small ASIC (Bitaxe, S9 Hydro), join a mining pool, or buy hash rate via cloud mining (mostly scams — be careful).

Bitcoin's Proof-of-Work consensus requires miners to expend computational energy. This is a feature, not a bug — it makes 51% attacks economically irrational.

Reality check:

• ~60%+ of mining uses renewable, stranded, or otherwise wasted energy
• Total Bitcoin energy use ≈ 0.5% of global electricity
• Less than home tumble dryers worldwide (~1%)
• Mining flares stranded gas, stabilizes grids, and incentivizes renewable buildout

A privacy technique where multiple Bitcoin users combine their transactions into one large transaction, breaking the on-chain link between sender and receiver.

Implementations: Wasabi (Whirlpool), JoinMarket, Mercury Wallet. Note: under MiCA, some EU exchanges may flag Coinjoin'd UTXOs and refuse deposits — check your exchange policy.

Bitcoin is pseudonymous, not anonymous — addresses aren't tied to your name unless you reveal them, but on-chain analysis can de-anonymize through patterns.

Privacy techniques:

• Never reuse addresses (always use a new one)
• Use Coinjoin (Wasabi, Samourai)
• Avoid linking KYC purchases to long-term wallets
• Run your own node (don't query third-party servers)
• Use Tor with your wallet
• Consider Lightning Network for routed payments

Under MiCA, EU exchanges report suspicious activity to authorities.

They serve different purposes:

• Stablecoins (USDT, USDC): stable value pegged to fiat. Useful for trading, remittances, short-term parking.
• Bitcoin: scarce asset with growth potential and immutable monetary policy.

Most stablecoins are centrally issued and can be frozen by the issuer (Tether has frozen many addresses). Bitcoin cannot be frozen by anyone. Use stablecoins for stability, Bitcoin for savings.

No. A Ponzi scheme requires a central operator paying old investors with new investor money under false promises.

Bitcoin is decentralized, has no operator, makes no promises of returns, and runs on transparent open-source code that anyone can audit. Critics often confuse volatility or speculation with structural fraud — they're different things.

Less than 0.5% of Bitcoin transactions are criminal-related (Chainalysis 2024) — far less than fiat cash, where estimates range 2-5%.

Because the blockchain is fully transparent and traceable, Bitcoin is actually one of the worst tools for serious crime. Most illicit activity uses cash, stablecoins, or privacy coins.

Yes — Bitcoin is volatile and risky. Past drawdowns:

• 2014: -85%
• 2018: -84%
• 2022: -77%

Only invest what you can afford to lose, and never invest borrowed money. DCA reduces timing risk. Long-term (4+ year) holders have always been profitable historically — but past performance doesn't guarantee future results.

It's almost certainly lost. Bitcoin transactions are irreversible.

If the address belongs to nobody (typo, dead wallet), the BTC is permanently locked. If it belongs to someone else, you'd have to convince them to return it — usually impossible.

Always: copy-paste addresses, verify the first/last 6 characters, and send a small test amount first for new addresses (€5 test, then send the rest).

Leaving Bitcoin on exchanges "because it's easier." This violates "Not your keys, not your coins" and exposes you to exchange hacks, freezes, and bankruptcy (Mt. Gox 2014, Celsius 2022, FTX 2022).

Other common mistakes:

• Photographing the seed phrase (digital = hackable)
• Using exchange-branded multi-coin wallets
• Falling for "guaranteed return" investment schemes
• Panic-selling at lows during volatility
• FOMO-buying at all-time highs
• Sending BTC across wrong networks (BSC, ERC-20 wrappers)

Yes. Bitcoin is permissionless and global — anyone with a wallet can send or receive BTC across borders without bank approval.

On-chain transactions take ~10 minutes. Lightning Network transactions are near-instant. There are no geographic restrictions and no sanctions enforced by the protocol itself — Bitcoin is politically neutral by design.

Step by step:

1. Generate a receive address in your self-custody wallet
2. Copy it carefully and double-check the first/last 6 characters
3. Paste into the exchange's withdrawal form
4. Choose the BTC network (not BEP20, ERC-20, or other wrappers)
5. Confirm the amount and fee
6. Complete 2FA
7. Wait 10-60 minutes for the exchange to process and the network to confirm

Always send a small test transaction first (~€5) for large amounts. Then send the rest.