Bitcoin is the oldest and largest cryptocurrency by market value. Before buying, it helps to understand what actually determines its price, how it's stored, and the main risks.

Bitcoin was launched in 2009 as the first cryptocurrency, and it remains the largest by market capitalization. Unlike most other coins, its supply is capped at 21 million, which is a core part of why it's often compared to a scarce commodity rather than a currency in daily use.

What moves the Bitcoin price?

Bitcoin's price is driven mainly by supply and demand on exchanges, institutional buying and selling, regulatory news, and macroeconomic factors such as interest rates. There is no central authority setting its value, which is also why it can move sharply in short periods, often more than traditional assets.

How is Bitcoin stored?

After buying, Bitcoin can stay on the exchange or move to a personal wallet. An exchange wallet is convenient but means the exchange controls the private keys, a personal hardware or software wallet gives you full control, but also full responsibility: losing your private key or recovery phrase means losing access permanently, with no customer support to recover it.

Main risks to understand

• Price volatility: double-digit percentage swings in a single day are not unusual.
• Custody risk: funds held on an exchange are exposed if that exchange is hacked or becomes insolvent.
• Irreversible transactions: a Bitcoin transaction sent to the wrong address generally cannot be reversed.

Is Bitcoin the same as other cryptocurrencies?

No. Bitcoin is a simpler, more conservative network focused on being a store of value, while many other cryptocurrencies add smart contracts or other features. This is why Bitcoin is often treated as a separate asset class from the rest of the crypto market, rather than just another coin among thousands.