What does bitcoin mean?

Bitcoin is the first cryptocurrency created in 2009, enables 3-7 times faster global payments than regular bank transactions. Users can make user-to-user transactions without a middleman like a bank. Satoshi Nakamoto is touted to be the creator of Bitcoin but has remained anonymous to date.

There is no central bank or government that controls bitcoin which can be used to trade for goods and services or be used as a commodity. Transactions between users are anonymous and are based on a blockchain that records and confirms the transactions.

Users need a digital wallets to store their bitcoins and the wallet holds the addresses from which the user is receiving or sending bitcoins to including a private key known only to them. Since their launch of Bitcoin, other cryptocurrencies have been born, and they are often referred to us as "altcoins," which are of different specifications and meant to serve different functions. Here is an in-depth understanding of what is the meaning of bitcoin. If you are looking to learn more, check Buy Bitcoin.

Understanding what does bitcoin mean


  • The bitcoin network has been set not to create more than 21 million bitcoins

  • The total bitcoins include the 17 million already mined and in circulation

  • After every 10 minutes, there are 6.25 bitcoins mined

  • The last bitcoin will be mined in year 2140, and no more can be issued after the last coin

  • Bitcoin is the godfather of cryptocurrencies since it is the forts virtual currency to be created

  • As a decentralized currency, there is no central bank that reigns control over bitcoin

  • User-to-user transactions are recorded in a shared ledger which also works to confirm the transactions with verification done through mi (computers)

  • The digital currency also has ATMs globally with the US having over 2000 bitcoin ATMs

  • Currently, there are over 23,000 bitcoin wallet addresses holding bitcoin worth more than one million

  • Bitcoin is based on an open-source, and anybody can download it

  • Transactions between users do not require intermediaries

Bitcoin (BTC)

Traditional Monetary System

In the traditional monetary system, there is a central authority that controls how the system operates. The government or the central bank has the responsibility of administration over a centralized currency. When sending or receiving cash, one requires payment providers like Transferwise or a bank to complete the transaction. Transfers take long because of the paperwork involved to confirm transactions, and it is hard to track money. Most importantly, the central bank can even print and issue additional currency into the system.

Operations of The Bitcoin Blockchain System

The bitcoin blockchain system is a decentralized currency where there is no central authority controlling what happens in the system. Transactions are confirmed by computers and recorded in distributed ledgers, and banks or financial institutions are not involved. The process of sending money is quicker, taking about a minute to one hour compared to the traditional money system, where it can take 3-7 days to confirm transactions.

Basically, with bitcoin, you are the bank, and the currency is capped at 21 million BTC; no more can be issued. To trade on bitcoin, you need to find a trusted crypto exchange, and sites such as BuyBitcoin24.com can help you with recommendations on trusted exchanges.

Check TOP 3 best and trusted exchanges to buy and trade with cryptocurrencies. 




  • Has more than five million registered users

  • Trading fees on the exchange range from 0.4% to 0.1%

  • Supported in more than 130 countries

  • Huobi exchange supports Over 120 cryptocurrencies

  • Processes around 500 million to 2 billion trades every day

  • Supports more than 27 fiat currencies that can be converted easily to crypto on OTC Huobi

  • The exchange  a native token, Huobi Token (HT), and traders who use HT to trade receive discounts on trading fees

  • The exchange has more than 12 million registered daily active users

  • Its trading fees are the lowest in the industry ranging from 0.1% to 0.2%

  • Users from over 130 countries can access the exchange

  • Offers a wide selection range of more than 190 cryptos

  • Binance processes between 10 billion and 12 billion trade per day

  • Allows credit and debit card use to purchase bitcoin

  • Binance has a native token (BNB) and users who use it for trading get 25% off in trading fees

  • Binance is the most trusted exchange in the world

  • Enjoys more than 2.2 million registered user

  • Trading fees on the platform range from 0.42% and 0.1%

  • Available in over 180 countries

  • Over 30 cryptocurrencies are supported on the exchange

  • Kraken processes on average between 100 million and 300 million trades every day

  • Kraken supports fiat deposits for traders that have completed KYC verification



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Binance crypto exchange was established by former OKEX Trading Platform CTO, Changpeng Zhao, in 2017. After just a year, the exchange had emerged as one of the biggest and trustworthy crypto exchanges in the world, processing large trade volumes. The exchange processes around 10-12 billion traded every day.

It supports trading of more than 180 different cryptos and boasts more than 12 million registered daily users and around 26 million visits per month. Its native token BNB has grown to about $15 from the ICO price of $0.1. The token's all-time high is $39.57, and for ICO investors, they have enjoyed impressive returns of more than 16,000%-39,000%.

  • Trustworthy exchange with more than 20 million users

  • Posts the most significant trading volumes per day of 10 billion to 12 billion

  • Holds more than 320,000 bitcoins of users

  • Offers low trading fees of 0.1%-0.2%

  • Traders using BNB enjoy 25% discount in trading fees

  • The exchange supports more than 180 cryptos

  • Users can buy bitcoin using credit/debit card and SEPA transfers

  • Traders can earn staking rewards for over 23 cryptos

  • OTC Binance portal supports execution of large volume block trades

  • SAFU funds act as guarantee to user's funds in case of hacking

  • Fiat deposits and withdrawals not supported

  • Was hacked and around 40 million worth of bitcoin lost but covered 100% damage from SAFU funds

  • Since it is a fast-growing startup, there is a likelihood of unwanted things happening


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Huobi was established in China in 2013 by former Oracle computer engineer Leon Li. In 2014 the exchange raised around $10 million from Sequoia Capital venture investment. Its native token, Huobi Token (HT), has grown to more than $4 from its ICO price of $1.52.

The exchange has established partner companies and subsidiaries in 12 other countries with more than 1,300 workers. Some of the countries where Huobi operates include Japan, the USA, Thailand, and Gibraltar, among others. On average, per day, the exchange processes 2-5 billion trades.

  • Supports over 235 different cryptos

  • Holds over 420,000 users’ bitcoin

  • Allows users to buy bitcoin using debit and credit cards

  • Has OTC Huobi

  • It is accessible by users from over 130 countries

  • Boast more than 5 million users

  • Processes daily traders or around 2-5 billion

  • Robust liquidity for several cryptos

  • Supports margin trading with 5X leverage and margin funding where users can loan out their cryptocurrencies and earn interest​

  • No earning of staking rewards


  • Huobi charges 8% fee on debit card purchase of bitcoin

  • Cryptocurrency purchase via wire transfer not supported


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Kraken is a US-based exchange platform that is more than just a cryptocurrency exchange platform. The exchange launched in 2013 and currently enjoys over 2.2 million users and is available in 180 countries. The San Francisco based exchange is the largest bitcoin exchange in terms of liquidity and euro volume. Traders can buy and sell various cryptocurrencies, and trades on the platform are held in GBP, USD, EUR, CAD as well as Japanese yen. Users can make deposits via bank wire transfer, SEPA, and SWIFT.

  • Currently the exchange is available to users in close to 180 countries

  • Supports around 34 different cryptos

  • Daily trading volume ranges from 100 million to 300 million

  • A popular enterprise solution that allows setting up the gateway from selling cryptocurrency through wire transfer/credit/debit card

  • Offer higher buy limits and liquidity

  • Allows staking rewards in Bitcoin, Dollar, Euro, Tezos

  • Has Kraken OTC offering one-on-one service

  • Enhanced security with a strict security protocol

  • Support free fiat deposits through SEPA for traders on SEPA jurisdictions

  • Transactions can be through wire transfer, SWIFT, and SEPA

  • Kraken doesn't have its native token

  • Very few cryptocurrencies supported

  • The exchange charges high fees ranging from from0.42%-0.1%​

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What Are The Risks Of Cryptocurrencies

Erratic Fluctuations in Prices

Risk Of Being Hacked

Exorbitant Fees

One of the drawbacks of cryptos is the high fluctuation of crypto prices. The high volatility of bitcoin price means the price can drop suddenly and render the crypto worthless. Most importantly, the prices of cryptocurrencies are determined by market participants. If there is no activity, the price can likely plunge, leaving investors in losses. For instance, Bitcoin has previously dropped over $1000 in an hour, and thus the volatility becomes a challenge when tracking the real value of Bitcoin.

The cryptocurrency industry is still at its nascent stages, and as a result, it is a target for hackers and scammers. There has been a proliferation of scammers who scam crypto users and even hack wallets to steal bitcoins. It is vital not to share private and accounts access keys, and if possible, you should have two-step authentication through Google authentication, SMS, or email. To ensure your bitcoins are safe, you can set up another device that you keep offline and use it to store Google authentication or passwords.

Sometimes the transaction fees charged when buying and sending of bitcoin can be very high, with some providers charging up to 50% in trading fees. Before buying bitcoin, it is vital to be keen and ensure the fees charged are reasonable.

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The website is only for the educational purposes. The website does not constitute the provision of any financial or investment advice in connection with the use of the website. You should consult with a financial or investment professional to understand the risks of cryptocurrencies. You should not invest more than you are ready to lose. We don't guarantee you any trading profit.  BuyBitcoin24 doesn't offer legal services or company registration in Estonia. You can contact our legal team via website www.consulting24.co.​ We receive an affiliate advertising commission from crypto exchanges and Bitcoin wallets.