Bitcoin frequently asked questions
Clear answers to common questions about ownership, wallets, fees, privacy, supply and safety.
What is Bitcoin?
Bitcoin is a peer-to-peer monetary network and digital asset. Ownership is controlled through cryptographic keys rather than an account at a central issuer.
Do I need to buy one whole bitcoin?
No. Bitcoin is divisible into 100 million units called satoshis, so users can hold or transfer fractions.
What does a Bitcoin wallet store?
A wallet manages keys and constructs transactions. The bitcoin itself is recorded on the blockchain, not stored inside the device.
What is a seed phrase?
A seed phrase is a human-readable backup that can recreate wallet keys. Anyone who obtains it may be able to control the funds.
Why do Bitcoin fees change?
Users compete for limited block space. Demand, transaction size and fee selection affect confirmation speed and cost.
Is Bitcoin anonymous?
No. Bitcoin is pseudonymous. Transactions are public, and addresses can sometimes be linked to identities through exchanges, reuse and network analysis.
Can a Bitcoin transaction be reversed?
Confirmed Bitcoin transactions generally cannot be reversed by a bank or administrator. Verify the address, amount and fee before sending.
Does limited supply guarantee a higher price?
No. Supply is only one factor. Demand, liquidity, regulation, technology, custody and market conditions also matter.
Is Bitcoin risk-free?
No. Risks include volatility, scams, lost keys, custody failures, regulation changes, software mistakes and operational errors.
Where should a beginner start?
Learn wallets, seed phrases, addresses, fees and small test transactions before moving larger amounts or using advanced products.