# Bitcoin > Bitcoin is the first and largest cryptocurrency, with a fixed supply of 21 million coins. Learn how it works, halvings, what moves its price and how to trade it. Source: https://learn.tradelabsai.com/crypto/bitcoin/ Track: Crypto · Level: Beginner · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Bitcoin", https://learn.tradelabsai.com/crypto/bitcoin/ Bitcoin is a digital currency that runs on a public, decentralised network without a central bank or company in charge. It was described in a 2008 white paper by the pseudonymous Satoshi Nakamoto and launched in January 2009. Bitcoin's supply is capped at 21 million coins, new coins are created on a fixed schedule, and transactions are recorded on a public ledger called a blockchain. It is the largest cryptocurrency by market value and the main reference asset for the whole crypto market. The overview of crypto trading is in [Crypto Trading](https://learn.tradelabsai.com/markets/crypto-trading/). ## How Bitcoin works | Concept | Meaning | |---|---| | Blockchain | A public ledger of all transactions, grouped into blocks. See [Blockchain Basics](https://learn.tradelabsai.com/crypto/blockchain-basics/) | | Proof of work | Miners compete to add blocks by solving computational puzzles, securing the network | | Block time | A new block about every 10 minutes | | Block reward | New bitcoins paid to the miner of each block, plus transaction fees | | Halving | The block reward halves about every four years (every 210,000 blocks) | | Wallets and keys | Ownership is controlled by private keys; whoever holds the key controls the coins | | Satoshi | The smallest unit: 0.00000001 BTC | ## Supply and halvings | Halving | Year | Block reward after | |---|---|---| | Launch | 2009 | 50 BTC | | First | 2012 | 25 BTC | | Second | 2016 | 12.5 BTC | | Third | 2020 | 6.25 BTC | | Fourth | April 2024 | 3.125 BTC | Each halving cuts the rate of new supply. By 2024, more than 19.5 million of the 21 million coins had been mined, and the last bitcoin is expected around 2140. Some investors point to past bull markets after halvings, but with only a few cycles, it is hard to separate the halving's effect from other factors such as interest rates and adoption. ## What moves Bitcoin's price | Driver | Example | |---|---| | Liquidity and interest rates | Bitcoin has often risen when global liquidity expanded and fallen when rates rose, as in 2022 | | Institutional flows | US spot Bitcoin ETFs, approved in January 2024, attracted tens of billions of dollars | | Regulation | Approvals, bans and enforcement actions | | Leverage and liquidations | Large leveraged positions in futures can amplify moves. See [Liquidations in Crypto](https://learn.tradelabsai.com/crypto/liquidations-in-crypto/) | | Sentiment and narratives | Store of value, inflation hedge, adoption headlines | | Exchange failures and hacks | FTX's collapse in November 2022 pushed Bitcoin below $16,000 | **Example: Volatility in practice** Bitcoin rose from about $29,000 at the start of 2021 to an all time high near $69,000 in November 2021, then fell to around $15,500 in November 2022, a decline of about 77%. It recovered to new highs above $73,000 in March 2024 after spot ETFs launched, and later traded above $100,000. Daily moves of 5% or more are common, so position sizing matters. See [Position Sizing](https://learn.tradelabsai.com/risk/position-sizing/). ## Ways to trade Bitcoin - **Spot on exchanges:** buy and hold actual BTC. See [Crypto Spot Trading](https://learn.tradelabsai.com/crypto/crypto-spot-trading/). - **Spot ETFs:** exposure through a regular brokerage account. - **Futures:** CME Bitcoin and Micro Bitcoin futures, regulated and cash settled; crypto exchange futures. See [Crypto Futures and Basis](https://learn.tradelabsai.com/crypto/crypto-futures-and-basis/). - **Perpetual futures:** the most traded crypto derivative, with funding payments. See [Perpetual Futures](https://learn.tradelabsai.com/crypto/perpetual-futures/). - **Options** on crypto exchanges and CME. - **Prediction markets:** short Bitcoin up or down rounds on Polymarket. See [Up or Down Markets Explained](https://learn.tradelabsai.com/prediction-markets/up-or-down-markets-explained/). The [TradeLabs AI chart](https://tradelabsai.com/chart) shows live Bitcoin candles with indicators and Polymarket's short rounds, which is useful for practising how intraday Bitcoin moves look. ## Risks - **Extreme volatility** and deep drawdowns. - **Custody risk:** lost keys or exchange failures can mean total loss. - **Regulatory risk** that varies by country. - **Leverage risk** in derivatives. - **Scams and fraud** targeting newcomers. See [Identifying Trading Scams](https://learn.tradelabsai.com/start-here/identifying-trading-scams/). ## Frequently asked questions ### What is Bitcoin? A decentralised digital currency with a fixed supply of 21 million coins, recorded on a public blockchain and secured by proof of work mining. ### What is the Bitcoin halving? An event about every four years when the reward for mining a block is cut in half, slowing the creation of new bitcoins. ### How can I trade Bitcoin? By buying it on exchanges, through spot ETFs, or with futures, perpetual futures and options. Next, learn about the second largest cryptocurrency in [Ethereum](https://learn.tradelabsai.com/crypto/ethereum/). ## Sources - Nakamoto, S., [Bitcoin: A Peer to Peer Electronic Cash System](https://bitcoin.org/bitcoin.pdf), 2008 ## Continue learning - Next lesson: [Ethereum](https://learn.tradelabsai.com/crypto/ethereum/) - Related: [Crypto Trading](https://learn.tradelabsai.com/markets/crypto-trading/): How crypto trading works: exchanges, spot vs perpetual futures, wallets, 24/7 markets, fees, volatility and risk management, with a worked Bitcoin trade. - Related: [Blockchain Basics](https://learn.tradelabsai.com/crypto/blockchain-basics/): A blockchain is a shared ledger secured by cryptography and consensus. Learn blocks, hashes, keys, wallets, proof of work and proof of stake, and finality. - Related: [Ethereum](https://learn.tradelabsai.com/crypto/ethereum/): Ethereum is a programmable blockchain that runs smart contracts, with ether (ETH) as its native asset. Learn how it works, proof of stake, gas and price drivers. - Related: [Crypto Spot Trading](https://learn.tradelabsai.com/crypto/crypto-spot-trading/): Spot trading means buying and selling actual crypto at current prices. Learn order types, pairs, fees, sizing, custody and how spot differs from derivatives. - Related: [Perpetual Futures](https://learn.tradelabsai.com/crypto/perpetual-futures/): Perpetual futures are crypto derivatives with no expiry, kept close to spot by funding payments. Learn how perps work, leverage, margin, funding and the main risks. - Related: [On-Chain Analytics](https://learn.tradelabsai.com/crypto/on-chain-analytics/): On chain analytics studies public blockchain data such as addresses, flows and holder behaviour. Learn key metrics like MVRV and SOPR, data tools and their limits.