CASP z siedzibą w Danii4,8/5Guide · Crypto basics · Updated 19 August 2026 · 4 min read
What is Bitcoin?
Bitcoin started it all: the first cryptocurrency and still the largest by market value. This guide explains how the network works, what Bitcoin is used for, how it differs from other crypto assets — and how to buy it safely in Denmark. It is educational, not investment advice.
The short version
- Bitcoin (2009) is the first cryptocurrency — a decentralised network with no central issuer.
- The supply is fixed in the code: there can never be more than 21 million bitcoin.
- Transactions are verified by the network (mining) and recorded on a public blockchain.
- The price can swing considerably — Bitcoin is a risky asset, not a bank deposit.
What is Bitcoin?
Bitcoin is a digital asset and a payment network in one. It launched in 2009, created by the anonymous Satoshi Nakamoto as the first system letting two parties transfer value directly over the internet — with no bank in the middle. The network is maintained by thousands of computers worldwide, and no single company or state controls it.
One bitcoin divides into 100 million units (satoshis), so you can own and trade fractions — you never need to buy a whole BTC.
How does Bitcoin work?
Every Bitcoin transaction is recorded on a blockchain — a shared, public ledger. Network participants (miners) compete to verify transactions and group them into blocks; as a reward they receive new bitcoin on a fixed, declining schedule. That is how new bitcoin is issued — and why the supply can never exceed 21 million.
Ownership is controlled with cryptographic keys: whoever holds the private key controls the bitcoin. That is why safe storage — your own wallet or a regulated platform — is central.
What is Bitcoin used for?
- Store of value — Many regard Bitcoin as a digital store of value because of its fixed supply — hence the nickname “digital gold”. The price can still swing considerably.
- Transfers — Value can be sent directly between two parties, across borders, without intermediaries.
- Trading and investing — Bitcoin is the most traded crypto asset and part of most portfolios with crypto exposure. No return is guaranteed.
Bitcoin vs. other crypto assets
Bitcoin is built for one purpose: transferring and storing value without a central party. Newer networks like Ethereum add programmability (smart contracts), and stablecoins aim for price stability rather than a free-floating market. Different assets solve different things.
How to buy Bitcoin safely
- Choose a regulated platform — Use a supervised CASP you can verify yourself in Finanstilsynet’s or ESMA’s register.
- Sign up and verify your identity — On Penning this happens with MitID or passport — typically under 5 minutes.
- Start with an amount you can afford to lose — The price can swing sharply. Fractions are the norm — you never need a whole BTC.
- Keep records from day one — Gains are generally taxable in Denmark, and good documentation makes your own filing easier.
Crypto carries a risk of loss, and no return is guaranteed. Treat Bitcoin as a risky asset.
Frequently asked questions
This guide is educational and not investment advice. Crypto assets carry a risk of loss.
Ready to get started?
Buy Bitcoin on a Danish, MiCA-licensed platform — sign up with MitID, deposit DKK, and receive BTC in a wallet you control.