Bitcoin (BTC) is the first decentralized digital currency in history. Just after the financial crisis in 2008, the white paper ""Bitcoin: A Peer-to-Peer Electronic Cash System"" was published under the pseudonym of Satoshi Nakamoto.
Nakamoto invented Bitcoin in response to the need for an electronic payment system based on the revolutionary blockchain technology, which is used to record and control transactions, instead of trust. This payment system makes it possible for two parties to perform transactions directly with each other without the intervention of a third party such as a bank.
The technology behind Bitcoin is the Blockchain. The Bitcoin blockchain is a transparent digital ledger in which all Bitcoin transactions are permanently stored. The Bitcoin blockchain uses Proof-of-Work (PoW) as a consensus mechanism. The computing power of a computer (also known as miner) is used to process transactions and to secure the network. As compensation for the processing of transactions and for securing the network, miners receive Bitcoin.
Bitvavo makes it as easy as possible to buy digital assets and cryptocurrencies.
1. Sign Up
Create a free account with which you can buy, sell, send, receive and store Bitcoin. Access your Bitvavo account from every location, on mobile and desktop.
2. Transfer Funds
Verify your account and transfer Euros to your Bitvavo wallet using one of the 8 supported payment methods.
3. Buy and Trade
Buy or sell over 150 digital assets and pay a maximum trading fee of 0.25%. Store your assets in your Bitvavo wallet or send them to your external wallet.
Storing Bitcoin and other digital assets requires a wallet, but don’t worry: Bitvavo’s hosted wallet allows you to store Bitcoin without any technical knowledge. Here is a brief overview of the existing wallet options to store your Bitcoin:
Hosted wallets are wallets where the private keys to your Bitcoin are managed by a third party such as Bitvavo. Access to your account is protected by a password and other advanced security features. Once you are logged in, you can easily and conveniently manage your Bitcoin online. Bitvavo offers standard hosted wallets for all digital assets that are offered on the platform.
A software wallet is a program installed on your computer or other device in order to use and manage your Bitcoin. Using a software wallet gives you full control over your private keys, so you are not dependent on third parties. The risk is that you alone are in charge of the security of your Bitcoin, and if malicious parties have access to your device, your private keys (and therefore your Bitcoin) can be stolen.
A hardware wallet is a physical device on which you can store your Bitcoin offline. It is one of the safest ways to store your Bitcoin, because the private keys are stored on a separate and offline device. Access to this device is often protected by a password. In many ways, a hardware wallet can be compared to a safe in which your Bitcoin is stored.
You can use Bitvavo's hosted wallet to easily store, send and receive Bitcoin. Once you have purchased Bitcoin on Bitvavo, you can choose to send your Bitcoin from your Bitvavo wallet to your own software or hardware wallet.