What is Bitcoin? A Complete Guide To Start Investing in Bitcoin Today

Learn what Bitcoin is in this complete guide, all in one article. Understand Bitcoin easily, with step-by-step guidance for beginners.

What is Bitcoin and Why Are People Interested in it?

Bitcoin (BTC) is the world’s first digital currency, created in 2009. It operates on a blockchain system—a digital ledger that anyone can verify but cannot alter retroactively—making Bitcoin transparent and secure.

The key advantage of Bitcoin is that it is a digital asset independent of banks or governments, with a fixed supply of 21 million coins, which some people consider a store of value like gold.

Bitcoin has attracted global investors and users because it allows fast cross-border transfers and serves as a medium for investment or speculation. Its price volatility has made it one of the most popular digital currencies worldwide.

Who Created Bitcoin and Where Did It Come From?

Bitcoin was created by an individual or group under the pseudonym Satoshi Nakamoto. To this day, their true identity and nationality remain unknown.

Satoshi published the Bitcoin whitepaper in 2008, introducing the concept of peer-to-peer digital money that does not rely on central banks and allows fast, secure international transactions.

In 2009, Bitcoin was launched as open-source software that anyone could use. Satoshi’s ideas became the foundation of the cryptocurrency world and modern blockchain technology, transforming global finance and investment.

Key Features of Bitcoin

Bitcoin has several distinct features compared to traditional money:

• Decentralized: Bitcoin can be sent directly between users worldwide without banks or governments, reducing delays and cross-border fees.
  
  

• Limited supply: Only 21 million Bitcoin exist, making it scarce and a potential store of value, unlike fiat money, which can be printed freely.
  
  

• Transparency: Every transaction is recorded on the blockchain, verifiable by anyone, reducing fraud or manipulation and increasing investor confidence.
  
  

• High security: Blockchain’s cryptography ensures transactions cannot be altered, providing strong protection against online theft.
  
  

• Fast cross-border transfers: Bitcoin transfers take minutes or hours depending on fees, faster and cheaper than traditional methods.

Bitcoin vs. Traditional Money

 

What Determines Bitcoin’s Value?

Bitcoin’s price is primarily driven by supply and demand: more buyers increase the price, more sellers decrease it. Investor confidence also affects value.

Key factors influencing Bitcoin’s value:

• Limited supply: Maximum of 21 million coins.
  
  

• Halving mechanism: New coin creation slows over time, increasing scarcity.
  
  

• Adoption and usage: Cross-border payments, digital purchases, investments.
  
  

• News and institutional decisions: Policies, investments, and regulations impact confidence and price.
  
  

Because of these traits, Bitcoin is often called “digital gold”—scarce, a store of value, and an inflation hedge, but fully digital and globally accessible. Check out the price of Bitcoin on KuCoin here. 

How to Use and Start Investing in Bitcoin

1. Bitcoin Mining
Mining uses computer or ASIC hardware to solve complex math problems that validate blockchain transactions. Miners earn new Bitcoins as rewards.

Mining can be profitable but requires high energy consumption, powerful hardware, and technical expertise. It’s best for those who understand setup, maintenance, and mining pools.

2. Buying and Selling via Exchange
For those not mining, using an Exchange platform is simpler. Exchanges act as marketplaces for buying and selling Bitcoin and other cryptocurrencies, requiring no technical knowledge.

In Thailand, KuCoin Thailand is popular, beginner-friendly, supports multiple cryptocurrencies, and offers reasonable fees.

Steps to Start Buying Bitcoin on KuCoin

1. Create a KuCoin Account

• Go to the KuCoin website.
  
  

• Click "Sign Up" and enter your personal information, such as email and password.
  
  

• Verify your account through the confirmation email you receive.
  
  

2. Verify Your Identity (KYC)

• Log in and go to "My Account".
  
  

• Select "Verify Identity" and provide the required information, such as your name, address, and upload identification documents.
  
  

• Wait for verification by the KuCoin team.
  
  

3. Deposit Funds into Your Account

• Go to "Wallet" and select "Deposit".
  
  

• Choose the currency you want to deposit, such as THB (Thai Baht) or USDT.
  
  

• Transfer funds according to the instructions provided by the system.
  
  

4. Buy Bitcoin

• Once the funds are in your account, go to "Trade".
  
  

• Select the trading pair you want to use, for example, BTC/USDT.
  
  

• Enter the amount you want to buy and confirm the transaction.

 

Bitcoin Storage: Hot Wallet vs Cold Wallet

How to Store Bitcoin: Hot Wallet vs Cold Wallet

• There are two main ways to store Bitcoin: Hot Wallets and Cold Wallets, which differ in terms of convenience and security.

• Hot Wallet is a digital wallet connected to the internet, such as mobile apps, exchange websites, or online wallets. Hot Wallets are suitable for users who need frequent access and transactions because they allow instant transfers and trades. However, the risk is that they may be vulnerable to hacking or online theft.

• Cold Wallet is a wallet not connected to the internet, such as a paper printout of a private key or a hardware wallet. Storing coins in a Cold Wallet is highly secure and suitable for those who want to hold Bitcoin long-term but may find it less convenient for frequent trading or transfers.

Advantages and Disadvantages of Investing in Bitcoin

Investing in Bitcoin is a method many investors choose to generate long-term returns or diversify risks from other assets. Like any type of investment, Bitcoin has both advantages and limitations that should be carefully considered. Investors should understand both the pros and cons to plan their investment according to their goals and risk tolerance.

Advantages of Bitcoin Investment

• High growth potential: Bitcoin is a digital asset with limited supply; if demand is high, the price tends to increase.
  
  

• Convenient cross-border transfers: Bitcoin can be sent to anyone worldwide without going through banks.
  
  

• Hedge against inflation: Due to its limited supply, Bitcoin is often referred to as digital gold.
  
  

• Transparency and verifiable transactions: The blockchain system allows all Bitcoin transactions and holdings to be traceable.
  
  

Disadvantages of Bitcoin Investment

• High volatility: Bitcoin prices can rise and fall sharply in a short time.
  
  

• Security risks: If stored in a Hot Wallet or if the private key is not properly secured, it may be hacked or lost.
  
  

• Legal and tax uncertainty: Some countries have usage restrictions or changing tax regulations.
  
  

• Requires technical knowledge: Investors should understand how to store, trade, and manage risks in the digital market.

 

Risks of Bitcoin Investors Should Know

Even though Bitcoin has high return potential and is a popular digital asset, it comes with several risks that investors should recognize before investing.

Price volatility

Bitcoin prices fluctuate rapidly and unpredictably. Sometimes prices may increase by several percent in a single day, but they can also drop sharply. This volatility is caused by factors such as market demand, government policy announcements, institutional data, or global events affecting investor confidence. Investors who trade carelessly may lose their investment quickly.

Security risks

Bitcoin is a digital asset that must be stored in a digital wallet. Storing Bitcoin in a Hot Wallet or on an unregulated exchange may be vulnerable to hacking. Mismanagement of private keys is also a major risk, making proper security and wallet selection critically important.

Legal and Tax Risks

Bitcoin and other cryptocurrencies still exist in legally unclear areas in many countries. Some countries may impose restrictions on holding, trading, or spending digital currencies. Changes in laws and tax policies can occur at any time, potentially affecting the value of Bitcoin and its usability. Therefore, investors should regularly follow news and legal requirements in their country.

Being aware of these risks, diversifying investments, and securely storing coins can help investors reduce risk and increase the potential for sustainable investments. 

Thai Regulations on Crypto Investment

1. Under Thai law, the Securities and Exchange Commission (SEC) enforces the Digital Asset Act B.E. 2561 (2018) to regulate all types of digital assets, including cryptocurrencies and digital tokens.

2. Investors should only use platforms licensed by the SEC, as the new law allows the SEC to easily block unlicensed platforms.

3. Regarding taxation, the Revenue Department stipulates that profits from selling or exchanging cryptocurrencies (or returns from mining/staking) are considered assessable income under Section 40(4)(ฌ) or Section 40(8). Losses can be offset to reduce tax liability if the transactions are conducted through an SEC-certified exchange.

Sources: 

https://sec.or.th/TH/Documents/DigitalAsset/digitalasset_summary.pdf

https://www.sec.or.th/digitalasset

https://siamblockchain.com/2025/04/13/thai-sec-to-prohibit-unregister-crypto-platform

https://www.rd.go.th/fileadmin/user_upload/lorkhor/information/manual_crypto_310165.pdf

https://siamblockchain.com/2025/01/03/tax-filing-for-thai-crypto-investor-2025/

 

Comparing Bitcoin Investment with Other Investments

Investing in Bitcoin differs from traditional investments such as stocks, mutual funds, or gold in several ways. Investors should understand these differences to choose an investment strategy that aligns with their goals and risk tolerance.

Comparison Table: Bitcoin vs. Other Investments

 

From the table, when comparing Bitcoin with traditional assets like gold, stocks, and real estate, it is clear that Bitcoin stands out in terms of high liquidity and fast global transfers. It also offers the potential for significant short-term returns. However, this comes with high price volatility and legal uncertainty.

Gold is regarded as a stable asset that has long been used to hedge against inflation. While it does not provide high short-term returns, it is a reliable store of value.

Stocks offer the potential for long-term growth and can generate income through dividends. However, volatility depends directly on company performance and economic conditions.

Real estate provides long-term stability and continuous income through rental yields. However, it requires substantial capital and has lower liquidity compared to other asset types.

Although Bitcoin is often seen solely as an investment asset, it has several practical uses in the real world. Investors and Bitcoin holders can utilize the currency in multiple ways, such as:

Buying Goods and Services

Bitcoin can be used to purchase goods and services both online and at physical stores that accept cryptocurrency payments. Using Bitcoin allows for fast transactions without intermediaries like banks and enables purchases from international vendors immediately, without worrying about exchange rates or international transfer fees.

Cross-Border Transfers

One major advantage of Bitcoin is the ability to transfer money internationally quickly and with low fees. Users can send funds to family or businesses abroad without relying on traditional banks or money transfer companies. Transactions typically take only minutes or a few hours, depending on network conditions and fees.

Participating in NFT, DeFi, and GameFi

Bitcoin and other cryptocurrencies can be used in the worlds of NFTs (Non-Fungible Tokens), DeFi (Decentralized Finance), and GameFi. Investors can buy digital art NFTs, in-game tokens, or participate in decentralized financial platforms. Using Bitcoin in these systems allows investors to engage in a rapidly growing digital economy and generate new sources of income or returns.

Online Markets and Marketplaces

Many online platforms and marketplaces allow buying and selling goods or services with Bitcoin, such as online stores, collectible marketplaces, or digital asset exchanges. Using Bitcoin in these marketplaces ensures transparent and verifiable transactions while reducing the risks associated with cash or credit card payments.

Bitcoin has been widely recognized as a digital asset with the potential to become the money of the future, due to its real-world uses in various areas and acceptance by leading financial institutions worldwide.

The report “2025 Crypto Market Outlook” by Coinbase states that the crypto market is expected to continue growing in 2025, with significant increases in acceptance by financial institutions. This means that Bitcoin is not just an investment tool but is also beginning to play a role in real-world transactions.

In addition, Bitcoin is being used in various areas, such as online payments, cross-border transfers, and investment in other digital assets. These uses help increase confidence in Bitcoin and demonstrate its potential as future money.

Meanwhile, analysts from Bernstein have predicted that Bitcoin’s price could reach $150,000 following the Bitcoin Halving event in 2024, which will cut the rate of new Bitcoin creation in half—an important factor supporting Bitcoin’s price growth trend.

Therefore, with acceptance from financial institutions, real-world usage in multiple areas, and future growth potential, Bitcoin has the potential to truly become the money of the future.

 

Currently, investors can buy and sell Bitcoin through Exchange platforms that are licensed and regulated by authorities such as the Bank of Thailand and the Securities and Exchange Commission (SEC) of Thailand.

KuCoin is one of the popular platforms in Thailand that supports trading Bitcoin and various cryptocurrencies. It is suitable for beginners who are just starting to invest because it offers an easy-to-use interface, features for learning how to trade, and the ability to start investing immediately after signing up. Investors can therefore begin trading Bitcoin with confidence in both security and convenience.

Understanding the legal aspects is also important. In Thailand, holding and trading Bitcoin is still regulated under laws related to digital assets. Investors should study the tax requirements and investment regulations to ensure proper and safe investment.

Whether you are just starting to explore Bitcoin or looking to expand your crypto portfolio, getting started is easy and convenient. Apply to start trading Bitcoin on KuCoin Thailand today here.

 

Bitcoin Price Drops Below $110,000
In late August 2025, the price of Bitcoin fell below $110,000 after breaking key support levels at $112,000 and $110,000, making it possible to test the $100,000 level again. Analysts warned that if the price cannot recover, there may be continued short-term corrections.

Source: https://cointelegraph.com/news/bitcoin-drops-under-109k-how-low-can-btc-price-go-next

US SEC and CFTC Issue Guidance on Spot Crypto Trading
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement clarifying that current law does not prohibit spot crypto trading on platforms licensed by regulatory authorities. This guidance provides greater clarity and confidence for investors and service providers in the crypto market.

Source: https://cointelegraph.com/news/us-sec-cftc-joint-guidance-spot-crypto-trading

 

1. What is Bitcoin?

Bitcoin is a decentralized digital currency that operates on blockchain technology. It is used for transferring money, trading, and investing.

2. How much is 1 Bitcoin in Thai Baht?

As of September 4, 2025, 1 BTC is approximately 3.6 million THB, based on the USD price of around $110,032 and the average exchange rate.

3. What is Bitcoin mining?

Bitcoin mining is the process of using computers to solve mathematical equations and verify transactions on the blockchain. Miners are rewarded with newly created Bitcoins.

4. How does Bitcoin generate income?

Investors can earn from Bitcoin in several ways:

• Trading
  Yes - buying Bitcoin and selling it at a higher price means you can pocket or earn from the price difference.
  
  

• Long-term investment (HODL): Holding Bitcoin for the long term, expecting its value to increase over time.
  
  

• Bitcoin Mining:
  Using computers or specialized mining rigs to solve mathematical equations to create new blocks, earning Bitcoin as rewards.
  
  

5. Is Bitcoin illegal?

In Thailand, Bitcoin is not illegal, but it must be traded through platforms licensed by the SEC (Securities and Exchange Commission) and comply with tax regulations.

6. What is the minimum amount to buy Bitcoin?

It is not necessary to buy a full 1 BTC. Bitcoin can be purchased in smaller fractions called Satoshi, starting from as little as tens or hundreds of Baht.

7. Who owns Bitcoin?

No one owns all of Bitcoin. The network is decentralized, and only those who hold the private key own the coins in their wallets.

8. What is Bitcoin mining?

Bitcoin mining is the process of using computing power from computers or specialized mining rigs to solve complex mathematical equations. Miners are rewarded with newly created Bitcoins and transaction fees.

Bitcoin is the world’s first digital currency that revolutionized the traditional financial system, allowing investors to transfer money and store value directly without banks or central authorities. It uses blockchain technology, which is transparent, verifiable, and secure, making Bitcoin widely recognized.

Despite price volatility and evolving legal regulations, Bitcoin has proven to play a significant role in the modern financial world, serving as an investment asset, a tool for speculation, and a payment method increasingly accepted worldwide, including in Thailand.

If you are interested in starting to trade Bitcoin safely and conveniently, register with KuCoin Thailand today and confidently begin your Bitcoin trading journey. Whether you are a beginner or an experienced trader, you can trade Bitcoin easily and access a wide variety of other coins immediately.

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 ⚠️ Disclaimer: Cryptocurrency and digital token involve high risks; investors may lose all investment money and should study information carefully and make investments according to their own risk profile.

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