How to play Bitcoin? Learn in 5 minutes what Bitcoin is and how to buy it!

What is Bitcoin?

BitcoinIt is a virtual asset created by Satoshi Nakamoto and officially launched in 2009. To date, Bitcoin is one of the most well-known and widely used cryptocurrencies in the world. Bitcoin has four main features:

• Decentralization: Primarily maintained and operated through peer-to-peer networks and computational power, eliminating the need for third-party intermediaries such as government agencies or banks. This enables freer circulation of currency and enhances transaction efficiency.

• Scarcity: Bitcoin has a limited supply, creating scarcity and preventing devaluation due to inflation. The maximum supply of Bitcoin is 21 million coins.

• Security (anonymity + openness and transparency): Bitcoin is based on blockchain technology, with public and transparent transaction records that cannot be tampered with. Each transaction is recorded and published on the blockchain only with a unique identifier, and the names of the transactors are never disclosed, ensuring complete anonymity and effectively protecting the parties involved.

• Globalization + Wide Application: Various countries have successively legalized Bitcoin, gradually expanding its global acceptance. At the same time, Bitcoin is programmable; as long as there are smart contracts for Bitcoin, it can be used, thereby broadening its scope of application.

Overall, these four features not only make Bitcoin a valuable virtual asset, but also continuously increase its investment value.

Another analyst stated,In a rate-cutting cycle, the value of "Bitcoin" can rival that of "gold."! But is this really the case? Let's wait and see!

How does Bitcoin work?

ToUnderstand BitcoinTo understand how it works, you need to know that blockchain plays a crucial role. Blockchain is a decentralized public ledger that records every Bitcoin transaction and cannot be tampered with. All transaction histories are fully visible, publicly and transparently recorded on the shared blockchain.

In addition, it also includes the following elements and mechanisms:

• Precision Technology + High Fault-Tolerance System

  1. Bitcoin uses sophisticated cryptographic encryption, making it difficult to tamper with transaction records and ledgers.

  2. The system itself is highly fault-tolerant and will not fail due to a single point of failure.

• Limited supply

  1. The total supply of Bitcoin is capped at 21 million, which prevents it from being devalued by inflation. This limited and predictable issuance mechanism gives Bitcoin store-of-value properties.

  2. New Bitcoins are gradually released into the market through "mining." Initially, 50 Bitcoins were awarded for each block verified. However, to maintain its scarcity, a "Bitcoin halving" mechanism was introduced: the reward is halved every 210,000 blocks (approximately every four years).

• Mining and Consensus Mechanisms

  1. Mining is generated by verifying transactions. Those responsible for carrying out the verification process are generally referred to as miners. In the process, they use computing power to solve complex mathematical problems, which is known as "Proof-of-Work." Upon completing the verification, they receive newly issued Bitcoins as a reward.

  2. The Proof-of-Work consensus algorithm is employed to ensure network security and transaction reliability.

Overall, the process of Bitcoin mining and operation is:

⮕ Miners first collect pending Bitcoin transaction data and consolidate it into a data block called a "block." Roughly every 10 minutes, a new block appears on the network.

⮕ Miners perform "proof-of-work," which involves using computational power to solve complex mathematical problems.

⮕ Successfully solving the problem means successfully verifying the transaction, and the miner will be rewarded with a certain amount of newly generated Bitcoin.

⮕ The mined block is then added to the end of the entire Bitcoin blockchain.

Four Myths About Bitcoin

Is Bitcoin a bubble?

Although the price of Bitcoin can be quite volatile at times, and some people engage in speculative investments to reap substantial returns or even suffer margin calls due to excessive leverage, this does not mean that Bitcoin is a bubble.

All bubbles share a common characteristic: their value cannot be sustained, and in some cases, they possess no value at all—neither use value nor exchange value.

When assets are suddenly subject to speculative trading, their prices surge in the short term—often out of step with underlying fundamentals—drawing in new participants who rush in to "follow the crowd," thereby driving prices even higher and overheating the market. At that point, the bubble can burst at any moment, causing prices to plummet and resulting in widespread losses. A famous example of a bubble is the 17th-century "Tulip Mania," during which speculators drove up the prices of certain tulip bulbs to astronomical levels, with prices soaring by a factor of 26 in just six months. Eventually, the bubble burst, and the inflated prices never recovered.

However, over the past 12 years, Bitcoin has gone through multiple price cycles, and each time it has rebounded to a certain level or even reached new highs. In addition, Bitcoin has now been gradually recognized and legalized in various countries; some places have even designated it as legal tender, while regulatory frameworks are becoming increasingly comprehensive and well-established.

Does Bitcoin have any intrinsic value?

Although Bitcoin may not be backed by a tangible asset like gold, in fact, since the official end of the Bretton Woods Agreement in 1973—when the U.S. dollar was no longer pegged to the price of gold—virtually no fiat currency has been backed by a tangible asset.

However, the total supply of Bitcoin is limited to 21 million coins and is governed by open-source code, which no single person can alter. This scarcity helps guard against inflation and ensures its value; in contrast, when fiat currencies are produced in large quantities, inflation occurs, leading to depreciation.

This characteristic makes Bitcoin a potential substitute or complementary asset to traditional financial assets.

Is it safe to invest in Bitcoin?

The security of Bitcoin is mainly attributed to its "decentralized" nature. Every transaction on the Bitcoin network is completely transparent, and the following conditions make it extremely difficult to forge or create fake transactions:

• 1. Blockchain Technology

  Bitcoin uses a decentralized and encrypted blockchain system, where each transaction is recorded in a block and linked together in a chain, making it difficult to modify or delete the transaction data. This high level of transparency and traceability ensures that suspicious transactions cannot be concealed, giving investors peace of mind when trading.

• 2. Consensus Mechanism

  The consensus mechanism requires miners to verify transactions by solving random and complex mathematical problems, making transactions more secure and making Bitcoin the first virtual currency to solve the "double-spending" problem.

• 3. Cross-border and massive computing power

  Vast computational power ensures network security, and the miners supporting the network are distributed worldwide, itsThe node covers 100 countries/regions., which means there will be no single point of failure.

  Of course, investors must still take care to safeguard the security of the accounts they use for trading. For example, if you use a private key, you must never disclose it to anyone else.

Is Bitcoin legal?

The JPEX incident may cast a shadow over the public's perception of trading virtual assets such as Bitcoin, leading some to believe that virtual assets are a scam or illegal. In fact, the legality of Bitcoin depends on the jurisdiction of different countries and regions.

Some regions have completely banned Bitcoin, largely because the real identities in the Bitcoin network are anonymous and hidden, and there is no central bank control, such as Nepal, Pakistan, Bolivia, and Ecuador; while Egypt's national legislature has ruled that Bitcoin violates religious laws.

However, trading virtual assets is legal in Hong Kong. To protect investors, the government has established a licensing system and stringent regulatory requirements for Virtual Asset Service Providers (VASPs). Therefore, if investors want to invest in Bitcoin and other virtual assets, they should choose licensed and legitimate virtual asset trading platforms for greater security.

In addition, in most regions, especially in Western countries, Bitcoin has become legal tender in certain transactions. Among them, the United States, the United Kingdom, Taiwan, and all EU member states accept Bitcoin as a valid form of currency in peer-to-peer transactions. Their Bitcoin regulations allow two voluntary participants to use virtual cryptocurrency in a transaction, meaning one party is willing to purchase a product with Bitcoin, while the other party is willing to accept Bitcoin as a payment method.

Factors Affecting the Price of Bitcoin

In 2025, the price of Bitcoin experienced significant fluctuations, soaring from about US$110,000 at the beginning of the year to over US$126,000 at one point, hitting a new all-time high. Major financial institutions are even more optimistic that Bitcoin could reach US$200,000! At the beginning of the year, driven by global capital inflows and expectations of interest rate cuts, coupled with the continuous development of blockchain technology, the price of Bitcoin rose rapidly; however, geopolitical instability and trade wars increased risk-averse sentiment, leading to multiple short-term corrections.

There are many factors that affect the price of Bitcoin, mainly:

1. Scarcity: With a cap of 21 million Bitcoins, the scarcity of supply combined with rising demand will drive up the price. The "Bitcoin halving" event, which occurs every four years, reduces the supply of Bitcoin, thereby boosting its price.

2. Regulatory policies: When the U.S. government's attitude clearly shifts toward being more open to cryptocurrencies, the price of Bitcoin will also rise as a result. For example, the U.S. Congress's deliberation on the CLARITY Act and other measures that clarify regulatory standards for digital assets has boosted market confidence.

3. Macroeconomic environment: Bitcoin plays a dual role in times of economic turmoil. When the global economy is shrouded in uncertainty or geopolitical conflicts erupt, its status as "digital gold" becomes more prominent; however, market panic may also increase, leading to sell-offs. On the other hand, with rising expectations of interest rate cuts and a weakening U.S. dollar, market liquidity improves, encouraging capital allocation to the Bitcoin market.

4. Capital inflows: When institutions continuously buy Bitcoin as reserve assets and spot ETFs experience significant capital inflows, increased demand will also drive up prices.

In the cryptocurrency market, price fluctuations are extremely volatile, and investor sentiment swings dramatically like a roller coaster. As a beginner, you may often hear the saying, "Be greedy when others are fearful, and be fearful when others are greedy." But how exactly can you tell whether the market is in a state of "fear" or "greed"? Futubull's Cryptocurrency Fear & Greed Index is precisely a practical reference tool.

What is the Fear and Greed Index? Simply put, it's an indicator that measures overall market sentiment in the cryptocurrency space—specifically tailored for the crypto market.

Take the index provided by Futu as an example, with a value range from 0 to 100:

• A score of 0 represents "extreme fear," indicating weak market confidence and widespread expectations that prices will fall further.

• A reading of 100 signifies "extreme greed," indicating heightened market sentiment and a rush by investors to buy in, fearing they will miss out on the rally.

Based on the index level, market sentiment can be broadly categorized into the following ranges:
– 0–20: Extreme Fear (the market may be oversold, or it could be a potential buying opportunity)
– 20–40: Fear (investors tend to be cautious, and prices may be low)
– 40–60: Neutral (no clear directional bias in sentiment; price may trade in a range)
– 60–80: Greed (optimistic market sentiment, prices generally rising)
– 80–100: Extreme Greed (the market may be overheated; watch out for the risk of a pullback)

Referencing this metric helps avoid chasing prices in FOMO-driven mania or panic-selling in fear, fostering more rational investing and reducing the element of gambling that comes from acting on gut feelings.

What is the Bitcoin Halving?

The "Bitcoin halving" is closely related to "mining." New Bitcoins are generated through the process of "mining." Miners receive a certain amount of Bitcoin as a reward each time they successfully verify transactions and submit a block to the Bitcoin blockchain. The "Bitcoin halving" refers to the periodic reduction by half of the mining reward (the newly issued supply of Bitcoin).

The initial Bitcoin reward was 50 Bitcoins per block, and under the halving mechanism, the reward for miners is reduced by 50% every time 210,000 new blocks are added. This halving occurs approximately every four years.

The purpose of the halving is to control the total supply of Bitcoin, maintain its scarcity, and preserve its value.

As of 2024, the Bitcoin halving schedule is:

The next halving is expected to occur in April 2028*, when the block height will reach 1.05 million. The market expects that all 21 million Bitcoins will be fully mined by 2140.

*Source: CoinGecko

The Impact of the Bitcoin Halving

With the halving event slowing down the rate of new Bitcoin mining, the supply of Bitcoin will become increasingly scarce. While rising demand and falling supply can curb inflation, they can also lead to a situation of supply shortage, driving up the price of Bitcoin.

Each halving attracts market attention and discussion because it affects the supply of new Bitcoins and mining profitability. Halvings are often seen as one of the catalysts for Bitcoin price increases.

Ways to Obtain Bitcoin

To obtain Bitcoin, in addition to mining, you can also:

1. Accepting gifts: Friends, family, or others can directly transfer Bitcoin to the user as a gift.

2. Using Bitcoin as a transaction currency: Individuals or businesses can accept Bitcoin from customers in exchange for goods or services.

3. Bitcoin airdrops: Some institutions or organizations host Bitcoin airdrop events, distributing a specified amount of Bitcoin for free. Participants usually only need to register an account or complete a simple task to receive it.

4. Buying Bitcoin: Users can buy Bitcoin through licensed securities firms or exchanges that provide virtual asset trading services. They can use fiat currencies (such as US dollars, Hong Kong dollars, etc.) to trade and purchase Bitcoin.

How do you play Bitcoin?

After acquiring spot Bitcoin, you can directly buy and sell it on cryptocurrency exchanges. Spot trading is one way to invest in Bitcoin; in addition, you can also participate in Bitcoin investment through the following channels, according to your investment level:

• Bitcoin ETF

  • Due to the high volatility and relatively high risk of Bitcoin, the entry threshold for investing in Bitcoin is often quite high.

  • Bitcoin ETFThey can be divided into Bitcoin spot ETFs and Bitcoin futures ETFs.

  • Bitcoin spot ETFs track the "price of Bitcoin," while Bitcoin futures ETFs track the "price of Bitcoin futures contracts." Investing in a basket of spot and futures contracts helps to diversify risk.

  • Relatively suitable for beginners.

• Bitcoin-related concept stocks

  Besides investing in Bitcoin itself, you can also start with its concept, which is relatively easy to get into. Concept stocks related to Bitcoin include the following six categories:

  1. Bitcoin mining companies: manufacturers of specialized equipment that provides computing power for the Bitcoin network, or large-scale mining farm operators, etc. The more they can help with mining, the higher their value may be.

  2. Bitcoin exchange: A company that provides Bitcoin trading services. Its revenue comes from transaction fees and custody services. In other words, the more people use the exchange to buy and sell, the more positive the impact on its stock value.

  3. Blockchain technology companies: enterprises that develop and apply blockchain technology to provide blockchain-based solutions to clients.

  4. Payment tools/financial companies: Traditional financial payment companies that offer Bitcoin payment services, providing customers with Bitcoin payment, investment, and other services. The more prosperous the business development, the better the investment potential may be.

  5. Hardware equipment companies: Companies that manufacture and sell Bitcoin mining equipment. The better their performance, the higher the demand, which can boost their value!

  6. Fund management company: an asset management company that issues Bitcoin ETFs and funds.

• Bitcoin-related derivatives

  You can invest in Bitcoin-related derivatives, such as futures and options, for hedging or speculation. However, for beginners, the risks and rewards of derivative investments are relatively difficult to predict.

How to trade Bitcoin in Hong Kong

Futu Securities is a licensed entity regulated by the Securities and Futures Commission of Hong Kong, offering virtual asset trading services that enable one-stop trading of cryptocurrencies, cryptocurrency spot ETFs, futures ETFs, and related concept stocks. Futu currently supports trading in Bitcoin and Ethereum. More popular cryptocurrencies will be added successively, so stay tuned.

With Futu, you can trade cryptocurrencies in just 4 steps:

• Step 1: Enable the Crypto Trading Feature

  After opening your account, enable the crypto trading feature by going to the "Account" page, tapping "Cash Comprehensive Account," and then selecting "Account Management" under "More." Immediately activate the trading products, and then go to the "Not Activated" section to select "Cryptocurrencies."

• Step 2: Assessment Testing

  Before you can activate a cryptocurrency account, you must complete a "Virtual Asset Risk Assessment, Virtual Asset Position Limit Assessment, and Virtual Asset Knowledge Test," as well as identity verification. After submitting your application, the activation process typically takes about five minutes; upon successful activation, you will receive a system notification and an email.

• Step 3: Deposit Funds into Your Cryptocurrency Account

  Before trading cryptocurrencies, please take the time to transfer funds to your crypto account. Go to the "Account" page, tap "Cash Comprehensive Account – Cryptocurrency," select "Fund Transfer" or "Deposit Funds," choose the currency type and enter the amount, and once the funds are credited, you can start trading.

• Step 4: Transaction

  Go to [Market] - [Cryptocurrency], select [Bitcoin/Ether], click "Trade" in the lower left corner, and you can start trading. (How to Trade Cryptocurrency on Futubull) If you are interested in investing in a Bitcoin ETF: You can search for "cryptocurrency ETF" in the search box to track different Bitcoin ETFs. You can also find out the asset size and basic information of each ETF, such as management fees and dividend policies, on the ETF fund page for reference in your investment decision-making.

For beginners investing in Bitcoin, a secure and reliable trading platform is especially important! Futu is securely licensed, so you can rest assured to start your cryptocurrency investment journey here, while also enjoying zero-commission offers!

Futu Launches BTC, ETH, and USDT Deposit Functions

Futu has officially launched deposit services for Bitcoin (BTC), Ethereum (ETH), and Tether (USDT)*. Eligible investors can deposit funds and trade cryptocurrencies ("Crypto") through the one-stop trading platform Futubull, gaining access to a broader range of asset classes or withdrawing funds securely. With a single app, investors can seamlessly navigate both Crypto and TradFi assets—traditional financial assets including Hong Kong, U.S., and Japanese stocks, options, ETFs, mutual funds, bonds, and more—quickly switching between virtual and traditional markets, selecting suitable investment products to manage market volatility and ride out both bull and bear cycles.

*Limited to Professional Investors (PI) only.

How do I top up my cryptocurrency account?

Click "Account," then select "All – Cryptocurrency – Deposit." Follow the system prompts to enter the total deposit amount and the deposit address generated by the system, and use your existing personal cryptocurrency wallet to initiate the transfer and complete the deposit verification. Typically, the funds will be credited within 24 hours.