Crypto

What is Bitcoin? And Ethereum?

Bitcoin and Ethereum are the two biggest coins. Here is what they are and why their prices move, without the tech talk.

Updated Oct 31, 2026

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What is Bitcoin?

Bitcoin (BTC) is digital money that no bank or government runs. It started in 2009. Thousands of computers around the world keep one shared record of who owns which bitcoin, so nobody can spend the same coin twice.

  • You can send it to anyone in the world, any time.
  • You can own a tiny piece: $100 buys about 0.00129 BTC at $77,500.

Why does Bitcoin have any value?

Like anything, it is worth what people will pay for it. Two things push its price: there can only ever be 21 million bitcoin, and many people want some.

What happensCoins for salePrice
More people want to buySameGoes up
More people want to sellSameGoes down
Nobody can print moreLimited to 21 millionScarcity supports the price

Nothing guarantees a price. If people stop wanting it, it falls, and it has fallen by more than half several times before.

What is Ethereum?

Ethereum is a network that runs apps, not just payments: trading apps, games, digital art and more. Its coin, ether (ETH), pays the small fee each time someone uses one of those apps.

How are they different?

Bitcoin (BTC)Ethereum (ETH)
Main jobDigital money, a store of valueRuns apps on its network
How manyNever more than 21 millionNo fixed limit
Started20092015
SizeThe biggest coinThe second biggest

Why do their prices move so much?

  • News: new rules, big companies buying, or hacks at exchanges.
  • Mood: when people feel excited they buy; when scared they sell.
  • Big holders: one large sale can push the price down for a while.
Bitcoin moves$100 of Bitcoin becomes
up 3%$103
down 3%$97
down 10% in a bad day$90

Which one should I buy?

Nobody can tell you which will do better, and this is not advice. A good way to learn is to try both with practice money and compare.

Practice: $500 of BTC and $500 of ETH.
Check both after a week: which moved more, and which way?