Bitcoin is a decentralized digital currency created in January 2009. … Bitcoin is known as a type of cryptocurrency because it uses cryptography to keep it secure. Each Bitcoin is basically a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer. People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people. Every single transaction is recorded in a public list called the blockchain.