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Satoshi

A satoshi, often shortened to sat, is the smallest unit of a bitcoin. One bitcoin consists of 100,000,000 satoshis.

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What is a satoshi?

You don’t have to buy or send a whole bitcoin. You can also use a small number of sats. This makes Bitcoin more practical for small amounts.

One satoshi is equal to 0.00000001 BTC. The name comes from Satoshi Nakamoto, the pseudonym of Bitcoin’s creator.

An example of a satoshi

Suppose you want to send someone a small amount of Bitcoin. Instead of saying 0.00002 BTC, you can say you’re sending 2,000 sats.

That’s easier to read and understand. Sats work a bit like cents in a dollar, but Bitcoin can be divided into much smaller units.

Why is a satoshi important in crypto?

Sats make small Bitcoin payments possible, such as a tip or payment for an online service. They’re also used for network fees: the costs you pay to have a Bitcoin transaction processed.

You’ll also see sats used on the Lightning Network. This is a network built on top of Bitcoin that can make payments faster and cheaper. For small amounts, sats are often more convenient than whole bitcoins.

In news about the Bitcoin price, the value of a sat in euros can change. That doesn’t mean sats have a different relationship to Bitcoin: one sat is always one hundred-millionth of a bitcoin.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.