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What is Satoshi (SATS)?

Mar 05, 2024
byNDAX Labs

A beginner’s guide to Bitcoin Satoshis

Named after Bitcoin's mysterious creator, Satoshi Nakamoto, a Satoshi (or Sat) represents the smallest fraction of a Bitcoin, allowing transactions in even the most minor amounts of the cryptocurrency. To understand the scale, imagine one Bitcoin divided into 100,000,000 parts—each one of those parts is a Satoshi. In numerical terms, this means one Satoshi is equal to 0.00000001 Bitcoin. This division enhances Bitcoin's divisibility, ensuring you can participate in the cryptocurrency space regardless of budget size.

Why Satoshis are Essential?

Satoshis play a pivotal role in the practical application of Bitcoin for everyday transactions. As the value of Bitcoin increases, the granularity provided by Satoshis makes it feasible to conduct transactions for everyday items without resorting to awkward fractions of Bitcoin. This ease of use is critical for Bitcoin's adoption as a medium of exchange for all scales of transactions, from buying a cup of coffee to making significant purchases.

Understanding Satoshis: Bitcoin's Building Blocks

Imagine Satoshis as pennies to Bitcoin's dollar. Just like there are 100 pennies in a dollar, there are 100,000,000 Satoshis in one Bitcoin. This means you can use Satoshis to make small Bitcoin transactions, similar to how you use pennies for small purchases, making it easier to buy and sell things with Bitcoin.

Converting Between Bitcoin and Satoshis

Conversion between Bitcoin and Satoshis is straightforward: multiply the amount of Bitcoin by 100,000,000 to find its equivalent in Satoshis. For instance, 0.01 Bitcoin equals 1,000,000 Satoshis. This conversion simplifies the mathematics behind small-scale Bitcoin transactions, making the cryptocurrency accessible to beginners and seasoned investors alike.

Frequently Asked Questions

  • What is a Satoshi? The smallest unit of Bitcoin, enabling transactions in minor fractions of the cryptocurrency.
  • How many Satoshis are in a Bitcoin? There are 100 million Satoshis in one Bitcoin, facilitating detailed and small-scale transactions.
  • Why are Satoshis important? They ensure Bitcoin's practicality for daily transactions, making the cryptocurrency accessible and usable for a broader audience.
  • How do you use Satoshis? Satoshis can be bought on cryptocurrency trading platforms like NDAX and used for transactions wherever Bitcoin is accepted, providing a gateway to the digital currency world without a significant investment.


Satoshis are more than just a unit of measurement; they symbolize the adaptability and inclusiveness of Bitcoin, making it a viable currency for transactions of all sizes. Understanding Satoshis is crucial for anyone navigating the digital currency landscape, highlighting the potential of cryptocurrencies to revolutionize how we think about and use money in our increasingly digital world.