Bitcoin Ordinals NFT Guide for Beginners 2026

What Are Bitcoin Ordinals?

Bitcoin Ordinals are a system for numbering individual satoshis, the smallest unit of Bitcoin, and attaching data to them. A single Bitcoin is composed of 100 million satoshis, and the Ordinals protocol assigns a unique sequential number to each satoshi based on the order it was mined. This numbering system transforms each satoshi from an interchangeable unit of currency into a uniquely identifiable digital artifact that can carry inscribed data — images, text, audio, video, HTML, or even entire applications.

Created by Casey Rodarmor and launched in January 2023, the Ordinals protocol does not require any changes to the Bitcoin protocol itself. It works entirely within Bitcoin's existing rules, leveraging the Taproot upgrade (activated in November 2021) and the witness data space in Bitcoin transactions to store inscribed content. This means ordinals are as permanent and decentralized as Bitcoin itself — they cannot be censored, removed, or modified once inscribed on the blockchain.

The term "ordinal" refers to the numbering system (ordinal numbers: first, second, third) that gives each satoshi its unique identity. The term "inscription" refers to the data attached to a specific ordinal satoshi. Together, they create what many call "Bitcoin-native NFTs," although purists prefer the term "digital artifacts" because ordinals differ from traditional NFTs in several fundamental ways that we will explore throughout this guide.

Since their launch, over 70 million inscriptions have been created on Bitcoin, generating hundreds of millions of dollars in transaction fees for Bitcoin miners and establishing an entirely new creative and collectible economy on the world's most secure blockchain. Whether you view ordinals as the future of digital art, a natural evolution of Bitcoin, or simply an interesting experiment, they have undeniably changed the Bitcoin landscape permanently.

How Ordinals and Inscriptions Work

Understanding how ordinals work requires grasping two separate but connected concepts: the ordinal numbering system and the inscription mechanism.

The Ordinal Numbering System

Every satoshi that has ever been mined receives a unique ordinal number based on when it was created. The first satoshi ever mined (in the genesis block) is ordinal number 0. The second is ordinal number 1. This continues sequentially through every satoshi that will ever exist — all 2.1 quadrillion of them (21 million BTC times 100 million satoshis each).

The ordinal number is not stored anywhere on the blockchain. It is a mathematical convention — a way of tracking individual satoshis as they move through transactions. The Ordinals protocol defines rules for how ordinal numbers transfer when Bitcoin moves from one address to another, using a first-in-first-out system. When a transaction sends Bitcoin, the ordinal numbers of the input satoshis map to the output satoshis in order.

Satoshi Rarity

The Ordinals protocol defines a rarity system based on significant Bitcoin events, creating different tiers of collectible satoshis:

• Common: Any satoshi that is not the first of its block. There are approximately 2.1 quadrillion of these.
• Uncommon: The first satoshi of each block. There will be roughly 6.93 million of these, one per block.
• Rare: The first satoshi of each difficulty adjustment period (every 2,016 blocks). There will be approximately 3,437 of these.
• Epic: The first satoshi of each halving epoch. There will only ever be 32 of these (one per halving, and there are 32 halvings total).
• Legendary: The first satoshi of each cycle (a concept combining halving epochs and difficulty adjustments). There will only ever be 5 of these.
• Mythic: The first satoshi of the genesis block. There is exactly 1 of these, and it is unspendable.

This rarity system creates a natural collectibles market around specific satoshis, independent of any inscribed content. Rare and epic satoshis trade for significant premiums purely based on their ordinal number and the Bitcoin event they represent.

The Inscription Process

An inscription is created by embedding data into a Bitcoin transaction using the Taproot witness data field. When you inscribe an ordinal, you are attaching content — an image, text, audio, or any other data type — to a specific satoshi. That content is permanently stored on the Bitcoin blockchain and is forever associated with that particular satoshi's ordinal number.

The technical process involves creating a Taproot script that contains the inscription data in its witness section. The data is stored in a serialized format that includes a content type (MIME type) and the raw content bytes. When a Bitcoin node processes the transaction, the inscription data is validated and stored as part of the blockchain's permanent record.

The maximum size of an inscription is limited by Bitcoin's block size — approximately 4 MB in a single block (though theoretical limits are slightly lower due to transaction overhead). In practice, most inscriptions are much smaller. Image inscriptions typically range from a few kilobytes to a few hundred kilobytes. Text inscriptions can be as small as a few bytes. The cost of inscribing scales with the data size because larger inscriptions require more block space, which translates to higher transaction fees.

Ordinals vs. Traditional NFTs

While ordinals are often called "Bitcoin NFTs," they differ from Ethereum-based NFTs (ERC-721 tokens) and NFTs on other smart contract platforms in several significant ways:

The most significant difference is data storage. Traditional NFTs on Ethereum typically store only a pointer (URL or hash) on-chain, with the actual media file hosted on IPFS, Arweave, or a centralized server. If the storage provider goes down or the IPFS pin expires, the NFT can become a link to nothing. Ordinal inscriptions store the actual content data directly on the Bitcoin blockchain, making them truly permanent and immutable as long as Bitcoin exists.

This permanence is both the greatest strength and a significant limitation of ordinals. The content can never be modified, updated, or removed. There are no smart contracts to add utility, change metadata, or implement complex mechanics. What is inscribed is final. This simplicity appeals to those who value permanence and true digital ownership, while it frustrates those who want the programmability of smart contract-based NFTs.

Types of Ordinal Inscriptions

Ordinals support any data type that can be represented as bytes with a MIME type, creating a diverse ecosystem of digital artifacts on Bitcoin.

Image Inscriptions

The most common type of ordinal inscription. Artists and collections inscribe images in formats including PNG, JPEG, GIF, SVG, and WebP. Pixel art and generative art dominate due to their small file sizes, which keep inscription costs manageable. Collections like Bitcoin Punks, Ordinal Penguins, and NodeMonkes have established themselves as blue-chip ordinal collections with significant secondary market value.

Text Inscriptions

Plain text inscriptions range from single words to full documents. The BRC-20 token standard was built on text inscriptions — JSON-formatted text that defined token deployments, mints, and transfers. While BRC-20 has been largely superseded by the more efficient Runes protocol for fungible tokens, text inscriptions remain popular for poetry, messages, and on-chain data storage.

HTML and Interactive Inscriptions

Some of the most innovative ordinals are full HTML pages inscribed on Bitcoin. These can include CSS styling, JavaScript logic, and interactive elements — effectively creating permanent, decentralized web pages and applications that live on the Bitcoin blockchain. Recursive inscriptions take this further by referencing other inscriptions, allowing complex applications to be built from modular on-chain components.

Audio and Video Inscriptions

Music, sound effects, and short video clips can be inscribed as ordinals, though the 4 MB block size limit restricts the length and quality. Musicians have inscribed songs and albums on Bitcoin, creating permanent, uncensorable digital music releases. Video inscriptions are typically short clips or animations due to file size constraints.

Recursive Inscriptions

Recursive inscriptions reference other inscriptions using their inscription IDs, similar to how web pages reference external resources. This enables modular, composable content on Bitcoin — a base layer inscription might contain a rendering engine, while child inscriptions contain unique data that the engine renders. This pattern has enabled generative art collections, on-chain games, and complex applications to exist entirely on Bitcoin despite the block size limitations.

Best Wallets for Bitcoin Ordinals

Not every Bitcoin wallet supports ordinals. Because ordinals track individual satoshis, you need a wallet that is "ordinals-aware" — one that understands which satoshis carry inscriptions and prevents you from accidentally spending them as regular Bitcoin. Using a non-ordinals wallet risks losing your inscriptions if the wallet spends the inscribed satoshi as part of a regular transaction.

Setting Up Your First Ordinals Wallet

For beginners, Xverse is the recommended starting point. Download the Xverse app on mobile or install the browser extension. During setup, you will generate a new seed phrase — 12 or 24 words that serve as your master backup. Write this down on paper immediately and store it in a secure location. Xverse automatically creates separate addresses for Bitcoin payments, ordinals, and Runes, which prevents the accidental spending problem that plagues non-ordinals wallets.

Once your wallet is set up, you will need to fund it with a small amount of BTC for transaction fees. Most ordinal purchases and transfers require fees in the range of a few thousand to tens of thousands of satoshis, depending on network congestion. Send BTC to your wallet's Bitcoin payment address (not the ordinals address) to fund future transactions.

Top Ordinals Marketplaces in 2026

The ordinals marketplace ecosystem has consolidated significantly since 2023, with a few dominant platforms emerging alongside specialized niche marketplaces.

Magic Eden

Magic Eden expanded from Solana to become the leading multi-chain NFT marketplace, and their Bitcoin ordinals marketplace has become the highest-volume platform in the ecosystem. The interface is polished and familiar to anyone who has used NFT marketplaces on other chains. Magic Eden supports collection-based browsing, trait filtering, rarity rankings, and direct offers. Their aggregation engine also pulls listings from other marketplaces, giving buyers access to the broadest possible inventory.

OKX Marketplace

The OKX exchange's built-in NFT marketplace offers ordinals trading with the advantage of deep liquidity from OKX's massive user base. For users who already have OKX accounts, the seamless integration between exchange balances and marketplace purchases makes buying ordinals straightforward. OKX also supports BRC-20 and Runes trading within the same interface.

Gamma.io

Gamma is a Bitcoin-native marketplace focused specifically on ordinals and the Stacks ecosystem. They offer a no-code inscription tool that makes creating ordinals accessible to non-technical users — upload your file, pay the inscription fee, and Gamma handles the rest. Their marketplace emphasizes curation and artist profiles, creating a more gallery-like experience compared to the trading-focused platforms.

OrdinalsBot

OrdinalsBot specializes in the inscription side of the ordinals ecosystem. While they operate a marketplace, their primary value proposition is their inscription service, which offers bulk inscriptions for collections, text inscriptions for BRC-20 tokens, and recursive inscription support. For creators looking to launch collections, OrdinalsBot provides the technical infrastructure.

Ordinals Wallet

A dedicated marketplace and portfolio tracker that provides a clean interface for browsing, buying, and managing ordinal inscriptions. Ordinals Wallet focuses on user experience and includes analytics tools for tracking collection floor prices, volume trends, and individual inscription provenance.

How to Buy Your First Ordinal

Purchasing your first ordinal is a straightforward process once you have a compatible wallet set up and funded. Here is a step-by-step walkthrough:

1. Set up an ordinals-compatible wallet. Install Xverse, Leather, UniSat, or another compatible wallet. Secure your seed phrase offline.
2. Fund your wallet with BTC. Send Bitcoin to your wallet's payment address from an exchange or another wallet. You will need enough to cover the ordinal's purchase price plus transaction fees.
3. Browse a marketplace. Visit Magic Eden, OKX, or Gamma.io and browse ordinal collections. Filter by price, collection, or inscription type to find something that interests you.
4. Connect your wallet. Click the wallet connect button on the marketplace and approve the connection in your wallet extension or app.
5. Purchase the ordinal. Click "Buy" on your chosen inscription, review the transaction details (including the total cost with fees), and confirm the transaction in your wallet.
6. Verify receipt. After the transaction confirms (typically within 10 to 60 minutes depending on the fee rate), check your wallet's ordinals tab to see your new inscription.

How to Create (Inscribe) an Ordinal

Creating your own ordinal inscription means permanently adding data to the Bitcoin blockchain. This process is called "inscribing," and it requires preparing your content, selecting an inscription service, and paying the Bitcoin network fee.

Step 1: Prepare Your Content

Decide what you want to inscribe. For images, optimize the file size — smaller files cost less to inscribe because they consume less block space. A 50 KB PNG will cost significantly less than a 500 KB PNG. For pixel art or simple graphics, SVG format can dramatically reduce file size while maintaining quality. Text inscriptions are the cheapest, often costing just a few thousand satoshis to inscribe.

Step 2: Choose an Inscription Service

Several platforms simplify the inscription process. Gamma.io offers a drag-and-drop interface. OrdinalsBot handles bulk inscriptions for collection launches. UniSat's inscription tool supports various data types. Each service charges a service fee on top of the Bitcoin network fee. Compare fees across platforms before proceeding, as they can vary significantly.

Step 3: Set Your Fee Rate

The Bitcoin network fee is measured in satoshis per virtual byte (sat/vB). Higher fee rates mean faster confirmation, while lower rates save money but may take hours or days to confirm during busy periods. Check current fee rates on mempool.space and choose a rate appropriate for your urgency.

Step 4: Inscribe and Confirm

Upload your content, select your fee rate, and initiate the inscription transaction. The service will create the transaction, and you will approve the payment from your wallet. Once confirmed on the blockchain, your inscription is permanent. You will receive the inscribed satoshi in your ordinals wallet address.

Notable Ordinal Collections

The ordinals space has produced several collections that have achieved significant cultural and financial value within the Bitcoin community.

Bitcoin Punks: A tribute collection to CryptoPunks inscribed on Bitcoin. These 10,000 pixel art characters hold historical significance as one of the first major profile picture (PFP) collections on ordinals.

NodeMonkes: A 10,000-piece pixel art PFP collection that became one of the highest-value ordinal collections. NodeMonkes established that ordinals could support the same collection-based culture that thrived on Ethereum.

Quantum Cats: Created by the Taproot Wizards team, this collection combines art with Bitcoin advocacy, promoting protocol development and the ordinals ecosystem.

Ordinal Maxi Biz (OMB): A community-driven collection that became a cultural touchstone for Bitcoin maximalists who embraced ordinals. Holding an OMB signals membership in a specific Bitcoin subculture.

Bitcoin Frogs: A 10,000-piece collection that became one of the most traded ordinal collections by volume. Bitcoin Frogs proved that memetic appeal translates to value in the ordinals market just as it does in other NFT ecosystems.

SpunkArt ME Collection: The digital art collection from the team behind SPUNK·BET, featuring unique pieces inscribed on Bitcoin as permanent ordinal artifacts. These are periodically given away as prizes and tournament rewards on the SPUNK·BET platform.

Ordinals, Runes, and the Bitcoin Ecosystem

The Ordinals protocol did more than create Bitcoin NFTs — it sparked an entire ecosystem of innovation on Bitcoin. The most significant development to emerge from the ordinals movement is the Runes protocol, created by the same developer, Casey Rodarmor.

While ordinals handle non-fungible assets (unique digital artifacts), Runes handle fungible tokens (interchangeable units like SPUNK·BET runes). Together, they provide Bitcoin with a complete token ecosystem — something that previously required separate blockchains like Ethereum or Solana.

How They Work Together

Ordinals and Runes share the Bitcoin blockchain but serve different purposes. An artist might inscribe a unique piece of art as an ordinal while simultaneously launching a fungible Runes token for their community. A gaming platform like SPUNK·BET uses Runes for its in-game currency while potentially offering ordinal inscriptions as unique prizes and collectibles.

The BRC-20 token standard, which preceded Runes, was built on top of the ordinals inscription mechanism — each BRC-20 operation was a text inscription. Runes replaced this approach with a more efficient protocol that uses Bitcoin's native UTXO model, reducing blockchain bloat and improving performance. However, BRC-20 inscriptions remain on-chain permanently, creating an interesting archaeological layer in Bitcoin's history.

Risks and Considerations

Before diving into ordinals, understand the risks and limitations that come with this new asset class.

Market Volatility and Liquidity

Ordinals are highly speculative assets with significant price volatility. Collections that trade at high floors today may lose most of their value tomorrow. Liquidity is often thin — unlike fungible tokens, selling an individual inscription requires finding a specific buyer willing to pay your asking price. During market downturns, ordinals can become effectively unsellable at any reasonable price.

Technical Risks

Sending ordinals to a non-ordinals wallet can result in the inscribed satoshi being spent as regular Bitcoin, effectively destroying the inscription's association with your address. Always use ordinals-compatible wallets and double-check addresses before sending. There is no undo button on the Bitcoin blockchain.

Fee Volatility

Bitcoin transaction fees fluctuate dramatically based on network demand. Inscribing during high-fee periods can cost ten to fifty times more than inscribing during quiet periods. Plan inscriptions and purchases during low-fee windows when possible. Use fee estimation tools to avoid overpaying.

Regulatory Uncertainty

The regulatory treatment of ordinals varies by jurisdiction and remains uncertain in many regions. Some regulators may classify certain inscriptions as securities, collectibles, or digital art, each with different tax and compliance implications. Consult with a qualified professional about the regulatory implications in your jurisdiction before making significant purchases.

Permanence as a Double-Edged Sword

Once inscribed, content cannot be modified or removed from the Bitcoin blockchain. This permanence is a feature for art and collectibles, but it means mistakes are also permanent. Verify all content thoroughly before inscribing, and understand that you are adding data to a public, permanent ledger.

Frequently Asked Questions

Do I need to own a full Bitcoin to buy ordinals?

No. Ordinals are denominated in satoshis, and many are available for just a few thousand to a few hundred thousand satoshis (fractions of a cent to a few dollars). You only need enough BTC to cover the purchase price plus the network transaction fee.

Are ordinals bad for Bitcoin?

This is a heated debate within the Bitcoin community. Critics argue that inscriptions bloat the blockchain and compete with financial transactions for block space. Supporters argue that ordinals increase miner revenue through fees (which becomes increasingly important as block rewards diminish through halvings), drive adoption, and demonstrate Bitcoin's versatility. Both perspectives have merit, and the debate continues to shape Bitcoin development discussions.

Can ordinals be deleted or censored?

No. Once inscribed on the Bitcoin blockchain, ordinal content is permanent and cannot be removed by anyone, including the original creator. This is a fundamental property of Bitcoin's immutable ledger. The content exists on every full node that maintains a copy of the blockchain.

What happens to ordinals if Bitcoin's price crashes?

The inscriptions remain on the blockchain regardless of Bitcoin's price. The dollar-denominated value of ordinals will fluctuate with both Bitcoin's price and the market demand for the specific inscription or collection. Like all speculative assets, ordinals can lose value significantly during market downturns.

Can I inscribe anything on Bitcoin?

Technically, any data that fits within Bitcoin's block size limits can be inscribed. However, many marketplaces and explorers moderate content and may not display inscriptions that violate their terms of service. The blockchain itself does not censor, but the tools people use to view and trade inscriptions may.

How do I know if an ordinal is authentic?

Every ordinal inscription has a unique inscription number and transaction ID that can be verified on blockchain explorers. Marketplaces verify collections and display verified badges. Always check the inscription's provenance — its creation transaction, the creator's wallet, and the collection's official channels — before purchasing, especially for high-value items.

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