Crypto enthusiasts are usually quick to point out the benefits of using Bitcoin. Some users are drawn to it for the lack of banking fees, pseudonymous transactions, and complete user autonomy.
But for the average person, one of the best perks of Bitcoin is how easy it is to send it to other users and to businesses that accept this digital currency.
The only prerequisite is to have a Bitcoin wallet. Send button is typically the most prominent feature in most crypto wallets. Still, before sending Bitcoin to anyone, it can be helpful to understand how the entire process works.
How Does Sending Bitcoin Work?
In practice, sending Bitcoin is as simple as sending an email. You set an amount you want to send and choose the outgoing address.
However, the exact steps may vary depending on what type of Bitcoin wallet you’re using. Hot wallets, and especially web wallets, make this process pretty straightforward.
While with cold storage wallets, there’s usually an extra step or two involved. The most essential information the senders need is the Bitcoin address of the recipient.
The person or business you’re sending money to will have to copy an alphanumerical code containing anywhere between 26 and 36 characters and forward it to you.
Also, the Bitcoin address may be displayed as a QR code which makes sending Bitcoin even more manageable, especially via mobile apps. When sending any cryptocurrency, there are several vital facts to keep in mind:
- Every digital currency has a different type of address.
- All crypto transactions are irreversible.
- It takes anywhere from a few seconds to a few minutes for the funds to appear in the recipient’s wallet.
- The recipient doesn’t have to use the same type or brand of crypto wallet to complete the transaction.
Understanding Bitcoin Transaction Fees
While setting up a Bitcoin wallet is typically free of charge, sending funds require a processing fee. This is often called the “gas fee”, and factors such as borders don’t affect it. You could be sending Bitcoin to someone in the same room or worldwide, it wouldn’t impact the fee rates.
The matter of Bitcoin transaction fees is somewhat controversial. As the adoption of the original cryptocurrency grew, so did the transaction fees.
Still, sending crypto is more affordable than paying hefty banking fees. Some crypto wallets and exchanges have flat rates for transactions, and others allow users to determine the price they’re willing to pay.
Naturally, transactions with higher rates are picked up by miners that verify them faster, and those with very low fees might even get stuck in the mempool.
How to Be Sure Transaction Was Completed?
One of the features of Bitcoin is that every single recorded transaction is available for review on the blockchain. This type of transparency protects users from fraud and gives everyone peace of mind that the funds have been sent to the correct location.
When funds are sent, users receive a transaction ID which allows them to check whether it was confirmed. To track a specific transaction on the blockchain, Bitcoin users can find it on one of many blockchain explorers. These platforms show the amount sent in digital currency, fiat currency, and the exact time and date.
Sending Funds via Bitcoin ATMs
Using a Bitcoin ATM is great when you’re in a hurry to make a withdrawal. But it’s also a convenient tool for sending Bitcoin to those who don’t use cryptocurrency.
You have to create a Bitcoin wallet, send the funds to their address, and get the money from a Bitcoin ATM.
One of the challenges of this method is knowing where to find an ATM that supports Bitcoin transactions. You can use a crypto ATM locator and make sure this option works for you.
Sending Bitcoin Safely and Efficiently
There are hundreds of thousands of Bitcoin transactions verified every day. And while Bitcoin has some scalability issues, it’s still the biggest and most widely used cryptocurrency in the world.
The process of sending Bitcoin is relatively simple, and anyone with a Bitcoin wallet and access to the internet can do it. Completing these transactions is not the same as trading and investing in cryptocurrency.
Some people want the option of paying with Bitcoin online and avoiding expensive processing fees. Others like the opportunity to gift Bitcoin to users who might not even be interested in holding Bitcoin.