The Bitcoin you buy will remain in your exchange account until you transfer it to a wallet that you control. You might be able to send it directly to someone else through your exchange account, but using your own wallet is more secure. Do a little research before you settle on an exchange. You want one with a strong reputation and top-notch security. If you’re not comfortable using an exchange, you can also buy Bitcoin through a Bitcoin ATM using your national currency. [2] X Research source
An online wallet is most similar to an online bank account, with a similar user interface and features that allow you to transfer Bitcoin. A software wallet usually has an interface similar to an online wallet, but it’s not online. Instead, you download the software to your computer. This makes it a little more secure than an online wallet. Physical wallets, or hardware wallets, typically come with software that you use to manage the Bitcoin in the wallet. The Bitcoin itself is stored on a physical device offline. It’s more secure, but a bit more cumbersome to use for transactions because you have to first connect it to your computer.
When you’re using a transfer service, you usually get a wallet address from the service. This is usually a “hosted wallet,” meaning the transfer service is simply holding the Bitcoin there until the person retrieves it. Simple online wallets are free to use, so it shouldn’t cost them anything to get that set up. If the person is new to cryptocurrency, though, you might want to help them get started.
The person you’re sending Bitcoin to doesn’t need to have the same type or brand of wallet as you either. You can send an email to a Gmail address from a Yahoo account, right? Bitcoin works the same way. [6] X Research source
You can always have more than one wallet, so if you’re planning to be out and about and what to have Bitcoin on you, transfer a small amount to an online or mobile wallet.
Mobile wallets typically also allow you to scan a QR code, which makes it a lot easier to make sure you’ve got the public address correct. You can also have the person copy their public address for you and send it in an email—then you can just copy and paste it into the blank. The process works the same if you’re simply transferring your Bitcoin from one wallet to another that you also own. Most wallets have a separate “transfer between wallets” feature that allows you to do this without paying any fees.
This is a great option if you want to send Bitcoin to someone who isn’t all that familiar with cryptocurrency because they can get local currency out of the ATM in exchange for the Bitcoin you sent. You can create a Bitcoin wallet for them and send them the QR code for the wallet so they can access it from the ATM. Even if you don’t own any Bitcoin yourself, you can buy Bitcoin from the ATM with local currency, then send the Bitcoin to someone else. They can then pick up the Bitcoin at an ATM near them and cash it out for local currency if they choose.
You don’t have any ability to choose the miner or mining company that confirms your transaction, so it all comes down to the amount of the fee. Essentially, a higher fee incentivizes a miner to pick up that transaction. Many wallets allow you to set a transaction fee yourself. However, keep in mind that the lower the transaction fee you set, the longer it could potentially take for your transaction to go through. [11] X Research source
If you’re looking for confirmation, scroll down to the details of the transaction and look at “status. " If it says “confirmed” in green letters, that means you’re good to go![13] X Research source Keep in mind that it might take several days for your transaction to be confirmed, depending on the size of the transaction fee you paid. [14] X Research source
This is why it’s so important to double- and triple-check all of the information you provided before you click “send” to initiate the transaction. If the transaction hasn’t been confirmed at all, you might be able to cancel it through your wallet. However, after it has one confirmation, it becomes irreversible. [16] X Research source
For example, suppose you’re buying a couch from a neighbor and want to pay them in Bitcoin. You’ve agreed on a price of $200. When you pull up an online calculator, you see that one Bitcoin is worth $39,820. 24. If you divide $200 by the total value, you get 0. 005. When you plug 0. 005 Bitcoin into the calculator, though, it tells you that’s worth $199. 45. You’d need to send 0. 006 Bitcoin ($239. 34) to cover the $200 price. What happens if you send more than you need? You can specify how that’s handled. Either you’ll get change back in the form of another Bitcoin transaction back to your wallet or you can use it as a transaction fee. [18] X Research source
Some cryptocurrency exchanges limit the amount you can withdraw from your account. These daily and monthly limits may change depending on how long you’ve had your account and how much trading you do. For example, Kraken limits beginners to $5,000 in withdrawals over a 24-hour period, while experienced traders at the “pro” level can make up to $10 million in withdrawals per day. [20] X Research source
