Bitcoin is a digital currency and a payment system. It works without a central authority. It was launched by a person or a group of people called Satoshi Nakamoto. They shared its concept in a whitepaper on an online forum.
Bitcoin does not depend on banks or governments. It allows people to exchange value directly with each other. You can use Bitcoin as an alternative to traditional money or invest in it through cryptocurrency exchanges. Transactions occur on a peer-to-peer network that tracks and secures every exchange. This is why we call Bitcoin decentralized.
The system uses blockchain technology to operate. Blockchain records transaction histories, and they are available for viewing for everybody in the network. This is why we call Bitcoin transparent.
People may choose to send Bitcoin instead of fiat money for several reasons.
- Bitcoin operates on a decentralized network, and no government controls it. The network consists of many computers (nodes) that verify transactions, create blocks from them, and add these blocks to the blockchain. In contrast, fiat currencies like dollars or euros are centralized because governments and central banks control them. They decide when to print money and how to regulate its supply.
- Bitcoin has a fixed supply of 21 million coins. This scarcity can increase its value over time. New coins are created through mining. In this process, users solve mathematical problems to validate transactions.
- Fiat currencies have no limit on supply. Central banks can print more money when they see fit. This can cause inflation, which reduces the value of money over time.
- Bitcoin transfers do not rely on banks or intermediaries. Transactions occur directly between users.
- For international or large transfers, Bitcoin often costs less than traditional bank fees or currency exchange rates. Sending Bitcoin to any part of the world is also much faster than using a bank transfer.
- Bitcoin uses cryptographic methods to secure transactions. These methods protect coins against fraud.
What Is Needed to Transfer Bitcoins
You need a Bitcoin wallet and a wallet address to send Bitcoin. The Bitcoin wallet address is a line of symbols and consists of 26 to 35 characters long. It's like your account number, and it lets you interact with the Bitcoin network.
Your Bitcoin wallet uses two keys:
- Public Key: This identifies your account and creates the wallet address.
- Private Key: This is like a password that controls your Bitcoin and lets you authorize transactions.
When you want to send Bitcoin, you’ll use a simplified version of your public key as your address. It makes it easier to share without compromising security.
Your wallet generates a new address for every new transaction. It is done to protect your money. Old addresses stay valid but if you use a new address, it will make the operations safer. This is important especially if you use an online wallet, where hackers could track your private key.
Here’s how you send Bitcoin step-by-step:
- Provide the recipient’s Bitcoin address
Copy the wallet address where you want to send the coins. Double-check it because Bitcoin transactions can’t be reversed. - Type in the sum to send
Choose how much Bitcoin to send. Check first if you have enough in your wallet to cover both the amount and the transaction fee. - Confirm and send
Once you’ve entered the details, confirm the transaction. Your private key signs the transaction, and after that, the wallet will send it to the Bitcoin network. From there, miners verify it, and it gets added to the blockchain.
Most Bitcoin transactions aren’t free. You’ll need to pay a network fee to the miners who process and verify the transaction. The fee can be higher if the blockchain is busy. Some wallets might let you transfer Bitcoin without a fee, but they might not give you full control of your Bitcoin.
How to Choose a Platform for Transferring Bitcoins
You can send Bitcoin through a reliable exchange, or you can send BTC from your wallet. If you don’t have a wallet, here are some good options from which you can choose.
The best wallets for sending Bitcoin are the following.
Trust Wallet
Trust Wallet was developed by Binance. This is why you can buy, sell, and trade cryptocurrencies directly from this wallet. Trust Wallet supports over 100 blockchains and millions of coins, this is why you for sure will find there practically any cryptocurrency you need.
Exodus
Exodus is a popular multichain wallet for desktop and mobile users. There, you can benefit from such features as live charts, portfolio tracking, 24/7 customer support, and an integrated exchange for trading thousands of digital assets. It even supports NFTs.
The wallet offers commission-free transactions for cryptocurrencies like Bitcoin and Solana and fiat currencies such as USD, EUR, and GBP. This wallet integrates with Trezor which is one of the best hardware wallets. So, you can manage your crypto also offline.
Electrum
Electrum was launched two years after the Bitcoin launch. It supports the Bitcoin Lightning Network, cold storage wallets, and even integrates with such popular hardware wallets like Ledger and Trezor.
Electrum provides customer support through online resources. It also offers extensive documentation, FAQs, Reddit forums, and a bitcointalk.org inquiry page.
Other options include hardware wallets Ledger, Trezor, and others, even though they are more recommended for holding coins rather than moving them around. You can also choose to send Bitcoins through a cryptocurrency exchange. You can opt for transferring Bitcoins through the Binance exchange, Coinbase, or AddUp.
How to Send Bitcoins
Now, let’s have a look at how to send Bitcoins to another address.
Step 1: Open your sending wallet
Log into the wallet where your Bitcoin is stored. Check if the wallet is secure and easy for you to use. Look for the “Send” or “Transfer” option.
Check whether you have enough Bitcoin to cover the transfer and any required fees.
Step 2: Enter the recipient’s address
Type in of copy-paste the wallet address of the person or account receiving the Bitcoin. Many wallets let you scan a QR code or paste the address directly.
Step 3: Check the network fees
Decide how much Bitcoin to send. Before confirming, check the Bitcoin network fee. This fee pays for processing your transaction and varies based on network activity. Setting the Bitcoin transfer fee higher than average will make your transaction processing faster.
Step 4: Review and confirm
Take a moment to review all details of the transaction: the recipient’s address, the Bitcoin amount, and the total fees. Confirming a Bitcoin transaction is a final step, do it only when you are sure everything is correct. Complete any final steps, such as entering a two-factor authentication Bitcoin code, if required.
How to Secure Your Bitcoin Transfer
Here are some tips to help you secure Bitcoin transfer.
- Checking Bitcoin address before sending is crucial: Even one symbol mistaken in the address can result in the permanent loss of your Bitcoin.
- Check network activity: Know the current state of the Bitcoin network to avoid high fees or long delays.
- Be aware of fees: Understand how much the transaction will cost and ensure the recipient gets the expected amount.
- Use a secure connection: Always make transactions over a private and secure internet connection.
- Ensure wallet compatibility: Confirm that both wallets support Bitcoin before starting the transfer.
- Test with a small amount: If it’s a new address, sending test amount of Bitcoins is recommended first to ensure everything works correctly.
- Do not share private keys with anybody: Make sure you know the basics of how to avoid phishing attacks and never share your private keys and passwords.
FAQ
What to do if my Bitcoin transaction is stuck?
If you use a hardware wallet, it happens mostly because the fee is not high enough to make your transaction included in a new block. Increase the gas fee to speed up the transaction processing. Reducing gas fees may slow down the processing of your transaction significantly.
How to check the Bitcoin transaction status?
Checking Bitcoin transaction status is available directly in the Bitcoin blockchain explorer.