One of the reasons people appreciate cryptocurrency is that you can send and receive Bitcoin instantly no matter where you are in the world. For Bitcoin transactions, international borders are not relevant.
You can pay the same fee when sending Bitcoin in Australia as when sending funds to someone sitting next to you. But if you’ve never owned or spent Bitcoin before, it’s essential to understand the mechanics of this process.
A transaction fee plays a significant role in how you’ll send Bitcoin to someone and how fast you’ll receive payment. So, let’s look at all the vital elements of sending Bitcoin to another person.
Buying Bitcoin
The first step to sending Bitcoin to someone is to have some in the first place. Perhaps you already have valuable digital assets, but if you don’t, you’ll need an account on a Bitcoin exchange platform. Once you register, connect your bank account, deposit the funds, and you can buy as much Bitcoin as you want.
Creating Bitcoin Wallet
Many crypto exchange platforms offer users the services of storing their digital assets for them. These are called custodial wallets, and they can be an excellent option for some.
However, if you want to maintain complete control over your digital assets, creating a non-custodial wallet is probably the best solution.
Some cryptocurrency owners like to use mobile wallets, while others invest in hardware wallets. But often the easiest solution is to use a free-of-charge, open-source web wallet. These wallets usually have user-friendly interfaces that allow users to send and receive Bitcoin instantly and without struggle.
Sending Bitcoin
Once you’ve created a trustworthy Bitcoin wallet and transferred your funds from the exchange, you can send money to someone else.
The most important part of this process is for the recipient to send you their Bitcoin address. They also need to have a Bitcoin wallet and click on the “Receive” option on the dashboard to generate a Bitcoin address.
A string of alphanumeric characters generated by the wallet is the Bitcoin address. They can forward the address to you via email, in the form of a QR code, or even send it through text message. Once you have the address, here’s what you should do:
- Click on the “Send” option in your wallet.
- Enter the amount you’re sending.
- If applicable, choose the network fee and click on “Send.”
Controlling the Network Fee
The subject of Bitcoin transaction fees has had some controversies. Due to the popularity of this digital currency, the prices have increased over time, and transaction confirmation times have slowed down.
When a transaction takes place on the Bitcoin network, the miners need to verify it and place it in a block. The transaction fee price directly impacts the speed of the confirmation because that’s how miners receive their rewards.
In general, most transactions are completed and verified within several minutes, or at worst, a few hours. If the recipient of Bitcoin is not in a hurry to receive money, you can pay a lower fee for a slower delivery time. However, you can run into a problem if you set a fee that’s too low.
In those situations, your transaction may get stuck on the blockchain for days. Also, some wallets and exchanges don’t allow users to set their fees but automatically assign a pretty high transaction fee and charge a percentage.
Other platforms may offer a three-tier system that can be something like “Eco,” “Fast,” and “Fastest” and let users choose.
Can You Send Bitcoin to Someone Without a Digital Wallet?
The shortest answer to this would be – not really. One way to do it is to purchase a hardware wallet and send it to them physically.
But that may only be a popular option when you want to gift someone Bitcoin. The only other option is to find the type of Bitcoin wallet that supports sending Bitcoin via email.
It doesn’t mean that the recipient receives Bitcoin automatically, but they will be invited to create a wallet and claim their digital tokens.
Sending and Receiving Bitcoin Without a Hitch
To successfully send Bitcoin to a friend, family member, or pay someone for their services, you’ll need to have a Bitcoin wallet and a Bitcoin address. From there, the process is fairly smooth. You enter the amount and press send.
The only somewhat complicated aspect of sending Bitcoin is figuring how transaction fees work. It’s all about finding the right balance and ensuring every transaction ends up in the right place.
Choosing exchanges where you can set your own fees can be an excellent solution, but keep in mind not to set a fee that’s too low.
