IFCCI

Sending and Receiving Bitcoin

How to Send Bitcoin?

2 min readLesson 8 of 10
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Learning Objectives

  1. 1Follow the step-by-step process of sending Bitcoin: creating, signing, and broadcasting a transaction
  2. 2Understand the role of network fees and how they affect transaction speed
  3. 3Learn how to track a Bitcoin transaction using a block explorer
  4. 4Recognize common mistakes to avoid when sending Bitcoin

What You Need

To send or receive Bitcoin, you'll need a Bitcoin wallet. Think of it as your digital bank account for Bitcoin.

You'll also need the recipient's Bitcoin address—a unique string of letters and numbers, like an email address, that looks something like this:

  • 1FeexV6bAHb8ybZjqQMjJrcCrHGW9sb6uF
  • bc1qa5wkgaew2dkv56kfvj49j0av5nml45x9ek9hz6

Steps to Send Bitcoin

1. Create a Transaction

  • Open your wallet and paste the recipient's address.
  • If you're face-to-face, simply scan their QR code.
  • Enter the amount of Bitcoin you want to send.
    • Double-check the currency! Don't send 100 BTC if you meant $100 worth!
  • Click "Send" to create the transaction.

2. Sign the Transaction

  • Your wallet will ask for a password or confirmation.
  • Once confirmed, your wallet uses your private key to digitally sign the transaction.
  • This signed message tells the Bitcoin network you authorize sending BTC from your wallet to the recipient.

3. Broadcast the Transaction

  • Your wallet connects to a Bitcoin node and sends your signed transaction.
  • That node broadcasts it to the entire Bitcoin network.
  • At this stage, your transaction will appear as "pending".

Once confirmed by the network, the Bitcoin is officially sent.

What's a Network Fee?

Every Bitcoin transaction includes a network (or miner) fee.

  • Higher fees = faster processing (miners prioritize them).
  • Lower fees = slower confirmation (can take hours or days).
  • If the fee is too low, the transaction might be canceled after ~72 hours—but your BTC will be returned.

Most wallets automatically set a fee based on network conditions to balance cost and speed.

How Long Do Transactions Take?

Bitcoin transactions can take anywhere from 10 minutes to a few hours to be confirmed, depending on the fee and network congestion.

How to Track a Transaction

Use a Block Explorer—a search tool for the Bitcoin blockchain—to track your transaction's status.

  • Just enter the recipient's address or transaction ID.
  • Examples: Blockchain.com, Blockstream.info, BlockCypher.

Most wallets link directly to a block explorer so you can monitor confirmations in real time.

Key Takeaways

  1. 1Sending Bitcoin requires a wallet and the recipient's address, and involves three steps: creating the transaction, signing it with your private key, and broadcasting it to the network
  2. 2Every transaction includes a network fee paid to miners—higher fees result in faster confirmation, while lower fees may cause delays
  3. 3Bitcoin transactions typically take 10 minutes to a few hours to confirm, depending on network congestion and the fee amount
  4. 4Block explorers like Blockchain.com allow you to track any transaction's status in real time using a transaction ID or address

Knowledge Check

1. What are the three main steps involved in sending Bitcoin?

Previous LessonWhich Bitcoin Wallet Should You Use?Level OverviewNext LessonHow to Receive Bitcoin