How to Send Bitcoin
Sending Bitcoin is easy and takes only a couple of minutes. Learn how to send Bitcoin on Crypto.com and start using it to do more.
- A Bitcoin address serves as a digital identifier for sending BTC.
- Users can send Bitcoin by copying the recipient’s address or scanning a QR code, following a straightforward process in the Crypto.com App or DeFi Wallet.
- Users on Crypto.com can buy Bitcoin easily transfer to friends and family with minimal fees through the Crypto.com App, particularly when both parties use the platform.
- Transaction fees for sending Bitcoin vary based on network condition and transfer speed preferences.
When someone goes to the grocery store for a gallon of milk, they can use cash, a credit or debit card, or a mobile app at checkout. Similarly, they can send Bitcoin by typing the recipient’s address into their wallet or scanning a QR code on a mobile app.
In this article, we explore several methods for sending Bitcoin to others using Crypto.com products as examples. Crypto.com products are designed with ease of use in mind, but the same procedures generally hold for other similar products.
What Is a Bitcoin Address?
The first step for sending Bitcoin is creating a Bitcoin wallet, which contains a public key and private key. The public key is used to generate a Bitcoin address, which is a digital identifier serving as a location where BTC can be sent. Think of it like a bank account on the Bitcoin network.
Addresses are created using specialised Bitcoin wallet software and typically look something like this:
A Bitcoin address can be copied electronically whenever a user wants to send Bitcoin.
At Crypto.com, we offer two different types of Bitcoin wallets. The Crypto.com App is a custodial wallet designed for novices in the cryptocurrency space, helping them manage their Bitcoin and allowing certain transactions to take place ‘off-chain’, dramatically reducing the fees they pay.
Alternatively, users can choose the Crypto.com DeFi Wallet, which is a non-custodial wallet, meaning they are the only one responsible for their funds. With non-custodial wallets, all of a user’s transactions are added to the Bitcoin blockchain, so their transaction fees are higher. However, users get additional privacy and enjoy full control over their account.
How to Send Bitcoin to Another Wallet
Once the wallet is set up, users can start sending Bitcoin. The basic way for a user to send BTC is to copy the recipient’s address and then paste it into their wallet’s ‘send’ field. Or, they can scan the recipient’s QR code and automatically fill it in.
When using the Crypto.com DeFi Wallet, these are the steps:
- Open the App.
- Click on ‘Send Payment’ from the home screen.
- Choose which cryptocurrency to send and confirm the amount.
- Enter the recipient’s wallet address or scan their QR code.
- Select one of three default transaction speeds or enter a custom one.
- Click ‘Send’ to confirm the transaction.
The recipient will not receive the amount selected; instead, they will receive the amount minus transaction fees. The Bitcoin network requires transaction fees as an incentive for miners to include transactions in blocks, thereby processing them. Some wallets may charge more than the Bitcoin network requires so they can profit from every transaction, but the Crypto.com DeFi Wallet only charges the minimum required by the network. Users see what they’ll pay in fees when they confirm their transaction speed.
Crypto.com’s DeFi Wallet software also calculates exchange rates. For example, if someone is buying a piece of furniture from a friend at a price of US$200, but wants to pay in Bitcoin, they simply toggle to USD when selecting an amount and input 200. The wallet instantly displays how much Bitcoin that it converts to based on its exchange rate, streamlining the transaction without requiring the user to do any math.
Pending transactions are displayed on the home screen for users’ convenience. Tap on ‘View Status’ in Explorer to view them, as well. Note that, with other wallets, some of the tabs and buttons may have different names, but the overall steps should be similar. However, it may not be as easy to view pending transactions or convert fiat prices to cryptocurrency.
For those wanting to send an altcoin instead of Bitcoin, there may be a couple of extra steps required. For example, users need to add a destination tag/memo with the recipient’s wallet address to transfer Ripple (XRP). For the most part, though, sending cryptocurrency follows the procedure above, no matter which coin or token is transferred.
Send Bitcoin to Friends
If both a user and friend use Crypto.com as their cryptocurrency platform, they can use the Crypto.com App to transfer Bitcoin with minimal fees. Below is how:
- Access the account.
- Click on the ‘Send’ tab.
- Import contacts (first time only).
- Select a recipient (must be in a participating country).
- Choose Bitcoin when asked which cryptocurrency to send.
- Review the transaction and click ‘Confirm’ to complete.
Crypto.com App users won’t pay fees if the intended recipient of the transfer also uses the Crypto.com App to receive cryptocurrencies, and the fees are minimal when sending digital cash to an external address.
How Much Does It Cost to Send Bitcoin (BTC) to Somebody?
As noted above, users are charged a transaction fee whenever they send Bitcoin. A Bitcoin transaction fee refers to the amount that a user pays to miners in order to have their transaction included in the blockchain. The higher the fee paid by the user, the greater the likelihood that their transaction will be promptly selected, as each block has limited space available.
Generally, transaction fees on Bitcoin are mostly determined by two factors:
- The ‘size’, or data volume, of the transaction.
- Users’ demand for block space. (Generally, the faster a user wants their transaction confirmed, the higher fees they will be willing to pay.)
In other words, as a rule of thumb, users generally pay more for larger data sizes and faster transactions. Note that certain cryptocurrency exchanges charge higher fees than others, and be aware of withdrawal limits.
Transaction Fees Are Calculated in Satoshis
Bitcoin fees are generally measured in satoshis per virtual byte after the Segregated Witness (SegWit) upgrade. Named after Satoshi Nakamoto, the pseudonym used by Bitcoin’s creator (or creators), a satoshi is the smallest divisible unit of Bitcoin, equivalent to a hundred millionth of one BTC (0.00000001 bitcoin).
The total fee paid by a user’s transaction is this rate multiplied by the size of their transaction.
To send bitcoins with confidence, first obtain a Bitcoin wallet. Next, acquire the recipient’s public address and choose an amount to send. Look over the transaction details, then hit ‘Send’.
Users generally pay a transaction fee, which serves a dual purpose as an anti-spam mechanism and financial incentive for miners to process transfers. It is important to always get a snapshot of charges before sending anything in order to avoid surprises.
Due Diligence and Do Your Own Research
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