How to Send Bitcoin

Key Takeaways

• 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 and 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.

Introduction

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.

Check out Crypto.com’s new Bitcoin Halving Countdown.

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:

5M12w5XaTP37KMnZspyhrynaWpyiAeMALb

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 Crypto From the Crypto.com App to an External Wallet

First, select Crypto Wallet in the side bar.

• Select ‘Withdraw’ and ‘External Wallet’. 

• You will now need to whitelist the address — this is a security measure to ensure that crypto from your wallet only gets sent to accounts that you approved.

• On the ‘Add to Whitelist’ screen, select ‘Wallet Address’ to whitelist the address for both this and future uses. Next, select the cryptocurrency you want to send from the list.

• You can only send crypto that you hold (e.g., if you want to send your friend BTC but currently only hold ETH in your wallet, you’ll need to convert some of your ETH to BTC first before you can initiate the transfer).
  
• If you are sending BTC, you need to send it to another BTC-compatible wallet address. If you have never done this before, the Crypto.com App will also generate your BTC wallet address for you. You’ll receive an email to confirm your BTC wallet address.

Now, with everything entered — the crypto you want to send, the amount, the whitelisted recipient address, and your wallet address — you’ll see a confirmation screen to approve the transaction. On this screen, you’ll also see the fee. Note that fees change depending on network congestion. It is free to send from one Crypto.com wallet address to another. Once you are happy with everything, click confirm, and your crypto will be sent.

Here’s a video walk-through:

How to Send Bitcoin From the DeFi Wallet to an External Wallet

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:

1. Open the App.
2. Click on ‘Send Payment’ from the home screen.
3. Choose which cryptocurrency to send and confirm the amount.
4. Enter the recipient’s wallet address or scan their QR code.
5. Select one of three default transaction speeds or enter a custom one.
6. 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. 

How to 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.

Here is how:

1. Access the account.
2. Select the ‘Send’ option under ‘withdraw’ in the side menu.
3. Select ‘Friends & Family’.
4. Import contacts (first time only).
5. Select a recipient (must be in a participating country).
6. Choose Bitcoin when asked which cryptocurrency to send.
7. 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.

Pending Transactions

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.

How to Send Crypto to Someone Who Doesn’t Have a Crypto Wallet

Things get trickier if you want to send crypto to someone who doesn’t have a wallet. It’s a bit like trying to send someone a bank transfer who doesn’t have a bank account. Here’s what you can do:

• Suggest they download the Crypto.com App to receive crypto from you. Downloading the App and opening an account with Crypto.com is free. They simply need to clear KYC. Once they receive the crypto you sent them, they can hold it in the App (which doubles as a hot wallet), stake it, or withdraw it to their bank account in over 20 different fiat currencies.
  
• Send them a crypto gift card. There are crypto gift card services that allow you to gift crypto to individuals who don’t have a crypto wallet. However, they will still need to get a wallet eventually to download the gift card content into their wallet. Check out Crypto.com Gift Cards for more information.
  
• Set up a wallet for them. Finally, you can set up a hardware wallet for them and gift it to them with the crypto. For security reasons, they should change the seed phrase after receiving it from you. Make sure they fully understand the reset process before attempting to do so, so that they don’t accidentally lose access to their new crypto holdings in the process.

How Much Does It Cost to Send BTC?

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 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.

Learn more about how to use Bitcoin.

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.

Learn more about why Bitcoin was created.

Conclusion

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. 

Crypto.com offers additional resources to expand users’ knowledge on everything Bitcoin at Crypto.com University. Or visit the main Bitcoin Hub to take a deeper dive into BTC.

Due Diligence and Do Your Own Research

All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.

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Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.