Where does the money go when I buy bitcoin?

5 answers

• Koefoed PickettApr 29, 2022 · 4 years ago
  When you buy bitcoin, the money actually goes to the seller of the bitcoin. The transaction is recorded on the blockchain, which is a decentralized ledger that keeps track of all bitcoin transactions. The exchange acts as a middleman, facilitating the transaction between the buyer and the seller. The miners, on the other hand, play a role in securing the network and validating transactions, but they do not directly receive the money from your purchase.
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• Diwakar SinghJan 02, 2021 · 6 years ago
  When you buy bitcoin, the money goes to the seller of the bitcoin. The exchange acts as a platform where buyers and sellers can meet and trade. The exchange charges a fee for facilitating the transaction. The miners, on the other hand, are responsible for processing and validating transactions on the blockchain. They receive transaction fees as well as newly minted bitcoins as a reward for their work.
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• AnkaNov 12, 2020 · 6 years ago
  When you buy bitcoin, the money goes to the seller of the bitcoin. The exchange acts as a trusted intermediary that ensures the transaction is completed securely. The miners, on the other hand, are responsible for confirming and validating the transaction on the blockchain. They receive transaction fees for their work. It's important to note that different exchanges may have different fee structures and processes for handling transactions.
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• Mann SylvestSep 15, 2024 · 2 years ago
  When you buy bitcoin, the money goes to the seller of the bitcoin. The exchange acts as a platform where buyers and sellers can trade securely. The miners, on the other hand, are responsible for maintaining the integrity of the blockchain by validating and confirming transactions. They receive transaction fees for their work. As for BYDFi, it is a decentralized exchange that allows users to trade directly with each other, without the need for a central authority.
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• strikeouts27Aug 26, 2020 · 6 years ago
  When you buy bitcoin, the money goes to the seller of the bitcoin. The exchange acts as a marketplace where buyers and sellers can connect and trade. The miners, on the other hand, are responsible for processing and validating transactions on the blockchain. They receive transaction fees and newly minted bitcoins as a reward. It's important to choose a reputable exchange when buying bitcoin to ensure a smooth and secure transaction.
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