With over 400,000 daily transactions, Bitcoin is the world’s first and most popular decentralized cryptocurrency, used by over 106 million users globally. Its wide accessibility, blazing-fast transaction speed, and decentralized nature make Bitcoin a better alternative to fiat money.
If you are new to the Bitcoin ecosystem, understanding how everything works can seem a bit overwhelming. But really, it’s not. You can send and receive Bitcoins anywhere in the world with just a few clicks. In this blog, we will learn how you can transact in Bitcoins, what you need, how to get started, and the things you should know before using Bitcoins. If that sounds exciting, let’s get going!
Sending Bitcoins is even simpler than wiring money via banks. All you need is a Bitcoin wallet and the recipient’s wallet address to initiate the transfer. Let’s dive deeper.
First things first, we will need a Bitcoin wallet. If you don’t have one, you can download the Speed Bitcoin Lightning Wallet application from Google Playstore or Appstore. It’s secure, reliable, and completely free.
Once downloaded, sign up using your email address. Upon successful registration, you will be redirected to your wallet’s main screen, which will show the total balance, LN address, and confirmed and pending transactions.
That’s it. In just a few taps, you can send Bitcoins to anyone, anywhere, with Speed’s Bitcoin Lightning Wallet.
Receiving Bitcoins via the Speed app is easy, too. Let’s understand how it works:
Receiving payments via the Speed app is completely free. You can receive as many Bitcoins as you want at no cost.
Every transaction is successfully recorded on the Blockchain only when network nodes verify it cryptographically.
On average, transactions are settled within minutes. However, settlement time may vary as it depends on a lot of factors, such as the total network activity, hash rate, and transaction fees. This means if the network is overloaded, there will be a backlog of transactions, which would result in users paying more transaction fees for faster settlements. In April 2021, average Bitcoin transaction fees reached $59 as the network was congested.
Let’s understand how Bitcoin network fees are calculated and how can you minimize them.
Bitcoin network fees were implemented to prevent spam transactions that could slow down the network. They are usually expressed in satoshis (a unit of Bitcoin equivalent to 0.000270 US Dollars). Bitcoin owners pay network fees to miners to validate the transactions and add transactions to blocks.
The average Bitcoin network fee is approximately $1.59 per transaction. However, it varies based on the data volume and transaction speed (the faster a user wants their transaction to be confirmed, the more fees they will have to pay).
All the Bitcoin transactions are processed in blocks, which have a maximum capacity of 4 MB. The network fees are directly proportional to the size of a transaction and the number of people initiating transactions.
Larger transactions usually take more block data. Thus, they pay higher fees on a per-byte basis. The amount of fees paid also determines the speed of a transaction. Miners prioritize higher fee transactions first, which means the more a person pays, the faster their transaction will be settled.
With that said, there are several ways you can minimize your transaction fees. Let’s quickly look at a few:
Sending and receiving Bitcoins gets easier, efficient, and cost-effective with Speed Bitcoin Lightning Wallet. If you haven’t already, download the app for free from Google Playstore or Appstore. The app is easy to use and works with all Bitcoin wallets across the globe. You can send and receive Bitcoins anywhere, anytime, via our app.
If you are a business or merchant, consider signing up for a Speed merchant account. With a merchant account, you can access our exclusive payment features at the lowest transaction fees. Get started today to experience lightning-fast payments with Speed.
A Bitcoin address is similar to your bank account number. It’s a 26-35 characters long unique alphanumeric string used as a virtual address where your Bitcoins will be stored. Anyone on the network can pay you via your Bitcoin address. You can create a Bitcoin address via a Bitcoin wallet app. Here’s an example of a Bitcoin address: 4T69a2EpYQ36PMWqviecrnyiWrnqRhWNLy
You can see your Bitcoin address from the Speed Bitcoin Lightning Wallet app. Speed also allows you to set a custom Lightning Network address (which usually looks like an email address) for receiving Bitcoins.
Yes, absolutely. You can share your Bitcoin address with your friends, family, and acquaintances. No one can temper with your Bitcoins with just your address.
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