Sending and Receiving Bitcoin
- Sending and receiving bitcoin is one of the core building blocks of any bitcoin application. Sending and receiving bitcoins securely over the internet gives you a bitcoin value.
- To send and receive bitcoin, you would like to have a wallet where you would like to place the general public address of the sender and recipient.
- If you have purchased things in online with Paypal or done online banking before, using bitcoin for purchase of goods and service on the internet is not very different. Instead of logging in to your Paypal or bank website, with bitcoin, you log into your personal from there.
The process of sending and receiving bitcoin can differ between wallets to wallets, but the general steps are given below.
Step 1
- Log-in into your wallet.
Step 2
- Go to send and receive icon.
Step 3
- Choose whether you would like to send or receive bitcoin.
Step 4 - Send Bitcoin
- Enter the general public address of the recipient and choose the amount which you would like to send. Once you opt the amount, confirm the quantity to avoid mistakes, then click on send transaction, and verify the transaction one last time for confirming your public address and sender's public address.
Step 5 - Receive Bitcoin
- To receive bitcoin, you would like to share your public wallet address with the sender. You'll also do that by letting them scan a QR code.
Example
- Alice wants to send eight bitcoins to Ben. She is sending eight bitcoins because she may have bought a product or paying him for services. For sending those eight bitcoins, Alice must have eight bitcoins in her wallet, and may even be ready to receive bitcoins in her wallet. She could have bought bitcoins, or she could have received , bitcoins as payment.
- We are assuming that Alice has 20 bitcoins in her wallet. When the wallet is made, it assigns two keys. One is that the public key which is used to receive bitcoins. And another is that the private key which is used to sign and authorize to send or spend those bitcoins to people. We all know that Alice has the private key to her wallet, so she is in a position to spend those bitcoins.
- Ben can receive eight bitcoins if he has a wallet of his own, which allows him to get bitcoins from anyone else. Ben also features a private key for his wallet which will enable him to spend those bitcoins that he has in his wallet.
- Ben's private key's completely different from Alice's private key. If Ben wants to receive eight bitcoins from Alice, he must provide his Bitcoin address to Alice. The bitcoin address is used for receiving money, which may be a hashed version of the general public key.
- Ben has the choice to get a new bitcoin address for each single transaction if he wants. Creating the new bitcoin address for each transaction may be a good security recommendation in terms of privacy.
- Ben can share his bitcoin address in two ways. He can share an alphanumeric code which starts with the number one and ends within the letter H, and another one is that the QR code.
- The alphanumeric code is usually different for each single bitcoin address, and these addresses are typically between 26 to 35 characters long. The bitcoin address which you see numerically is that the Ben address want to receive bitcoins from Alice.
- When Alice sends the eight bitcoins to that address, she creates a transaction. She is able to do this transaction because she will access the private key and may authorize to transfer eight bitcoins on Ben's bitcoin address. So, a new transaction shows that from Alice's wallet, eight bitcoins are being sent to Ben's wallet. The transaction at that time gets sent out into the network, and therefore the miners begin mining blocks. When the primary block comes in and includes that transaction in it, then the transaction is said to be confirmed.