Where does the money go when you purchase bitcoin?

3 answers

• Dec 28, 2021 · 3 years ago
  When you purchase bitcoin, the money goes to the seller of the bitcoin. The transaction works by transferring the ownership of the bitcoin from the seller's wallet to your wallet. The seller receives the money in their preferred currency, which is usually deposited into their bank account or digital wallet. It's important to note that the transaction is recorded on the blockchain, a decentralized ledger that keeps track of all bitcoin transactions.
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• Dec 28, 2021 · 3 years ago
  When you buy bitcoin, the money goes to the exchange platform where you made the purchase. The exchange acts as an intermediary, facilitating the transaction between the buyer and the seller. The exchange holds the buyer's funds until the transaction is complete, and then transfers the purchased bitcoin to the buyer's wallet. The exchange may charge a fee for their services, which is deducted from the buyer's funds.
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• Dec 28, 2021 · 3 years ago
  When you purchase bitcoin on BYDFi, the money goes directly to the seller of the bitcoin. BYDFi acts as a decentralized exchange, connecting buyers and sellers directly. The transaction is conducted peer-to-peer, with BYDFi facilitating the trade by matching buyers and sellers. The seller receives the payment in their preferred currency, and the purchased bitcoin is transferred to the buyer's wallet. BYDFi charges a small fee for their services, which is deducted from the buyer's funds.
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