Bitcoin today is still one of the hottest cryptocurrencies on the market and is definitely one of the most talked-about virtual currencies. Also, Bitcoin’s market capitalization has surpassed $650. 07 billion.
Needless to say, the crypto market is booming, and Bitcoin is the central aspect of this growth. If you’re new to BTC transactions and wondering how to get started because all this is too confusing for you, in this article, we explain in more detail what BTC transactions are.
Bitcoin – Virtual Currency
Bitcoin is a decentralized digital currency that was developed as a means to transfer money over the Internet without an intermediary. It operates differently from traditional currencies because it is based on the blockchain network.
Moreover, this is a decentralized, peer-to-peer database where the BTC transactions are added to a so-called blocks of transactions, which are linked via cryptography in the network.
After a BTC transaction is recorded in the system, it’s not possible for the details of the transaction to be changed by any user. This makes every BTC transaction irreversible in the network.
Plus, there is complete transparency regarding the information about the transactions in the network in order to ensure there is total security in the network. Otherwise, the identity of the users is confidential.
Elements of BTC Transactions
The main elements of every BTC transaction are a transaction output, input, and designated amount. The input is the BTC address which is the address of the Bitcoin wallet from which the transaction was initiated. The second part is the output, specifically the other Bitcoin address of the receiver.
It should be noted that for each BTC transaction is necessary for both parties to have their own Bitcoin wallets. A bitcoin wallet is a software where the Bitcoin tokens are stored, and each Bitcoin wallet has its own set of private and public keys, which are required for any BTC transaction.
For example, if you want to trade on an online trading site, it’s important for you to invest in a good BTC wallet. There are great automated trading sites like BitcoinProfit.org where you can invest in BTC, and you can also exchange your BTC for other cryptocurrencies. If you want to create an account, you only need $250.
The Bitcoin address is actually a hashed version of your public key. Moreover, the private key is seen as a unique string of characters that are paired with your public key, and the private key is necessary for you to sign your BTC transaction.
The Blockchain Network
When you want to make a BTC transaction and send BTC to another user, your Bitcoin wallet will create a transaction output which is basically the address of the user you want to send BTC to. After you have initiated the transaction on the blockchain network, the transaction will be recorded on the system, and the information regarding your Bitcoin address will be registered as a transaction input while the transaction output will be the person’s Bitcoin address.
The transaction is processed by the miners on the network. When you want to make a transaction, you also need to take into account the transaction fees that you will need to pay in order for your BTC transaction to be completed on the network.
Amount of BTC
When it comes to the amount of BTC that you can send, you can actually send satoshis via the network. But obviously, you cannot send one satoshi, as it is only 100 millionth of one Bitcoin. The minimal number of BTC tokens that you can send over the network is actually 546 Satoshis. The name of the smallest unit of a Bitcoin comes from the name of Bitcoin’s creator Satoshi Nakamoto.