What happens to the funds when you buy bitcoin?

6 answers

• Mar 06, 2022 · 3 years ago
  When you buy bitcoin, the funds are used to purchase the bitcoin from a seller. The transaction is recorded on the blockchain, which is a decentralized ledger that keeps track of all bitcoin transactions. The funds are transferred from your account to the seller's account, and you become the owner of the purchased bitcoin. It's important to note that the funds do not disappear or go to a specific entity, but rather they are transferred between accounts.
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• Mar 06, 2022 · 3 years ago
  When you buy bitcoin, the funds are used to execute a trade on a cryptocurrency exchange. The exchange matches your buy order with a sell order from another user. Once the trade is executed, the funds are transferred from your account to the seller's account. The exchange acts as an intermediary to facilitate the transaction and ensure its security. It's important to choose a reputable exchange that follows proper security measures to protect your funds.
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• Mar 06, 2022 · 3 years ago
  When you buy bitcoin on BYDFi, the funds are used to purchase the bitcoin from other users on the platform. BYDFi acts as a decentralized exchange where buyers and sellers can trade directly with each other. The funds are transferred from your account to the seller's account through a smart contract on the blockchain. This ensures a secure and transparent transaction. BYDFi does not hold your funds, but rather facilitates the peer-to-peer trading process.
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• Mar 06, 2022 · 3 years ago
  When you buy bitcoin, the funds are used to purchase the bitcoin from a seller on the chosen exchange. The exchange acts as a platform that connects buyers and sellers. The funds are transferred from your account to the seller's account, and the exchange charges a small fee for facilitating the transaction. It's important to choose a reliable exchange with good liquidity and security measures to ensure a smooth buying process.
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• Mar 06, 2022 · 3 years ago
  When you buy bitcoin, the funds are used to execute a trade on a cryptocurrency exchange. The exchange matches your buy order with a sell order from another user. Once the trade is executed, the funds are transferred from your account to the seller's account. It's important to note that the funds are not held by the exchange, but rather they are transferred directly between the buyer and the seller. This ensures a secure and transparent transaction.
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• Mar 06, 2022 · 3 years ago
  When you buy bitcoin, the funds are used to purchase the bitcoin from a seller on the chosen exchange. The exchange acts as an intermediary that facilitates the transaction. The funds are transferred from your account to the seller's account, and the exchange deducts a small fee for its services. It's important to choose a reputable exchange that follows proper security protocols to protect your funds during the buying process.
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