How do Bitcoin transactions work?

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Bitcoin is growing in value and is expected to continue to grow for the near future. However, how does a transaction work?

Bitcoins are not a physical coin or currency and so, a transaction takes place between Bitcoin wallets. Included in these wallets is a piece of data that is known as a private key or it can sometimes be referred to as a seed. This is used to sign the transactions as a form of proof as to who the transaction originated from and that they do own the wallet.

The signature is also used to stop the transaction from being changed by anyone else once it has been made. Every transaction is broadcasted between users and takes around ten minutes to be confirmed by the network, which is known as bitcoin mining. However, it is worth noting that the price of Bitcoin can alter at any time so understanding when to make a transaction is vital. Mawazna.com aims to help you towards making well informed decisions.