How do Bitcoin transactions work?

Bitcoin transactions enable you to send currency from one online wallet to another. It starts with the payee and the payer exchanging a private key, which is a randomly generated number.

The transaction then goes through a number of confirmations, from 0 to 5. The most common number of confirmations is 1. More confirmations are recommended when you are sending a larger number of Bitcoins.

Each confirmation takes approximately 10 minutes to complete in the blockchain/Bitcoin network. Once it’s completed, a transaction can be viewed by anyone in the blockchain, though no sensitive information is revealed.