If I buy Bitcoins worth $1000, where does my dollars actually go to? Into a bank account? Whose bank account?
There are several ways to buy Bitcoins, including credit card purchases or bank wire transfers. Once you open an account on a Bitcoin exchange, you can deposit dollars to your account through bank wire transfers. In this case, dollars are held on your account at the exchange, which you can then use to buy Bitcoins on the site. If you decide to buy Bitcoin with credit card, the amount is deducted from your card and the Bitcoins are debited to your account on the exchange. In both cases the exchange happens at the current market price which the exchange offer for you.
We have a Beginner Guide to Bitcoin Course, you may also find that interesting, you can sign up here.
Please login or Register to submit your answer