Chapter 3: Making Your First Transaction

We assume you have set up your crypto wallet by now. If you’re still deciding which option works best, our ‘Best Crypto Wallets for Beginners’ guide can help.

So, now it’s time to actually use it. Sending and receiving crypto might sound intimidating at first, but it’s really just a few steps once you know the process.

How to Send and Receive Crypto

Pro Tip: If you’re sending to a new address for the first time, try sending a small test amount first to ensure it arrives at the intended address. Better safe than sorry. Remember that while sending crypto, you might have to incur some network fees, which are natively called ‘gas fees’. 

Feel free to check out our video on the crypto transactions to see it in action:

What Are Gas Fees and Why Do They Matter

Every time you send crypto, the blockchain charges a small fee, called a gas fee. Think of it like postage for mailing a letter.

If you don’t pay enough gas, your transaction might get stuck or fail. Pay more, and it usually goes through faster. Whether your transaction is delayed, pending, or successful, you can always verify its status directly on the blockchain. See our guide to crypto transaction fees for further information on the subject, or watch our video: Ethereum Wallets Explained: Gas, Smart Contracts and Transactions.

How to Check Your Transaction on the Blockchain?

One of the coolest parts about crypto is that every transaction is public. You can literally check if your transfer went through on the blockchain itself.

For additional information on this concept, check out our list of the most popular blockchain explorers, our full Blockchair Guide, and our tutorial on How to Read an Ethereum Transaction.

That’s all. Once your transaction has enough confirmations, it’s permanent. That’s your proof it went through. Remember, checking your transaction on the blockchain ensures peace of mind that your crypto arrived safely.

Chapter Quiz

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Module 3, Chapter 3- Making Your First Transaction

1 / 8

How can you verify that your transaction went through successfully?

By calling the exchange’s customer support

By checking your account balance at your bank

By entering your wallet address or transaction ID on a blockchain explorer

By waiting for an email confirmation from the government

Blockchain explorers are public tools that let anyone view transaction histories. By typing in your wallet address or transaction hash, you can confirm the status of your transfer.

Blockchain explorers are public tools that let anyone view transaction histories. By typing in your wallet address or transaction hash, you can confirm the status of your transfer.

2 / 8

Why do gas/network fees matter to users?

They decide how quickly your transaction is confirmed

They determine the physical size of your crypto wallet device

They guarantee your crypto will increase in value

They are optional payments that do not affect the transaction

Higher gas fees usually mean faster transaction confirmation because validators prioritize transactions that pay more. If fees are set too low, your transaction may take longer or even fail.

Higher gas fees usually mean faster transaction confirmation because validators prioritize transactions that pay more. If fees are set too low, your transaction may take longer or even fail.

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What are “gas fees” in a crypto transaction?

Fees paid to your internet provider for accessing blockchain websites

Fees that exchanges charge to withdraw your coins to a bank account

Costs required to process transactions and reward network validators/miners

Hidden government charges on peer-to-peer transfers

Gas fees are paid by users to incentivize validators or miners to confirm transactions. They can vary depending on network demand and are essential for keeping the system secure and running.

Gas fees are paid by users to incentivize validators or miners to confirm transactions. They can vary depending on network demand and are essential for keeping the system secure and running.

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What happens when you receive cryptocurrency from someone else?

The sender mails you physical crypto coins

The transaction is recorded on the blockchain and added to your balance

The government issues you a receipt via email

Your wallet creates new tokens automatically

When crypto is sent to you, it is logged on the public blockchain and linked to your address. Your wallet reflects this balance once the network confirms the transaction.

When crypto is sent to you, it is logged on the public blockchain and linked to your address. Your wallet reflects this balance once the network confirms the transaction.

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What is the very first step in sending cryptocurrency?

Writing down your seed phrase

Entering the recipient’s wallet address

Mining a new block on the blockchain

Paying gas fees in advance at a bank

Each crypto transaction begins by specifying the recipient’s address, which functions like a digital account number. Sending to the wrong address means the funds are lost, so accuracy is critical.

Each crypto transaction begins by specifying the recipient’s address, which functions like a digital account number. Sending to the wrong address means the funds are lost, so accuracy is critical.

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When Sending a Crypto Transaction:

Select All That Apply

All crypto transactions are completely anonymous and cannot be traced on the public blockchain.

A transaction requires a recipient's public wallet address, which is a long string of characters, similar to an email address.

You need to have sufficient funds in your wallet to cover both the amount you are sending and the associated network fees.

Once a transaction is confirmed on the blockchain, it is irreversible and cannot be canceled or reversed.

Check

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Crypto Transactions:

Select All That Apply

Are recorded on a public, decentralized ledger called a blockchain, making them transparent and immutable.

Are signed using a user's private key to prove ownership and authorize the transfer of funds.

Are irreversible, and once a transaction is confirmed on the blockchain, it cannot be canceled or reversed.

Are processed and managed by a central bank or financial institution.

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Gas/Network Fees:

Choose All That Apply

Are transaction fees paid to miners or validators as compensation for the computational work required to process and validate transactions.

Are a fixed, predetermined cost that remains the same regardless of network demand.

Are a mechanism to prevent spam attacks by attaching a cost to every operation on a blockchain network.

The cost of gas fees can fluctuate significantly based on network congestion and the complexity of the transaction.

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