Bank?

Jan Visser asked 3 weeks ago

If I buy Bitcoins worth $1000, where does my dollars actually go to? Into a bank account? Whose bank account?

1 Answers
Zsofia Elek Staff answered 3 weeks ago

Hi Jan,
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. 
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Jan Visser replied 3 weeks ago

Thank you Zsofia. I know how to buy Bitcoins. What I want to understand is where does my money go to? Physically. Into someone’s bank account? where is it kept? In a “basket” somewhere? Once my currency leaves my credit card/my Bank, where does the money go to? Has Bitcoin got a Bank account somewhere?

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