There’s nothing quite like investing in a new asset class only to be left waiting for that cryptocurrency to clear in your wallet. We understand it can feel a bit daunting when you’re left waiting for 10 minutes, an hour, maybe even a day. In this article, we’re going to outline exactly what factors contribute to how long it takes to buy Bitcoin, and give you an understanding of what could be happening behind the scenes.
When it comes to understanding how long it might take to buy Bitcoin, one must first understand how Bitcoin transactions work.
How Do Bitcoin Transactions Work?
Bitcoin transactions are facilitated through blockchain technology. The network is made up of numerous (thousands) of nodes and miners, who collectively maintain and operate the digital payment system.
When one person sends Bitcoin to another, the transaction is initiated from their Bitcoin wallet and a small network fee is paid. The transaction then enters what is known as the mempool (a pool of pending transactions) and waits until the next available block is ready to be mined. Users can also opt to pay a higher transaction fee which would prioritize their transaction in the mempool.
When the next block is mined, miners from around the world aim to solve a complex cryptographic puzzle in order to be rewarded with the task of executing the transactions. The first one to solve the puzzle then confirms that all the addresses are valid and the funds being sent exist.
The transactions are then executed and added to a block, which gets added to the previous block in the blockchain. These remain in chronological order, and cannot be tampered with or edited. The miner is rewarded a block reward (currently 6.25 BTC) for mining the block, as well as each transactions’ network fees.
The recipient will receive a notification that the funds have been received, and for security reasons will usually clear within six confirmations. These confirmations are new blocks added to the blockchain after the one with that specific transaction’s data. Typically, a Bitcoin block takes 10 minutes to mine, so it could take up to an hour for the funds to clear.
See here for a month in-depth look at how Bitcoin transactions work.
What Affects How Long A Bitcoin Transaction Takes?
Two factors contribute to the amount of time a Bitcoin transaction might take:
- How busy the network is at that time
- The network fee paid
Blocks on the Bitcoin network are 1MB big, meaning that they can only hold so many transactions. If the network is very busy, meaning that many transactions are being sent, then the network is slowed down as there is a limit to the number of transactions that can fit into a block.
While the network does often get congested, the most likely cause for a delay in transactions being sent is the network fee paid. Miners prioritize transactions in the mempool based on the network fee associated with it. A very small network fee will likely be chosen last.
How Long Does It Take To Buy Bitcoin On Oobit?
When it comes to buying Bitcoin, you’re going to want to ensure that you are using a reputable and trustworthy exchange. On top of the above factors, your payment choice might also affect your transaction. For example, if you opt to make a bank transfer this could take days.
At Oobit, we handle transactions internally, immediately releasing the funds once payment has been received. See our payment options and their lead times below:
- Credit or debit card: Instant
- Bank transfer (SEPA): 1–3 business days
- Apple Pay: Instant
- Google Pay: Instant
To instantly buy Bitcoin all you need to do is create an account, complete the identity verification process (with our integrated technology, approval takes under 5 minutes) and you’re free to instantly buy as much Bitcoin or any other cryptocurrencies as you’d like.
________________________________________________________
Oobit Technologies Pte, 50 Raffles Place #37–00 Singapore Land Tower, Singapore (048623). is a company registered in Singapore (no:201716443G), that has been approved as Appointed Representative of Oobit Technologies OÜ, Harju maakond, Tallinn, Lasnamäe linnaosa, Väike-Paala tn 2, 11415, (no: 14852617 ). Which is authorized and regulated by the FIU (no: FVR001421 and FRK001304).
