Where Does The Money Go When You Buy Bitcoin Access

Until you move your Bitcoin to a private wallet , you technically hold an from the exchange rather than the asset itself. If an exchange fails, your "money" may be lost as you are considered a creditor to that company.

All Bitcoin originally enters the market through miners. When you buy "newly" minted Bitcoin, you are essentially paying a miner for the computational work they performed to create that block. Ownership Risk: "The IOU" where does the money go when you buy bitcoin

A small portion (usually less than 1%) is kept by the exchange as a service fee. Brokerage Models: Until you move your Bitcoin to a private

If the platform sells from its own private inventory, your money goes directly to the company. When you buy "newly" minted Bitcoin, you are

Your dollars are moved into the exchange's bank account and then credited to the internal account of the person selling the asset.