What is a crypto transaction?

What Is a Crypto Transaction?

A crypto transaction is a signed message that moves coins or tokens from one wallet address to another. When you send crypto, your wallet creates a transaction that says "transfer X amount from my address to this address." You sign it with your private key. The transaction is broadcast to the network and, once validated, is added to the blockchain. The recipient's balance increases; yours decreases.

What It Contains

A transaction typically includes the sender and recipient addresses, the amount, a fee (for the network or miners/validators), and a signature. On networks like Ethereum, it can also trigger a smart contract (e.g. swap tokens or lend).

Confirmations

After a transaction is included in a block, it has one confirmation. Each new block added on top adds another confirmation. More confirmations mean the transaction is less likely to be reversed. For small amounts, one or a few confirmations are often enough; for large sums, wait for more.