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You already have your phone, cash in Swiss francs, and a selected Bitcoin ATM. You open the screen with the QR code on your phone. But is that really the pickup address? And the exchange rate on the screen—does it already include the transaction fee? These are exactly the kinds of details you should understand before confirming.
You don’t need to understand all of Bitcoin’s technology. All you need to do is distinguish between the information used to receive funds and the information that gives you control over them. Then it will be easier for you to assess the cost and check the status of a transaction. Let’s go through eight pairs of concepts using specific examples.
Public Address vs. Private Key
A public address, also known as a receiving address, specifies where the funds should be sent. You can provide it when you want to receive cryptocurrency. A private key is used to create a signature that allows you to spend funds. You should not share this key with the sender or a consultant.
Public does not mean indifferent to privacy. In Bitcoin, an address can be linked to the transaction history visible on the blockchain. Share it only when necessary, rather than publishing it along with details about your savings. A receiving address and a public key are also different technical concepts.
Example at a coin-operated machine
You want to buy BTC for 200 CHF. In your wallet, select the option to receive Bitcoin on a network compatible with your device and provide the receiving address. You don’t need the wallet backup screen for this. If someone asks for your private key, stop—you don’t need it to make the purchase.
Private Key vs. Recovery Phrase
A private key is used to sign transactions. A recovery phrase, often called a seed, serves as a backup in many wallets that allows you to restore your set of keys. It is not simply a second copy of your address or a password for contacting customer support.
The restoration process depends on the wallet. Sometimes an additional passphrase is also required. Keep a copy according to the manufacturer's instructions, and do not share it in messages or photos.
An example with a new phone
Your phone stops working. Simply writing down the recipient’s address isn’t enough to regain the ability to send BTC. In a wallet based on a recovery phrase, you need the correct backup and any additional data. That’s why you should prepare a backup in advance, not after a failure occurs.
Portfolio vs. the Stock Market
A wallet is a tool for managing access to cryptocurrencies. The funds themselves are stored on the blockchain. With a self-custody wallet, you control the keys; with a custodial service, the provider manages them. An exchange is primarily used for buying, selling, and trading assets.
A single app can combine several functions. The “Wallet” button on an exchange does not automatically mean that you have sole control over your keys. Check who authorizes withdrawals and how you can regain access.
Example Before Purchasing
You can see your BTC balance in your exchange account and the deposit address. Before you use it to receive funds, check the supported network, the minimum deposit amount, and the provider’s terms and conditions. Your balance on the exchange and your BTC in a self-hosted wallet may look similar on the screen, but the way you access them is different.
Cryptocurrency and the Network
The asset name answers the question “What am I sending?”, while the network answers “On which system am I making the transfer?”. A token with the same name may exist on multiple networks. A match in the name or symbol alone is not sufficient. Always compare the asset, network, and address on both sides.
Example before sending
The app displays several networks for the same token. Choosing the cheaper option only makes sense if the recipient supports it. If the device or transaction requires a different network, do not send funds. Clarify the discrepancy first; it may be impossible to recover an erroneous transfer.
Course and Fee
The exchange rate determines how much of one currency you receive in exchange for another. The fee is the cost of the service. It may be shown separately or included in the exchange rate. Therefore, the label “0%” alone is not enough to compare offers. What matters most is the final amount of cryptocurrency you receive for the same amount of CHF, checked at the same time.
The spread refers to the difference between the bid and ask prices. When comparing an offer to the market price, also pay attention to the time the price was quoted and the source of the quote. The price displayed in the search results does not guarantee that the transaction will be executed at that price.
Example with 200 CHF
The figures below are provided solely as a calculation example and do not represent Rothbard's price list. In both scenarios, you purchase BTC for 200 CHF. It is assumed that the exchange rate does not include the fee listed separately and that there are no other costs.
The offer without a separate fee gives you only slightly more BTC here, because it has a higher purchase rate. With different numbers, the result may be the opposite. Compare the final summary. Do not subtract the fee a second time, since it has already been factored into the rate.
Carrier Fee vs. Network Fee
The operator's fee applies to the exchange service. The network fee is associated with processing the transfer on the blockchain. Additionally, the exchange may charge its own withdrawal fee. These costs may occur at different stages of the process and may not be equal amounts.
Sales Example
You place a sell order and then send the cryptocurrency from your app. Check the order summary and the transfer preview separately. If the app deducts fees from the amount being sent, the recipient may receive less than the amount specified in the order. Before confirming, compare the amount that is actually supposed to be received.
Sent Transaction vs. Confirmed Transaction
The "sent" message does not always mean that the transaction has been included in a block. In Bitcoin, it may first have to wait for confirmation. The first confirmation means the transaction has been included in a block, and subsequent confirmations occur as new blocks are added.
On average, a new Bitcoin block is created about every 10 minutes, but this is not a guaranteed timeframe for your transaction. The queue and the fee may affect the waiting time. Network confirmation and the order being ready for withdrawal are separate steps.
An example while waiting
Your wallet shows "sent," but the transaction status does not yet indicate that it is ready for pickup. First, check the TXID in the explorer for the relevant network and verify the transaction status. Do not resend the same amount just because you are waiting. If there is a discrepancy, provide customer service with the ID and the message description.
Code for sending cryptocurrency vs. code for receiving cash
A QR code is a way of storing data, not the name of its function. In a sales order, a QR code may contain the data needed to send cryptocurrency. A cash pickup code is used for a different stage: the withdrawal from a prepared order. The TXID identifies the transfer on the blockchain and does not replace the pickup code.
Example using the device
You’re selling BTC and want to receive CHF. Use your phone to scan the details needed to send the cryptocurrency, and use the withdrawal code as instructed in the withdrawal guidelines. Do not attempt to withdraw cash using only the TXID. Keep your confirmation and do not post any photos showing the withdrawal code.
When making a purchase, the situation is different: you’re the one who provides the recipient’s address from your wallet. Read the code’s description before scanning it. Its shape alone won’t tell you what it’s for.
The best time to check the details is before depositing cash or sending cryptocurrency. Refer back to these questions if you have any doubts about what you see on the app or device screen.
Can I give my public address to the staff?
Yes, if it is needed to clarify a transaction. However, it may reveal your activity history. Do not send your private key or recovery phrase to customer support.
Are a portfolio and a stock market account the same thing?
No. An exchange may offer a custodial wallet, but that does not mean you have independent control over your keys. Check the access model and withdrawal policies for the specific service.
Does a zero fee mean the best deal?
Not always. The cost may be included in the exchange rate. Compare the final amount of cryptocurrency or cash for the same amount and the same valuation point in time.
Does sending BTC mean the CHF withdrawal is complete?
No. Check the confirmations online and the order status. Whether the payment is ready also depends on how it is processed. The message from the wallet alone does not confirm that the payment is ready to be received.
Rothbard.eu is developing the Bitcoin ATM aggregation platform in Switzerland, allowing users to find locations where they can buy and sell BTC and other cryptocurrencies for cash. The kiosks are available in Zurich, Geneva, Basel, Lausanne, Lucerne, Lugano, and Mendrisio, among other locations, and their current status and availability of funds can be checked online on the website’s map.
This material is for informational purposes only. It does not constitute investment, tax, or legal advice.