How Crypto Transactions Work

The journey of a transaction

1. Your wallet builds the transaction and signs it with your private key.
2. The signed transaction is broadcast to nodes on the network.
3. It waits in the mempool, the pool of valid transactions not yet included in a block.
4. A miner or validator includes it in a block, generally preferring higher fees per unit of data.
5. Each subsequent block adds a confirmation, making reversal progressively impractical.

Transaction hashes and block explorers

Every transaction has a unique identifier, the transaction hash or TXID. It is public, safe to share, and the only reliable way to discuss a specific transfer.

A block explorer is a public website that reads the blockchain, so you can paste a hash or address and see the real status independently of any app's display.

• Pending or unconfirmed: broadcast, not yet in a block.
• Confirmed: included in a block, with a count that grows over time.
• Failed: accepted by the network but reverted, which on smart-contract networks still consumes fees.
• Not found: never successfully broadcast, or you are looking at the wrong network's explorer.

If a service says it has paid you, ask for the transaction hash. A claim without a hash is not evidence.

How many confirmations are enough

There is no universal number. Exchanges publish their own crediting thresholds, which differ by asset and by amount. Higher-value transfers conventionally wait longer, because the cost of reversing history rises with each block.

Why your balance may look wrong

• The wallet has not refreshed, or is connected to a slow node.
• The asset arrived on a different network than the one currently selected.
• A custom token needs to be added manually before it appears.
• The deposit is credited only after the receiving platform's confirmation threshold.

Sources

• Ethereum developer documentation — Transactions
• Bitcoin developer guide — Transactions