Real blockchain fees only occur when you withdraw your Bitcoin to a private wallet. These small amounts of BTC (not your initial fiat deposit) go to miners who secure the network.
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
The destination of your funds depends entirely on how you conduct the purchase: Real blockchain fees only occur when you withdraw
When buying on an exchange, your money stays on traditional banking "rails". The exchange simply updates its internal "spreadsheet" to show you own a piece of their Bitcoin pool. When you buy "newly" minted Bitcoin, you are
Your money goes directly to the individual seller's bank account or mobile wallet, often facilitated by an escrow system on the platform.
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.
A small portion (usually less than 1%) is kept by the exchange as a service fee. Brokerage Models: