Electrum Spending my coins

[nathansenn]

I installed electrum on Ubuntu and started funding the address there then i noticed every time i spend coins it creates 2 transactions sends the amount i put in to the address i entered then sends 3x that to some other random address but still shows in my electrum wallet i still have those extra spent coins. I'm not sure how this is happening or if those coins are lost or there is some hack in their software.

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[ranochigo]

Its normal. The extra amount is the change. The way a transaction works is that the Total amount of inputs= Total output + fees.

Anything that is not spent by the output is the fees. Hence, the transaction can be like this:
INPUT FROM 1ADDRESS 2BTC -->> 1Destination 1.5BTC  (and the fees will be 0.1BTC since 1.5+0.4+0.1=2BTC.)
                                                1Change 0.4BTC

The change address is used uniquely for each transaction. It is kinda hidden by default, you have to go to the address tab, scroll to the bottom and expand the change. The change address is there.

[nathansenn]

Ok so its ok that i sent .5 of a bit coin then it makes 2 transactions

.5 to address i sent to
1.5 to random address

?

I sent .0001 to the random address and is show as a deposit in my electrum wallet so im guessing this is some kind of mixing they do.

[nathansenn]

Ok i see how it works now i about had a melt down when i looks on blockchain.info and seen my coins going to another wallet.

[Lutpin]

As ranochigo explained, it's called change and perfectly normal (might consider reading this: https://en.bitcoin.it/wiki/Change).
You can adjust your settings and send change back to the sending address, if you prefer that (Tools -> Preferences -> Transactions -> Uncheck "Use change addresses").

FYI: mixing is something different. Electrum does not mix your coins.

[nathansenn]

Ok yes i see how this works now thanks for the info.