How to Transfer Cryptocurrency Safely. 8 Basics to Follow
Transferring digital assets is one of the necessary points that arise for every user from beginner to professional trader.
Crypto transferring is a process where you should be attentive to every little detail not to lose your funds.
Those traders or users who pass this procedure regularly do all the steps without any mistakes. But when transferring happens not so often it can bring some problems to users’ life.
Here are several basics you should be very attentive to while making crypto transferring operations.
The steps for transferring cryptocurrency is not complicated. It includes the following procedures:
· The user selects the cryptocurrency that he needs to transfer;
· Then he opens the address on the exchange, within the wallet to that the funds are going to be received, and copies it;
· Next, he indicates the address on the exchange or case from where the funds are going to be sent;
· Enter the amount;
· The final step is to confirm the withdrawal of funds. If coins are sent from the exchange, it’s probably you would like to confirm the deal via email and two-factor authentication (2FA).
You need to control and verify several important points not to lose the funds
1. First rule — the coins and the wallet where the funds are going to be transferred have to belong to the same cryptocurrency. It’s impossible to transfer Ethereum to Bitcoin address. If you’ll make this mistake you lose the amount you’re transferring. The internal function of some exchanges can help to prevent such errors — you’ll see a warning message and correct the currencies.
2. Be accurate in copying the address. The best way not to make mistake is a built-in function of copying to clipboard. Many services are equipped with this feature. In any case, be sure that you copied the entire address with all the symbols. Very often users copy the addresses with blank spaces. So be attentive and copy the address correctly.
Check the entire address. The addresses of both sides from which you’re transferring and the one that should accept your money have to be checked.
One more thing you should have is a recently updated anti-virus program on your device. There’s a lot of harmful programs on the internet that can replace the correct address from the clipboard to the fraudulent one. Anti-virus won’t let do this.
3. Phishing sites are a popular way of scamming nowadays. They create the site with the same design as the site you know and need. It’s very difficult to see the differences between right and false site. If you send cryptocurrency to a fraudulent site they will be lost irreversibly.
4. Tag is one more thing you always need to check. Tag is a little code that helps to distinguish your accounts inside marketplaces. Tag goes next to the wallet address. Cryptocurrency will be transferred to your wallet but you likely won’t see the amount inside it. This problem can be solved via the exchange’s support service.
Operations with such currencies as Monero (XMR), NEM (XEM), Stellar Lumens (XLM), Binance Coin (BNB), Ripple (XRP), EOS (EOS), Cosmos (ATOM) usually require tags.
5. Working with stablecoins allows avoiding transferring problems. USDT, BUSD, USDC, and others — these are stablecoins. They don’t fluctuate rapidly as it may occur with digital assets. The price of stablecoins depends on the dollar so they are maybe more reliable than any other.
6. Commissions are important. There’re different commissions fees depending on cryptocurrency. It may take from a few cents to transfer TRX or XRP to $3–5 to withdraw ETH or BTC.
7. DeFi platforms that are popular today use smart contracts to carry the operations. But not all the exchanges support them. You can buy and send the cryptocurrency from your local wallet to the exchange without a smart contract system. Usually, a warning message notifies you about this operation. In case you ignore it your crypto won’t reach your wallet, though it will be sent to the exchange. You can ask the exchange’s support team to help you in resolving this issue.
8. Do operations with small amounts. It will save you nerves and funds. When the service is new, please try test transferring with a low sum. Then you’ll see if everything ok with the platform if it’s a reliable resource. You’ll also check if your wallet works with it.
Bad Internet connection or technical troubles with platforms can also cause risks. For example, if the funds are withdrawn and something happens then the transaction obtains suspended status. And it may take some time to fix this and during all the time your transfer will be frozen. If the value of the currency falls you’re losing some amount.
The rules above are really important for successful cryptocurrencies transfers. They don’t require any special skills. Just know and follow them!
