One of the main benefits of using the blockchain technology is that you can send and receive money without third-party involved. It is a fast and straightforward process where you can instantly send funds from one digital wallet to another.
Moreover, the whole process requires the use of a platform, such as the online crypto exchange. Also, the most affordable and convenient solution is to use peer-to-peer transaction.
Therefore, the three options for sending are between exchanges, between wallets, and from a wallet to exchange and vice versa. Here are some tips that will help you make the whole process faster and safer.
Transactions on Online Exchange Platforms
When it comes to this model, it is quite simple. However, there is one detail that could lead to potential issues, and even loss of your crypto. It is about the withdrawal network.
The most common are BNP Smart Chain (BEP20), Tron (TRC20), and Ethereum (ERC20), and Solana. It is crucial to select the same network address for both deposit and withdrawal.
When it comes to some technical details, it’s all quite simple. All you need to do is to log in, select the type of crypto you want to send, add a recipient by entering the wallet address or QR code, and the transaction is ready.
Another important detail to know is that you will have to pay the fee. It is not the same on all platforms, making it a significant factor when choosing one. On the other hand, you should never focus solely on these fees. Some cheaper or free platforms may have potential security issues. Also, the fee is often quite low, only between 50 cents and $1 on average per transaction.
The time is also not the same on all platforms. For example, sending crypto on TRC-20 will take around 2 minutes to complete, while Kraken is slightly slower, with 5 minutes on average. The reason why we are waiting is because the system must confirm the transaction.
Wallet-to-Wallet Transfers
Crypto wallets are the type of software that is keeping the access key for the digital assets. The most popular options are Hardware and Online wallets. There is also a paper wallet, which you is like a short-term solution here can print the public and private key, and choose to print either the code or QR codes.
Online wallets are the most convenient. You can install the software on your PC or mobile device, and access your digital funds whenever you want with ease.
The safest solution are Hardware wallets. You can store crypto on a device similar to USB, and connect to the internet only when you want to make a transfer.
The time required can be from 1 minute to few hours depending on the type and amount of crypto you are sending. For BTC, you can expect it to last from 10 minutes to a whole hour.
Sending Between Wallets and Exchanges
This is the third available solution, and it as simple as previous two. Everything is covered with key addresses and codes. Therefore, whenever you want to send crypto, you will need a recipient address.
Therefore, the person that is receiving funds will have to generate a code as well. If you want to move crypto from the platform to your wallet, all you need to do is to select the type and amount, and add the details of your wallet.
Coinbase is known as one of the best for simple transafers. You can choose between off-chain and on-chain transactions.
The first one lets you use a phone number, username, or email to send funds to another user. The great part is that there are no fees included at all. The on-chain allows you to send crypto from your Coinbase account to external wallets.
Additional Tips
One of the main concerns is related to safety. We already seen a lot of scams, and even some of the best online exchange were victims of cyber-attacks or variants of trading apps like “Quantum AI”.
If you are not sure whether the platform is safe or not, choose a small amount to send for the start. This is also great for beginners. A potential mistake won’t be a costly one in this case.
Another suggestion is to always use the copy/paste feature. The addresses are long and contain various characters. Therefore, trying to type one manually could lead to mistakes. Most platforms today have QR codes, but if you approach one without it, copying is always the most convenient and safest approach.
Furthermore, we already mention that there is a timeline involved in the process. The system must validate the amount you are sending. In that matter, you don’t need to worry that there is something wrong if you are waiting for half an hour or more. We also have to add that platforms with higher fees are usually faster.
Since security should always be in the main focus, additional layers of protection are necessary. The most common one is 2FA. It will require you to generate a unique code each time when you are making a transfer. This code will expire after few minutes.
What is the Safest Solution?
The safest one is to always keep your crypto on an offline hardware wallet. Choosing online platforms instead may seem more convenient but the problem is if that platform faces hacker attacks.
Moreover, be sure to keep the codes safe. Losing one will make your hardware wallet completely useless. There is no way to break in.
Also, when you are connecting it to a PC, make sure that the connection is secure. Never use public Wi-Fi, and always choose a more complex password for the one you are using at home.
The Bottom Line
As you can see, the whole process is quite simple and convenient, but there are some details to pay special attention to, especially when it comes to security.
Even though there are additional fees, ones you will face when using banks are much higher. Also, the waiting time of 10 minutes or even a whole hour is still much faster when compared to banking system where the process could take a day or two to complete.