How to Transfer Cryptocurrency: 8 Things that Make You Lose Money

How to Transfer Cryptocurrency: 8 Things that Make You Lose Money

Cryptocurrency
October 6, 2023 by Editor's Desk
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Cryptocurrency transfers are nothing new to active traders as they happen quite frequently. What if you are a novice, though? In this article, we will go into great detail on how to send cryptocurrency safely and without losing money. How to Transfer Cryptocurrency You need to know the recipient’s address and the name of the
How to Transfer Cryptocurrency 8 Things that Make You Lose Money

Cryptocurrency transfers are nothing new to active traders as they happen quite frequently. What if you are a novice, though? In this article, we will go into great detail on how to send cryptocurrency safely and without losing money.

How to Transfer Cryptocurrency

You need to know the recipient’s address and the name of the cryptocurrency you’re sending in order to send a cryptocurrency. The recipient’s (user’s) address is a string of letters and numbers. Each network has a distinct address.

 

Whether you are utilizing an exchange, or a wallet will affect the transfer process. An approximate action plan is provided below:

  • Select the coin you want to send
  • Copy the address for the cryptocurrency you have chosen by opening your wallet or exchange. The recipient can do so as well. Choosing the right network at this point is crucial because some coins may support numerous networks.
  • Once you have the address, put it in the relevant form along with the transfer amount.
  • Finally, confirm the money withdrawal. In most cases, you need to confirm the transaction in two different methods if your coins are coming through an exchange. For example, 2FA and eMail.

Despite the straightforward method, it’s still possible to lose money. There are numerous causes, but the most frequent one is an error in a letter or number in the address. As a result, we have listed the issues that can arise when transferring cryptocurrency and discussed how to avoid them.

Issue You Can Face

There is a lot of information that needs to be verified when transferring cryptocurrency. If you made a mistake, you will have to part ways with your money because all transactions made on blockchain are irriversible.

Wallet and Currency Should Be Connected to a Specific Coin

For instance, you will never get your Ethereum coins back if you transfer them to a Bitcoin address. Today, the majority of exchanges have a feature on the page that enables you to see such errors: if you input the incorrect address, a warning will be displayed.

Entire Address Needs to be Copied

The user typically copies the address manually by cursor-selecting it. By doing this, you run the danger of missing the final or opening character, which will result in an inaccurate address. You’ll incur financial loss as a result.

On many websites, there is a built-in feature to copy the address; we advise using it. With just one click, it will copy the address from your wallet. Nevertheless, verifying is still advisable in case the address was not properly copied.

If you don’t verify your address, your money might instead be directed to a website, phone number, or list of words that was still on the clipboard rather than to the wallet you intended.

Beware of Phishing

Scammers frequently use fake pages they create on a variety of websites, including: wallets, exchanges, and many other services.

When a phishing website is well-made, it can be incredibly challenging to tell it apart from the actual one. You will lose your money forever if you share your information or send cryptocurrency to the phishing wallets.

In order to avoid phishing, you have to stay informed on the latest bitcoin news, analyzing all the important headlines in the world of crypto. By learning about cases of fraud and the newest security measures that you can take, you can shield yourself from many risks associated with transferring, using, and purchasing cryptocurrencies online.

Double Check Your MEMO

Platforms can identify accounts of different clients by using tags, which are short pieces of code. Typically, it is only advised in specific circumstances. In particular, for sending such cryptocurrency like Ripple (XRP), EOS (EOS), Stellar Lumens (XLM), NEM (XEM), Binance Coin (BNB), and Monero (XMR).

The tag is located in your exchange account next to the wallet address. Without your explicit instructions, the cryptocurrency will be sent to the exchange but not to your account. Contacting technical support may help you resolve the issue, but the possibility is slim.

Use Stable Coins

You run the risk of losing some of your money when sending cryptocurrency because of changes in exchange rates. Use stablecoins like BUSD, USDT, USDC, and others to avoid this.

These currencies’ prices are tied to the dollar, so they never abruptly drop by 15-20%, as most other digital assets frequently do.

Check the Commissions

Exchanges might include withdrawal fees. Every coin has a different commission. You’ll be able to save some money by selecting the cheapest coin. For instance, withdrawals of ETH and BTC will cost several or even tens of dollars, whereas TRX and BNB token transfers will just cost a little commission.

Make Sure that the Exchange Support Smart Contracts

A notice informing you that the exchange cannot accept smart contracts is typically delivered to the wallet address you provided. If you don’t pay attention to it, the money will still be able to get to the exchange but won’t be credited to your account. Technical support is frequently used to tackle these issues.

One customer delivered $1 million in USDT stablecoins to a smart contract address in 2020 as an illustration, rather than to his wallet. The money was regarded as lost as a result. The trader, however, struck gold when Paolo Ardoino, technical director of Tether, stepped in to help. Paolo gave the user back all of his belongings and advised him to be more cautious when making transfers.

Start with a Test Transaction

Make your first transfer with a small amount, especially when using new providers. In this way, if the new platform turns out to be a fraud or doesn’t support your wallet, you won’t lose any money.

Furthermore, there is always a chance that the transaction will freeze as a result of network congestion. The time it takes for this to happen could be many hours, during which nobody will be able to access the coins because they would be frozen. Due to the supplied digital asset’s declining value during this time, money may be lost.