Each cryptocurrency operates on different platforms and servers. This means that putting one coin in your wallet will differ to another type of cryptocurrency. This means, sending Bitcoin, Litecoin and Ether may all require different methods.
The method is quite simple, you first register a cryptocurrency wallet. To send a payment or receive one, you input the public address of the recipient and sender.
Steps To Transferring Money
- Login to your cryptocurrency waller
- Navigate to the send/receive tab on the dashboard.
- You then select wether you want to receive or send coins. *If you are exchanging coins, you are only able to send the same cryptocurrency. So for example Bitcoin to Bitcoin transactions are allowed. Bitcoin to Ether are not.
- To Receive cryptocurrency is much easier than to send it. If you are receiving a coin, then all you must do is share your public wallet address. If you are in person, they can scan the QR code associated with your wallet.
- To Send cryptocurrency you first need to enter the public address of the person you are sending funds to. Then input how much you want to send to the recipient and then send. Before you send the funds, remember to take transaction fees into consideration. Also, before you finalise the transaction and send the fees, remember to check the amount you input multiple times. Because it is very easy to send the wrong amount and a zero in the wrong place can make all the difference.
If there is still uncertainty with transaction of your cryptocurrency, then check with the FAQ section on your wallet.
Once a coin transaction takes place, it may take some hours for it to show up in your wallet. Some transactions occur instantly, but depending on traffic it may take a while. In most wallets pending transactions are visible, similar to the way you see bank transactions.
Cryptocurrency Transaction Fees
One major thing that people overlook when doing cryptocurrency exchanges are the transaction feed. Services like CoinBase have been bashed recently for excessive fees. The fees you encounter vary from token to token and can get quite expensive depending on what platform you use and when you do it. Last year, the average Bitcoin transaction fee was $4USD. Bitcoin transaction fees are low, with the average transaction fee for last June being only $0.14USD.
Every company needs to make money to keep going and cryptocurrency exchanges make money by transaction fees. So they get a piece of your transaction.
For people using cryptocurrency as an investment, this can be frustrating because when you get less coin for your money when purchasing the token. Then when you go to sell, the transaction fees will also cause you to lose money.
It is very important you research the exchange before you begin trading on it.
Which Exchange Should You Use?
When deciding on what cryptocurrency exchange you first must understand the differences between the exchange methods.
Direct Trading – By using a direct trading platform, you are able to exchange your crypto coins with people from across the world with relative ease. There is no fixed price for direct trading, meaning that the seller can set their own exchange rate.
Broker– If you use a broker, this is a website that you can buy cryptocurrencies at a set price. The price is set by the broker and is sometimes higher than the normal market price.
Trading On A Platform– On a trading platform, you can be connected with sellers and buyers of cryptocurrencies. The platform will impose their transaction fees.
Features Of Cryptocurrency Exchange
Payment Methods –When deciding on which cryptocurrency exchange to use you should think about which payment methods they accept. If you are a seller and have exchanged your cryptocurrency for USD or GBP then getting that money into your bank account may be a real issue depending on which exchange you go for. If a platform has only a few payment methods, then maybe you should consider a different platform. If you purchase cryptocurrency with a credit card, then the platform will require identity verification. This may come at a higher price due to a higher transaction fee. If you are thinking of wire transfer, banks take longer to process the transaction. So you may not see your money for some time..
Reputation– With just one search on Reddit, you can find a history of most crypto exchanges. People will often post their experiences with a platform on the respective subreddit and you can read about any issues associated with a specific platform. Some large exchange platforms have been accused of slow transactions and absurdly high fees. Previous research should be done on a platform, especially if you have a high volume of crypto coins.
Location Restrictions– Specific user features are unavailable for users in some countries. If you are in UK/USA then you should be fine. But other countries may be subject to restrictions.. depending on which platform you use. So make sure you know that the platform you intend to use can facilitate your requirements.
Exchange Rate – Exchange rates can vary significantly depending on which exchange you use. Some platforms can change 10% more than their competitor. So try find out what exchange has the most reasonable rate for your currency. This will avoid any nasty surprises when it comes to converting your coins from your crypto wallet.
By researching which cryptocurrency exchange suits you the most, you will cut out any trouble with the transfer Cryptocurrency To Wallet action.
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