How to Safely Send and Receive Crypto with a Cryptocurrency Wallet

On the surface, sending and receiving cryptocurrencies seems almost too basic a topic to discuss in an article.

02:03 11 January 2023

On the surface, sending and receiving cryptocurrencies seems almost too basic a topic to discuss in an article. However, treating it with such laughable levity can quickly turn dangerous. Remember, the blockchain is a decentralised ledger, thus, its transactions are irreversible.

Therefore, any error a sender makes is permanent. Hence, both the sender and receiver must be extra cautious in ensuring the crypto assets get to the right cryptocurrency DeFi wallet. This is even besides the terrible actors always waiting for you to slip into their crafty traps.

 How to send cryptocurrency

When sending cryptocurrency, you must have a cryptocurrency wallet address from which you’re sending it, and a receiving address to which you’re sending the crypto asset. 

Note your transaction fee, copy and paste the receiving address and double-check it after. Then ensure the receiving address' blockchain is compatible with the crypto asset you want to send. 

If sending Ethereum (ETH), you’d need to ensure that the receiving address is an EVM-compatible address.

Sending Cryptocurrencies from an exchange/custodial wallet

Regardless of why you’re sending crypto assets from an exchange — either to catch a trading arbitrage or store crypto in an external DeFi wallet, etc. — the exchange registers transferring crypto out of your account with them as a withdrawal.

To send the crypto asset, log into your account, click withdraw,select the cryptocurrency you’d like to withdraw—BTC, ETH, BNB, etc.,—then paste the receiving address in the transfer widow.

Make sure you have enough of the exchange's native token to cover the transaction cost (gas fee) and withdrawal fees (if applicable).

Most modern wallet addresses now have a QR code scanner, so you could simply request for and scan the receiving wallet’s QR code to reduce your chances of mistyping the address characters.

Sending Cryptocurrencies from Software DeFi Wallet 

Regardless of the software wallet (desktop, apps, or web browser extensions), to send cryptocurrencies from a cryptocurrency wallet, you need to:

• Log into your wallet.
• Navigate to the crypto you want to send.
• Select the amount
• Copy and paste the receiver address
• Double-check the pasted address
• Confirm the gas fee and transaction

Sending Crypto from Hardware Wallets

Hardware wallets are offline crypto storage devices like USB drives in which you can store your cryptographically generated public-private key pair and crypto assets.

Naturally, specific hardware wallets’ configurations might differ. However, to send your cryptocurrencies, connect the wallet to a computer with internet access and enter your password to access the wallet’s interface.

Receiving Cryptocurrency

 To receive cryptocurrencies, you must have a receiving wallet address compatible with that crypto asset's blockchain.

•  Log into your wallet and select the crypto asset you want to receive. 
• Search for the crypto asset's name and create a token address if it’s not already available.
• Copy the address or take the QR code’s screenshot (If your wallet has one).
• Paste in a separate document and cross-check it once again.
• Share it with the sender.

How do I Track My Incoming Cryptocurrency?

The blockchain's current congestion and the transaction fee you paid could sometimes delay your expected cryptocurrency—since blockchain transaction validators verify transactions based on the number of transaction fees paid.

Alternatively, some crypto networks' block sizes can also affect the transaction verification duration—thankfully, Ethrerum'sEIP 1559 update improved Ethereum’s block size and gas fee efficiency.

Regardless, request the transaction’s hash from the sender. With that, you can track the transaction’s state on its respective blockchain explorer. Here are some best practices for safe cryptocurrency transfers:

• When sending cryptocurrencies, to prevent errors, ensure to always copy and paste the receiving address and not manually type the characters. Then, after pasting it into thetransfer window, double-check the address again. 
• Why? Crypto hackers could orchestrate clip-board hijacking malware to swap the token address you copied to a similar one controlled by them. So that the address you paste will be theirs and not the original intended receiving address.
• Conversely, since terrible actors could mimic this Trojan malware with creative phishing attacks, be extra cautious of the links you click and the websites you interact with.
• Try to understand your transacted asset's blockchain’s transaction verification duration; research how long the blockchain of the asset you’re sending or receiving takes to verify transactions under high congestion, specific transaction fees and block sizes.
• You might also want to secure your wallet with 2-factor authentication.
• Update your phone and computer’s operating systems to the latest versions.
• Only download a decentralised cryptocurrency wallet (mobile, extension, or desktop) through the link provided on the wallet providers’ official website.

Conclusion

Cryptocurrency wallet interfaces are progressively becoming more user-friendly with tighter security and technical features. However, don’t fall into the trap of being over-complacent and lazy. 

Most crypto scams and failed cryptocurrency transactions are because of exploited human errors rather than objective technological incompetence.

Therefore, research and select the best cryptocurrency wallet that suits you, cross-check the receiving wallet’s blockchain and address, pay a reasonable transaction fee and track your transaction on the blockchain’s explorer. 

Ensure you do everything you can so that if the worst happens, and the transaction goes south, your mistake or carelessness won’t be the culprit.