In view of events, and in particular the collapse of the FTX platform, many investors have decided to withdraw their cryptos from centralized platforms, in order to store them in a wallet. If you are wondering how to transfer your cryptos from an exchange to a wallet, just follow the guide below.
Cryptocurrency exchange platforms
Chances are that if you own cryptocurrencies, you bought them on a exchange platform. Whether it’s an exchange centralized (CEX) or exchange decentralized (DEX), these facilities are a key part of the crypto sphere. These platforms make it possible to exchange cryptocurrencies and, by extension, to give them a value.
However, you can’t really do much with your crypto if it’s stuck in an exchange. In addition, recent events regarding the bankruptcy of FTX, also showed that keeping your cryptos on a CEX was not necessarily the best solution. But then, where can you keep it?
Once you have money in your cryptocurrency exchange account, which will likely have required you to go through Know Your Customer (KYC) checks, you will need to get a cryptocurrency wallet.
At this point, it is worth clarifying a few things. To be completely technical and precise, your wallet does not actually contain your cryptocurrency, which still exists on the blockchain.
Nevertheless, a wallet allows you to prove that you own the cryptocurrency. To do this, it uses what are called cryptographic keys. There are two types of cryptographic keys, public and private. A public key serves as an identification on the network, proving who you are. While a private key is used to indicate that you are the correct recipient of a blockchain-based cryptocurrency payment.
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If you want to get yourself a cryptocurrency wallet and if you want to make full use of your cryptos, you probably will. For this, there are many options for you.
There are wallets directly on your computer in the form of software. Alternatively, there are those that come in the form ofapplications for cell phones. There are also hardware wallets, stored on USB flash drives or other hard drives.
To find out which crypto wallet to choose, I invite you to watch this article on the best crypto wallets of 2022.
Also, when it comes to cryptocurrencies and investing in general, it is very important to do your own research. You will be able to discover the advantages and disadvantages of each type of cryptocurrency wallet, as well as find the one that suits you best.
For example, if you want to stake your crypto, in other words, if you want to put it in a liquidity pool for a fixed period of time, you will not only need to have a crypto wallet, but also make sure that you have a crypto wallet designed for allow staking.
Either way, once you’ve done all of that, it’s time to transfer your cryptocurrency — not your keys, not any fiat currency you may have left lying around — from an exchange to a wallet.
First, you need to make sure you know your wallet password. This is critically important, because in many cases if you don’t know your password, you won’t be able to recover it. It means you don’t can no longer use your wallet.
It is also necessary know the address of your wallet. This can be long, although there are services that make it shorter and easier to remember. But, again, if you forget your address, you will not be able to access your crypto.
You then need to go to the exchange site you are using and click on the withdrawal option. Once you’ve done that, then you need to enter the details you need, such as your wallet address and any relevant passwords. After that you have to confirm that you want to withdraw.
Then, depending on the blockchain speed on which your exchange operates, you will have to wait a bit. When you receive your money, you may notice that it is less than what you withdrew. This is because the blockchain, exchange, or both charge transaction fees.
This is how to withdraw your crypto from an exchange to your crypto wallet. It is important to keep your information secure. Indeed, whether it is your wallet address or your password for your wallet or your purse, hacks are more frequent than you might think.
Finally, it is crucial that you carry out your own extensive research on wallets, exchanges and cryptocurrencies. This way, you can ensure that you are selecting the right services or products that suit you and your wallet.
Also read: The worst places to keep your seed phrase!