Cryptocurrency has become mainstream finance for almost a decade, bringing new investors and workers to the crypto industry. While some are in it for the tech, others thrive on their highly profitable returns. But one thing they all have in common is how they make transactions. This article will tell you all about how to send crypto money.
How to send crypto money?
Cryptocurrency transactions are irreversible, universal and can’t be faked. This is all thanks to blockchain, a technology that acts as a digital ledger for all transactions simultaneously.
This makes crypto transactions a lot safer than some people think, even more so than traditional fiat transactions (if you do it right).
The first step to send crypto money is to create a wallet. This can be done in a decentralized hardware/software wallet or in a centralized cryptocurrency exchange.
You will have to turn your money into whatever cryptocurrency you want, which can be done on any crypto exchange of your preference.
To make a crypto transaction you have to make sure to get 4 things right:
- The receiver’s crypto address.
- The exact amount you want to send.
- The right cryptocurrency.
- Making transactions within the same network. For example: You can’t send Ethereum from the ERC-20 network (Ethereum’s network) to a MATIC address (Polygon’s Network).
Which wallet should I use?
There are hundreds of wallet services online that can safely store your crypto assets. It all depends on the user’s needs and how private he wants his transactions to be.
Custodial cryptocurrency exchanges like Binance, Kucoin, Bybit (and so on) are not decentralized and will hold both your coins and private keys, while decentralized wallets will make your funds accessible only to you.
It is the user’s responsibility to protect his private keys, in order to avoid phishing scams or hackings.
Can I lose my money in a crypto transaction?
Using the wrong address for a crypto transaction will send your tokens to the wrong person or to an inexisting address, in the worst case scenario.
As crypto transactions are irreversible, there’s nothing you can do to recover your money after making such a mistake.
This is why it is so important to double-check all transaction details, as well as the desired amount.
Are there limitations to crypto transactions?
Crypto transactions are limitless as long as they happen on the same network. You can send how many tokens you want across any country in the world, and it will be received in a matter of minutes.
Blockchain does not have limits and it does not forbid anyone to make transactions. This is why cryptocurrency is so important to the people, making this technology grow with each passing year.