What Should You Know About Withdrawing and Depositing Crypto Safely?

Dealing with cryptocurrency can be puzzling, especially for first-timers. For example, you must select a suitable and safe network to send your crypto coins. Unless you know that, you might send them on the wrong network. Sending a coin on an unsuitable network makes it unusable.

While you could recover the money by contacting the receiver and asking the receiver to return the funds, the entire process can be pretty problematic and result in various complications.

Therefore, it is essential to know the proper way of withdrawing and depositing crypto on blockchain networks. Since crypto addresses are compatible with various platforms, it can be easy to select the wrong one.

Here are some things that will help you with cryptocurrency transactions on the networks.

What are blockchain networks?

Before you know the complications associated with sending crypto to the wrong network, it would be helpful to get an idea about blockchain networks. They refer to decentralized digital ledgers that record transactions across a platform. Since users share the same network, it removes the need for a central authority while providing maximum security.

They are of three types: public, private, and consortium. However, a cryptocurrency might be compatible with an exclusive network. For example, BitMart supports coins like Avalanche, Ethereum, Dash, and Decentraland.

What happens if you deposit/withdraw crypto at the wrong address?

If you deposit or withdraw crypto using an incompatible address with a platform, you would probably lose your money. However, you might try recovering it by following specific steps.

When you deposit crypto coins at the wrong address, the other party will not receive the money. Therefore it is best to avoid this mistake and send a small amount to a particular address over a network. Once they confirm the payment’s success, you can proceed with more significant transactions. Most users also get confused because crypto addresses usually start with an “Ox.”

Even if that is the case, it is better to follow this step to avoid losing your funds.

Why does it happen?

Certain platforms do not support specific crypto-tokens because they weren’t built for it. Each chain consists of different blocks (things that store information), and when you attach them, they form a chain.

Now, each chain has its particular language and runs on certain cryptography. However, you will come across coins like USDC that run on multiple blockchains, but that’s an exception rather than the norm. And that is how most mistakes happen.

Before sending crypto, you choose an exchange, and once you’ve done that, the crypto-exchange offers you various blockchain network choices. Instead of checking compatibility and things similar to that, inexperienced users select one with the lowest fee or the one with the fastest processing time. It is a rookie mistake, but one best avoided.

What should you check before sending coins?

Before you deposit crypto, you should check if your network supports it. One way to do this is to check the receiving address, which should be compatible with the platform.

As mentioned earlier, many users make the mistake of ignoring this procedure while transacting. Just because a platform supports multiple addresses does not guarantee its compatibility with your network. The same rule applies while withdrawing crypto assets since using the wrong platform will completely lose funds, even if the sender sends them using the correct one. These are some security tips related to withdrawing and depositing crypto you should know. Before carrying out a transaction on platforms like Swyftx, check whether the coin supports the network.