Transferring crypto from an exchange is essential, even if you have invested a smaller amount. Pick a hardware wallet of your choice and transfer your purchased assets to that wallet to provide the much-needed security to your assets.
You may know it or not, but transferring your purchased cryptocurrency from the exchange to a secure crypto wallet is one of the crucial steps that you must take to avoid losing it. Though crypto exchanges claim to be secure, they always pose some risk to your assets. Even if you are not aware of the associated risks, you must know the process to transfer crypto from an exchange to a hardware wallet. And this is what we are going to discuss in this article.
Why is transferring crypto to a wallet significant?
Sometimes, even the most trustworthy exchanges can be hacked due to a lack of security features and scammers getting more skilled day by day. Not just that, there are many other reasons why you should also consider transferring your cryptocurrencies from a centralized exchange to a secure hardware or cold wallet. Find all the reasons listed right below:
- You don’t have complete control over your funds when they’re on a centralized exchange.
- Your exchange account may not be accessible in some countries or places. In short, geographical restrictions might be there.
- A cryptocurrency exchange can be hacked, and sometimes, misappropriation of funds is also recorded.
- Exchanges might impose capital controls, such as withdrawal limits, which might hinder your crypto trading experience.
- At times, a crypto exchange might go down due to high trading activities, which hinders the process to withdraw your funds.
With that understood, let us now go ahead and find out what the best way is to protect your assets by transferring them to a secure hardware wallet.
First things first, choosing the right hardware wallet
Before anything else, the first thing that you need to do is compare hardware wallets to software wallets. After comparing the two wallets, I am sure you understood the significance of a hardware wallet. The reason why everyone should prioritize using a hardware wallet, despite it being costly, is that it keeps your crypto offline, completely away from any hackers’ reach. Since there are multiple hardware wallets to choose from, make sure you know how to pick the best amongst them. Here are a few things you can look forward to in a hardware crypto wallet:
- Strong security system- This means it should allow you to store your crypto offline and make it less vulnerable to attacks/hacking.
- Control over crypto- All your crypto keys remain under your control.
- Crypto protection, even if your device is compromised- A hardware wallet protects your cryptos even if your device is lost or damaged.
- Multi-asset support- Make sure that the wallet you’re using supports the crypto you’re planning to buy.
- Visible and clear transaction details- Your wallet should be able to display the details of your transaction clearly.
- Recovery options- It should also allow you to restore the wallet using the seed phrase.
Key steps to transfer crypto from exchange to hardware wallet
Right after deciding which wallet you are going ahead with, you are ready to follow the next steps. So, stay tuned to learn those steps and make sure to be very careful while applying them:
Suggestion: You can choose a Ledger or a Trezor wallet, which are the top-ranking hardware wallets among many, as they are highly secure, support multiple assets, and have a strong user-base.
Step 1- Setting up a self-custody wallet
After picking your wallet, you can take the necessary steps to set up your wallet. If you are a complete beginner, you can watch some videos available on the web for the wallet setup. Or, you can also refer to the instruction manual to get started. During the setup, make sure that you carefully note down the 12 or 24-word Secret Recovery Phrase.
Step 2- Transfer assets from your exchange
Your wallet has a public address, which works as an identifier and is the most important element when transferring crypto from an exchange. Now, you have to fetch your wallet address, copy it, and navigate to the exchange from which you are transferring crypto.
For example, you can sign into your Coinbase account and then choose the option to “Withdraw” or “Send” your crypto. Now, use the wallet address that you copied previously and then enter it in the “Recipient” field. Thereafter, you simply need to enter the amount and confirm your transaction after verifying the details carefully.
Step 3- Verify the transaction on your wallet
After carefully applying the steps listed above, you need to ensure that your transferred assets have arrived in your wallet and the process was successful. If you are unable to see the updated balance, you can check it after a while. If it is still not there, you can use a blockchain explorer tool such as Etherscan (for ETH) to check the status of your transaction.
The Bottom Line:
Transferring crypto from an exchange to a hardware wallet is an easy procedure. However, the actual process may slightly vary based on the exchange or the wallet you are using. While conducting this procedure, make sure no one is around you. Apart from that, while setting up the wallet, take necessary precautions to safeguard your 12 or 24-word Secret Recovery Phrase.
FAQs:
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Is it safe to store crypto on a hardware wallet?
Yes, crypto experts from Coins Everything advise users to store their cryptocurrencies on a hardware wallet because doing so adds an additional layer of security to their private keys by keeping them offline.
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Which is the best hardware wallet?
Well, there are many crypto hardware wallets available in the market. However, the most popular among them are Ledger and Trezor wallets. You can also pick another wallet after carefully analyzing them and their features.
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How do I transfer BTC to a Ledger wallet?
After generating your BTC wallet address on Ledger, navigate to the exchange interface, where you need to click the “Send” or “Withdraw” option and use the wallet address to receive crypto into your wallet.
Disclaimer:
Investing in crypto and NFTs is certainly something that comes with some risks. However, you should undergo careful consideration before taking any steps. Please note that the information provided here should not be considered an investment or financial advice. If you take any step by referring to the given details, you will be responsible for your own actions.
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