How to transfer cryptocurrency to another person

Purpose of Bitcoin

The primary goal of the first cryptocurrency, Bitcoin, was to create a decentralized system that allows people to transfer money directly between users, without the involvement of banks or any other financial institutions. This became possible with the advent of the "peer-to-peer electronic system," which does not require the participation of central banks, commercial banks, or even the state in money transfers. In short, no third-party intermediaries. One of the main features of this system is the use of blockchain technology which ensures the transparency of all your transactions.

Why use cryptocurrency transfers?

If you have the idea to support someone with donations, pay for services, repay a debt, or simply give a gift, but you don't want any financial organizations or a state agency to know about your actions, then a crypto transfer is ideal for you. How do you transfer cryptocurrency to another person? It's very simple – transfer it from your crypto wallet to another wallet or transfer your digital assets from an exchange platform to the recipient's wallet. We will examine these processes in this article.

Features of transferring cryptocurrency through crypto wallet

To transfer cryptocurrency to another person, you first need to create a cryptocurrency wallet. This digital wallet can be located on a major trading platform (crypto exchange), on your computer or smartphone as an application, or even in an offline format.

It's essential to understand that cryptocurrency is not stored in the wallet itself; it is stored only in the blockchain. The crypto wallet is just a place to store the private key needed to access the cryptocurrency.

Think of it like traditional money – it is not stored on the bank card itself but in a bank account. The bank card is simply a private key that provides access to your money. When you use it at an ATM, you identify yourself and your account.

Steps for transferring cryptocurrency though crypto wallet:

• Create a crypto wallet. Choose a wallet that suits your needs. It can be on a major trading platform, your computer, smartphone, or even offline.
• Access your wallet. Open your crypto wallet application or platform.
• Initiate the transfer. Navigate to the "Send" section.
• Enter the recipient's address. Paste the recipient’s wallet address into the designated field.
• Enter the amount. Specify the amount of cryptocurrency you want to transfer.
• Adjust fees. If your wallet allows, adjust the transaction fee to your preference.
• Verify information. Double-check all the entered details to ensure accuracy.
• Confirm the transaction. Confirm the transfer and complete the process.

Steps for transferring cryptocurrency though through exchange platforms

To transfer your digital assets from an exchange to the recipient's wallet, follow similar steps on the exchange platform:

• Log in to your exchange account. Access your account on the exchange.
• Navigate to the withdrawal section. Select the option to withdraw cryptocurrency.
• Enter the recipient's address. Provide the recipient’s wallet address.
• Specify the amount and details. Enter the amount and any additional required details.
• Verify and confirm. Double-check the information and confirm the withdrawal.

Important considerations

Always ensure that the wallet addresses are in the same cryptocurrency to avoid losing funds.

Use the full copy-paste function for addresses to avoid errors.

Keep your private keys and seed phrases secure and private.

When using exchanges, follow their security protocols for restoring access if needed.

By following these steps and considerations, you can safely and effectively transfer cryptocurrency to another person.

Components of crypto wallet

Crypto wallets differ depending on how they store the password to access your digital assets in the blockchain. A crypto wallet consists of three components:

A key is a long password consisting of characters. If you have access to these, you have access to the crypto wallet itself. If you own the crypto wallet, you have both keys.

A public key is the address of the crypto wallet, similar to the details of a bank card. If you need to receive a transfer to your crypto wallet, you give this address to the sender.

A private key is the access password. It must be saved and never lost. If we draw parallels with a bank card, this is like the CVV code on the back of the card.

A seed phrase is a sequence of random words to recover a lost or forgotten private key.

If you forget the PIN for your bank card, you usually go to the bank, show your ID, and they restore access to your account. For a crypto wallet, the seed phrase serves a similar role. The seed phrase is invented when you create your crypto wallet. It can consist of 12 or 24 words arranged in a specific order.

If you lose both the seed phrase and the private key, access to the crypto wallet will be permanently lost. However, this rule does not apply to wallets on exchanges: there, you can easily restore access by presenting your ID.

There are two types of crypto wallets:

It's always important to carefully choose a crypto wallet for your digital assets. If you're not careful, you can easily lose all your accumulated cryptocurrency funds. Let's list the most popular crypto wallets for storing cryptocurrencies:

• Trust Wallet
• Exodus
• Metamask
• OKX Wallet
• Tangem
• Ledger
• Trezor

Now, let's take a detailed look at using a crypto wallet with the example of the Trust Wallet mobile app.

Trust Wallet is the official crypto wallet from the Binance crypto exchange. With it, you can quickly and securely receive cryptocurrencies, store them, or send them to others.

Steps to use trust wallet:

Install the App. First, install the Trust Wallet app and follow the on-screen instructions.

Select cryptocurrency. Choose the cryptocurrency you intend to transfer from the list of offered options, such as Bitcoin.

In any crypto wallet or exchange, you can easily find the address and QR code associated with it, which are essential for transferring Bitcoins.

When withdrawing cryptocurrency from an exchange, a fixed fee will be charged – usually no less than $10. You will receive information about the withdrawal status via email.

The processing time for your transfer depends on the exchange, sometimes it may take around an hour.

Within a short time (usually less than 30 minutes), your transfer will be reflected in the Trust Wallet app. When you click on it, a window with additional information will open – sender, time, and amount of the transfer. Once the status changes to "Received" or "Confirmed", it means the transfer is complete.

Features of transferring stablecoins

Compared to transactions involving Bitcoin, operations with stablecoins are not as straightforward and require more detailed attention from you.

To illustrate the process of transferring cryptocurrency to another person, let's use one of the most well-known stablecoins as an example – USDT from Tether. This stablecoin is pegged to the US dollar, meaning each USDT is strictly equivalent to one US dollar, which ensures its convenience and, consequently, its popularity among crypto users. Stablecoins are valued for their ability to facilitate international payments while bypassing any state sanctions and restrictions.

USDT is unique because it is available on various blockchains and supports multiple token standards. For instance, the USDT version on the Tron blockchain adheres to the TRC-20 standard, meaning it can only be transferred to wallets within this network. The version released on the Ethereum blockchain adheres to the ERC-20 standard, meaning it can only be transferred within this network. When selecting the desired coin in the app, the corresponding standard will be displayed in the upper left corner.

To make a transfer in the Tron network, in addition to USDT, you will need some TRX coins to pay the transaction fee. The balance of USDT and TRX and the amount required for the fee are usually displayed automatically in the app window.

Two ways to transfer cryptocurrency from wallet to wallet

How do you transfer cryptocurrency to another person, specifically from your wallet to another? This question remains relevant, even for experienced crypto users. There are two main ways to do this:

• Manual transfer
• Transfer using a unique link – deep link

Let's talk about the first case. There are many different off-exchange wallets available, such as MetaMask, Trust Wallet, Atomic Wallet, etc. You can use any of these wallets.

If you are going to receive a transfer from someone else, you need to copy the address of your wallet for the corresponding coin and send it to the sender. It is important to specify which currency you intend to receive. The sender, in turn, must select the desired coin in their wallet, paste the address you provided into the recipient field, and execute the transfer.

Keep in mind that the names of some currencies may differ in various wallets. For example, if you want to send USDT through the TRON network, your wallet (e.g., Coinomi) may not support this token, leading to an erroneous transfer (i.e., the funds may not be received by your recipient).

Additionally, not all wallets support all types of cryptocurrencies. Therefore, it is important to know exactly which coins your crypto wallet can accept to avoid errors during transfers.

Summary

Manual transfer:

1. Use an off-exchange wallet like MetaMask, Trust Wallet, Atomic Wallet.
2. Copy the wallet address for the desired coin and send it to the sender.
3. The sender selects the coin, pastes your address into the recipient field, and completes the transfer.

Deep link transfer:

1. Use the wallet app’s feature to generate a unique link.
2. Share the link with the sender to facilitate the transfer.
3. Always double-check compatibility and the correct wallet addresses to ensure smooth and error-free transactions.

How to transfer cryptocurrency to another person using a deep link? For this, you can use the special service "Punkto," which allows you to create universal links for free.

You need to enter the address for receiving crypto coins from your wallet once. Then, deep links for each wallet will be generated on your personal page. When you click on the desired link, the sender will be able to transfer cryptocurrency to you (e.g., Bitcoin).

For those who prefer traditional methods, the same page will provide a regular link to the currency account, which you can copy and use for manual transfer as described above.

This universal link leading to your personal page with addresses can be sent to anyone who wishes to make a transfer to one of your accounts.

You can add addresses for cryptocurrencies from wallets like MetaMask, Trust Wallet, Coinomi, Atomic Wallet, or Wallet to your universal link page.

Transferring cryptocurrency to bank card

How do you transfer cryptocurrency to another person using a bank card? You can transfer digital assets to the bank card of another person, issued by VISA and MasterCard payment systems, using various methods (exchanges, crypto exchanges, payment systems, wallets, P2P platforms, or Telegram bots). Some crypto ATMs also support transactions with these cards, meaning they do not use cash.

However, it is important to consider whether such receipts on the card are legal. In most countries of the world, except for some states in Asia and Africa, transactions with cryptocurrencies are not illegal per se. However, it is crucial to consider the tax legislation of the specific country and pay taxes on each profit received this way if necessary. This is an important condition if you do not want to have problems with tax authorities. And usually, no one wants that.

Popular crypto exchanges for direct or P2P card withdrawals:

• Bybit supports the P2P market for withdrawing fiat money to a card.
• OKX also allows fiat withdrawals to a card through P2P.
• Binance. Funds can be withdrawn via P2P and directly (directly is not available for all fiat currencies).
• MEXC allow withdrawals only through the P2P market.
• CommEX. Funds can be withdrawn to a card both through P2P and directly.
• BingX allows withdrawals to a card through the P2P market (by selling cryptocurrency).
• HTX. Money can be withdrawn to a card by exchanging with other network participants in the peer-to-peer market.
• KuCoin also offers peer-to-peer trading, which is a very convenient way to withdraw to bank cards.
• Bitget allows converting cryptocurrencies to fiat money and then to a card through the P2P market.
• Gate.io also supports the P2P market.
• Phemex offers peer-to-peer trading, allowing the sale of cryptocurrency and its withdrawal to a bank card.
• EXMO allows direct withdrawals to cards from fiat accounts.
• Payeer Exchange serves both as a crypto exchange and a crypto-fiat e-wallet from which funds can be withdrawn directly to cards.

Transaction fees

Cryptocurrencies operate on decentralized systems, meaning the validation of all transfers is performed not by oversight bodies or states, but solely by the network participants themselves. These can be miners in networks using the Proof of Work (PoW) consensus algorithm or stakers using Proof of Stake (PoS).

It is important to understand that any transaction will incur a fee to those validating these operations, making fees an integral part of all transactions in the network.

Types of fees

Fees can be dynamic, meaning their amount changes depending on the current network load. During peak times, there may be a queue of transactions, with higher fee transactions being prioritized. Dynamic fees adapt to real-time market conditions.

Some applications allow setting a fixed fee. For example, in the Bither app for BTC, users can choose the fee level from "normal" to "low" and "lower" (lower cost) to "high" and "higher" (higher cost). In some cases, an arbitrary fixed value can be set.

Fee recommendations

It is recommended to set an optimal or higher fee value based on network load. Remember the saying, "The miser pays twice," meaning saving on fees can lead to delays and various transaction issues.

How to transfer cryptocurrency without risk?

Transferring cryptocurrency is a frequent task for those who store such funds in their virtual or physical wallets. We've already understood how to transfer cryptocurrency to another person. Now let's figure out how to do it safely.

Mistakes can vary – from incorrectly copied addresses to forgotten tags. So how can we avoid such problems?

The transfer process always starts with selecting the cryptocurrency and copying the address on an exchange, wallet, or another platform. After you enter the recipient's address and the transfer amount, you confirm the withdrawal. This step usually requires email and two-factor authentication.

Tips for safe cryptocurrency transfers

Ensure matching cryptocurrencies. Always verify that the coins and wallet correspond to the same cryptocurrency. An error at this stage means the funds will be lost forever. Modern exchanges have warning functions for incorrect addresses to help avoid mistakes.

Careful address copying. Always use the copy function and double-check the address, especially if the platform is lagging. Verify the sending and receiving addresses by checking the first and last two characters of the address, though a full check is more secure.

Beware of malware. Malicious programs can change copied addresses to those of attackers. Use up-to-date antivirus software to protect against these threats.

Avoid phishing websites. Phishing websites can disguise themselves as legitimate platforms, exchanges, or wallets. It can be hard to distinguish between real and fake websites. If you provide your information or transfer funds on such websites, you can say goodbye to your money.

Check tags for exchange transfers. Always verify the tag when sending funds to an exchange to avoid errors in crediting funds to your account. The tag is a small code that helps trading platforms distinguish between participant accounts. Missing the tag means the funds will transfer to the exchange but not to your account. If this happens, contact support, although help may not be guaranteed.

Tokens that may require a tag:

• Cosmos (ATOM)
• Stellar Lumens (XLM)
• NEM (XEM)
• Binance Coin (BNB)
• EOS (EOS)
• Ripple (XRP)
• Monero (XMR)

Minimizing risks with stablecoins

To minimize risks when transferring cryptocurrency, consider using stablecoins like USDT, BUSD, and USDC. These assets are pegged to the US dollar, so their value is not subject to the sharp fluctuations characteristic of many other digital assets.

Pay attention to fees. Withdrawal fees can vary depending on the chosen cryptocurrency, offering opportunities for savings. For example, withdrawing BTC or ETH might cost around $3-5, while transferring XRP or TRX could be just a few cents. Quite a difference, isn't it?

DeFi Platforms and Smart Contracts

In 2020, DeFi platforms operating through smart contracts became popular among crypto users. They allow network participants to buy crypto coins from a local wallet and send them directly to an exchange.

However, not all exchanges support smart contracts. There is often a warning about this next to the wallet address on the platform. Ignoring it means your funds will reach the exchange but won't be credited to your balance. Such issues can be resolved through support, but it’s best to avoid them.

Testing with small amounts

If this is your first transfer, don't start with a large amount. Try transferring a small sum first, especially when using an unfamiliar platform. This approach helps avoid significant losses if the platform turns out to be fraudulent or if your crypto wallet doesn't function properly on it.

Handling network overloads

Sometimes, transfers may get stuck due to network overload. Transaction delays can last several hours, during which your funds will be frozen by the platform. While this isn't inherently bad, you might lose money if the exchange rate drops.

Cautionary tales

In early September, an anonymous user mistakenly sent $1 million in USDT stablecoins to a smart contract address instead of a crypto wallet. This error, due to the sender's inattention, rendered the funds irretrievably lost. However, the user was incredibly lucky as Tether's CTO, Paolo Ardoino, helped recover the money. After this incident, Ardoino urged users to exercise greater caution when conducting transactions and always double-check everything.

Such stories highlight the need for meticulous verification of all transaction details and the use of reliable information protection methods. Since you now know how to transfer cryptocurrency to another person, be sure not to neglect safety rules. With cryptocurrencies, it's crucial to double-check wallet addresses and transaction conditions to protect yourself from significant and minor losses.