- There are a variety of reasons why a user may want to withdraw tokens from an exchange. Some might desire to “hold their own keys” or purchase lower-cap crypto from another exchange.
- In order to withdraw your tokens from an exchange, you will need a personal cryptocurrency wallet or separate exchange account where tokens can be transferred.
Cryptocurrency exchanges have many benefits. For example, users can onboard fiat into the crypto ecosystem to purchase coins like Bitcoin, Ethereum, or countless others.
An important part of managing one’s crypto tokens is deciding whether to keep crypto on an exchange or wallet. While many users elect to hold their tokens on the exchange where they are purchased, more experienced crypto proponents who value the ethos of “not your keys, not your crypto” choose to withdraw their tokens to a private wallet.
Here is a simple guide to help you navigate the process of learning how to transfer crypto to a wallet or exchange.
The first thing you need to do is get a crypto wallet set up or get a verified account on a cryptocurrency exchange you want to use.
Visiting the website for the cryptocurrency you own is often the safest way to find an appropriate wallet. Different projects often provide links where you can download an officially recognized wallet and offer details on how to transfer crypto.
However, be careful to make sure the project website is legitimate and not a spoof or spin-off. Crypto thieves sometimes set up fake websites impersonating different projects to try and steal funds from unsuspecting users.
If you are looking to transfer crypto to an exchange, you will most likely need to sign up for an account and complete a Know Your Customer check to get verified. Common KYC stipulations include providing official identification documents and proof of address.
In some instances, you may also be asked to prove where funds will be coming from and provide evidence that you can afford to transfer tokens on the exchange.
The idea behind KYC regulations is to ensure a customer’s identity is legitimate, assess a user for potential financial crime, and get a better understanding of a new user’s potential activity. While many might find the KYC process burdensome, verifying identities can help foster customer trust, lead to fewer instances of money laundering and scams, and mitigate legal and regulatory risks for a crypto platform.
Once you have passed the KYC process and your account has been activated, you will be able to access your wallet to buy, sell, and trade various supported cryptocurrencies. If you click on individual crypto, there will usually be a button that says “deposit” that will provide you with a wallet address where you transfer crypto to your hardware wallet.
If you are using a cryptocurrency wallet, the public address is typically listed on the main interface or can be accessed by clicking a button that says something similar to “receive” or “deposit.”
Transferring From the Exchange
You are ready to transfer the funds you originally purchased once you have a wallet address.
So, how does transferring crypto to a wallet work? To begin, go back to the cryptocurrency exchange where your tokens are located and look for a button that says “withdraw.” Once you click on it, you will be taken to a page where you can select which crypto you want to transfer.
Once you select the desired token, several fields should appear asking for the amount you wish to transfer, the network you wish to use, and the address where you would like funds to be sent.
Enter the number of tokens you wish to transfer and in the case of multi-chain tokens, which network you would like the crypto transfer on. Next, go to your crypto wallet or receiving exchange account and copy the deposit address provided.
Input that wallet ID into the “withdraw address” field and double-check to make sure that it is correct. Once all the fields have been filled out, click the withdraw button to initiate the token transfer. Most exchanges will have additional security features in place as an added precaution like Two-Factor authentication, transaction password, and email verification. Be sure to complete each of these as required.
As an extra step, some crypto users initiate a test transaction to ensure all details are correct by withdrawing a small amount of crypto.
Depending on the exchange in question and the network being used when transferring crypto between exchanges, the withdrawal process can take anywhere from a few seconds to a few hours. You will typically receive a confirmation email from the exchange that confirms receipt of the withdrawal request and one notifying you when the withdrawal has been completed.
See the State of a Transaction on Block Explorers
For additional peace of mind, users can look up a particular transaction on a block explorer to see details and confirmation information. Block explorers like Etherescan include transaction data, wallet addresses, smart contract details, and other key details.
Block explorers are self-contained tools and are often managed by experienced developers and professionals who remain dedicated to making blockchain technology more accessible. Other blockchain explorers include Blockchain.com, Blocksypher, and Tokenview.
Once the email is received, check your cryptocurrency wallet or exchange account to verify that the funds have been transferred.
Following the above steps makes it easy to learn how to send crypto to another wallet.