Crypto Transactions - How to Stay Safe When Sending and Receiving Cryptos?

  • Payments
  • 22.10.2021 06:12 pm

In the cryptocurrency industry, one of the most important things that traders and crypto-enthusiasts should keep in mind is the safety and security of crypto transactions.

There are numerous ways of transferring cryptocurrencies and all of them come with specific advantages and disadvantages. Even crypto-enthusiasts who have lots of experience in the market can have a hard time deciding how to transfer their cryptos.

Among the most important things that crypto holders should know about when discussing crypto transactions are token networks.

It is not easy to choose the right network for crypto transactions. In the crypto trading market, most of the crypto assets that you can trade are hosted on different blockchains. Some of the most popular ones are:

  • OMNI
  • ERC20
  • TRC20
  • BEP2

But, these are just a few examples. There are numerous others available, and very frequently, a new one is developed and released.

OMNI is one of the best-known, add-on protocols, which lets its users create their own tokens based on the bitcoin blockchain. OMNI's native token is bitcoin, however, it is rarely used due to low transaction speed.

It also comes with higher fees as well. Then there is ERC20, with Ethereum being its native token. This is the most popular environment for digital tokens and is used by millions of people around the world.

On the other hand, there is TRC20, which is best-known for low transaction fees. It is very frequently used to send and receive USDT. The native token of this protocol is TRX. BEP2 is the Binance protocol and the native token of this one is BNB.

The main idea behind these protocols and their creation is to ensure safe, secure, as well as fast token transactions from other blockchains.

Networks and Their Importance

Understanding networks and their importance is vital for crypto traders. Whenever you are withdrawing your digital assets to an external address, it is very important to choose the right network.

This is a very common struggle in the crypto trading market, not choosing the right network can lead to numerous problems for traders. This problem is especially prominent for those who are using exchanges that offer numerous networks and cryptos, as there is a long list where you have to choose your network.

Once you choose which crypto you want to withdraw, the next step is to choose the transaction network. What happens somewhat frequently, especially in the case of beginners, is that they are choosing networks that have lower fees, which might not be the network where you should be withdrawing the digital coin at.

However, as of now, the majority of the exchanges check if the network is chosen correctly to make sure such mistakes are not made.

Crypto & Automated Trading

One of the main reasons why crypto trading has become so popular around the world is that it is very easy to get started in the market. Modern crypto exchanges offer traders the opportunity to start trading in a matter of minutes.

In addition, there are numerous software development companies that have created automated trading robots that help crypto traders make swift and accurate decisions about their positions in a short period of time.

These crypto trading bots are able to analyze the market in a matter of a few minutes, which offers traders the ability to respond to market changes very fast. In addition, finding the best crypto trading bot can help you go on with your day while the bot trades cryptos for you and makes you profits.

The safety and security of the crypto trading robots are another concern that some traders have. The majority of the crypto bots available in the market today use an API key to connect with exchanges. From your exchange account, traders have the ability to limit what the robot can access on their account.

For the maximum safety, traders can temporarily disable the withdrawal option, which can help you feel safer and more confident.

Withdrawing Cryptos - Things to Consider

Once you are done trading and you believe that you have made sufficient profits and it is time for you to withdraw your profits, there are several things that you should keep in mind.

There are several mistakes that beginner traders make frequently, knowing what these mistakes are can help you avoid them. The first, and probably the most frequent mistake that beginners make is choosing the wrong network.

Make sure to double-check that you are using the right network while transferring your cryptos. Also, some beginners send the wrong coins, which is another problem. Because some of the networks have similar addresses, such mistakes can happen frequently.

On the other hand, you should also keep an eye on the transaction fees. In some cases, the commissions are deducted from the transfer amount. When sending the specific amount of cryptos, make sure you also keep in mind the fees, so that the final amount is what it should be.

Crypto trading is one of the fastest-growing markets around the world. Millions of people are trading cryptocurrencies every single day and a lot of transactions are made. Because of this, the safety and security are a concern that many people have.

But, by understanding some basic concepts and always double-checking your transactions, you can stay safe while sending or receiving cryptocurrencies.

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