Yes, you can transfer crypto between different wallets. If you would not be able to do so you couldn’t use crypto as a way to transact. But maybe you just dipped your toes in the crypto industry and want to know the how and whys of it all.
So in this blog, we go over all the details of transferring crypto between your wallets or to other wallets. See how you can create a crypto account/address, the fees that you pay when transacting in crypto, and much more.
Because using crypto and sending it from one wallet to another may look difficult at first but is actually really easy. And the start of your journey into the world of blockchain technology and all its possibilities.
How to create a crypto account?
Well, technical speaking this would be a bit difficult. But we won’t go into that. The simplest way to just create a crypto account on whatever blockchain is by letting a custodial or wallet do it for you. Which is basically always.
When you download a new crypto wallet and start it up. The wallet will automatically generate a random address for you that you can use for your transactions. These addresses get generated with an algorithm and are always random and unique. You do have to make a backup of that wallet by saving a 12-word phrase or the whole private key somewhere safe. Because of how these work as the access code to your wallet. In case you lose yours.
If you decide to not store your crypto within your own responsibility but decide to do so with a back or exchange platform. They will then generate an address for you. This address will function as a deposit address for your account with them. And is ultimately controlled by them and not you. However a bank or exchange does fall within the regulations of the country they are based in, so you always have some sort of claim on what they hold for you.
From custodial wallet to non-custodial wallet
When you buy Bitcoin, Ethereum, or any other cryptocurrency for the first time. You will probably buy it with a custodial like Binance or Nexo. When you buy with a company like this you could receive a nice interest on your crypto. But it does come at the cost of your own privacy and financial control.
Most of us however start with a custodial because it is easier and more user-friendly. Non the less you can not use any Bitcoin DeFi or take full control of your finances when you hold your crypto on an exchange.
If you do want to take full control over your cryptos you will have to take them off the exchange and send it to your own non-custodial wallet. With a non-custodial wallet, you can make use of DEXes (Decentralized Exchanges) and no one but you will have access to your funds. Which will finally give you full control of your finances.
Sending crypto from the exchange to your wallet
Now to send your funds really to your wallet. You will have to go to the wallet section of your exchange and click on withdrawal. Now you will be given the option to put in your address. And then choose withdrawal (after passing the security checks).
When you withdraw from an exchange, do make sure that you send the funds to the right blockchain. And not try to send Bitcoin to Metamask as this could result in a loss of funds. So make sure you send it to an address that works with that blockchain. Or an EVM coin to an EVM address that you control. You can learn more about EVM blockchains and wallets here.
What is my crypto wallet address?
If you already have a crypto wallet and want to receive some coins you of course need to figure out what your crypto wallet address is. You can find this in most wallets either at the top of your account page or when you click the “receive” button.
This should show you the public address. Which works in a similar way as your email address. So you can simply share it with anyone and they can send your coin or tokens to that address.
Once you have received some coins/tokens you can also send them to others by clicking send and then choosing the amount you want to send and the address of the person you are sending it to.
What crypto can you send to a crypto address?
Just like letters need an address in the right country to arrive at the right location. A blockchain transaction needs the right address to arrive at the right address. However, you can not just simply send a transaction from the Bitcoin blockchain to the Avalanche blockchain. And vice versa. Blockchain transactions can really only travel on their own blockchain. Meaning that you can only send BTC to a Bitcoin address and ETH to an Ethereum address.
However, this goes for basic transactions. If you really want to send a transaction between different blockchains that is possible. For this, you will just need a blockchain bridge.
A bridge functions as a protocol between blockchains, that locks coins on one blockchain and releases a representation coin on another blockchain. This way you can sort of sending your coins from one blockchain to another. And still, use them in the ecosystem of the blockchain you are sending it to.
Transferring your crypto address to another wallet
If you do not like your current wallet anymore and want to transfer your funds from your old wallet to your new wallet. You do not necessarily have to do so by sending a transaction from the old to the new wallet. You could also just take the private key or secret 12-word phrase and import it into another wallet. This can save you some money on transaction costs and the little bit of dust (amount too small to send) that stays in your old account.
You can usually find this info in your current wallet under your account, which is usually protected by a password of some sort. Or you could use the backup that you made when you created that wallet in the first place.
Now that you have imported your crypto address to a new wallet, you can decide to keep the old wallet or deled it. If you do not plan on using it ever again. Deleting it might be the best option so no one can access your crypto address through your old wallet. But keep a backup somewhere save just in case you lose access to both.
Can I transfer BTC to an Ethereum address?
As we mentioned before, you can only send one blockchains currency to an address on that blockchain. So no, you can not send BTC to an Ethereum address. But you could bridge BTC to Ethereum.
If you do bridge your BTC to Ethereum you could start using it in Ethereum’s DeFi applications and start growing your BTC in your own wallet. To bridge BTC to any other blockchain you could use Ren, which functions as a decentralized bridge between the Bitcoin blockchain and other blockchains. But you could also do so by trading your BTC for WBTC or BTCB which are coins pegged 1 to 1 with BTC that is held by a custodial. And thus give you a centralized approach to using BTC on other blockchains.
Just like with any other payment system or payment, you make in general, you will have to pay a fee. This fee that you will have to pay when making crypto transactions goes to the parties that together secure and compute the transactions on that blockchain.
These fees differ completely per blockchain and are also one of the reasons why some blockchains even exist. In the past debates about Bitcoins transaction fees, which usually exceed at least 1 dollar, caused the creation of many other different blockchains using the Bitcoin name. However, on the Bitcoin mainchain transacting is not the cheapest. Its sidechains like the lightning network make it cheaper than 1 thousandth of a cent to send a transaction and sometimes even completely free.
The prices for these transaction fees differ so much that we can mention them all in this one article. But they range from DeFi transactions on Ethereum that cost multiple 100ths of dollars in fees. To 1 hundred of a cent on blockchains like Polygon.
Crypto wallet fees
Next to normal blockchain fees. You could also be exposed to crypto wallet fees. However, this does not always happen as most wallets do not charge fees over normal transactions. With wallets like SimpleHold and Ballet that don’t charge any extra fees on making transactions with their wallet product.
The only times that you will encounter fees on withdrawing from wallets will be with custodial wallets and exchanges. These providers offer service and need to charge a fee as it is part of their revenue model. Exchanges like Binance, Coinbase, Kucoin, and many more often charge you a fee for withdrawing.
But also normal mobile and desktop wallets sometimes charge you a small fee. Especially with lightning wallets as they charge a small fee for sending transactions. But in return do give you a nice interface and liquidity on the Bitcoin lighting network. On wallet that we have reviewed and provided great service for gaming and Bitcoin is the Zedebee wallet. Which you can check out here.
We hope this blog thought you something about transferring crypto and how you can get started with using crypto for yourself. If you are still stuck with any questions after reading this blog you can click the links in between the text that will guide you to blogs with a deeper explanation of some topics. And else you can always contact us on our socials so we can write another great blog for you next time.