Guide to Transferring Bitcoin from Binance to a OneKey Hardware Wallet

Enhance Security with a Hardware Wallet

You've chosen the best path for Self-Custody! Moving digital assets from an Exchange (InnovestX) to a Hardware Wallet means shifting from "online" storage to "offline" storage (Cold Storage), which is the highest security standard in the crypto world.

This guide will walk you through each step in detail to ensure your coin transfer is accurate and secure.

Part 1: Preparing Your Hardware Wallet (OneKey)

Before transferring Bitcoin from the exchange to a Hardware Wallet using the Binance app, we need to create a "Receive Address" with OneKey first. (If you have other Hardware Wallet models, feel free to use them, but in this guide, I will use OneKey as an example for receiving coins.)

1. Prepare OneKey and Create an Address

Open the OneKey App. Connect your OneKey device, which has a Seed Phrase created, to a computer or another device such as a smartphone or tablet. Then, open the OneKey App program on the desired device.

2. Click "Receive"

• Select the coin account to receive (Bitcoin)
• Click the "Receive" button to generate a receiving address.
• Select the coin you want to receive, choose "BTC".

3. Confirm on Device (Very Important)

The OneKey App will display the Address. You must confirm that the address on your computer screen matches the address on your OneKey device screen 100%.

This is to prevent malware that might change the Address on your computer screen without you knowing it.

4. Copy Address

Copy the address you have confirmed from the OneKey App. This completes the preparation of the "Receive Address" for Bitcoin.

Part 2: Starting Transfer from Binance (General Steps)

Choosing Bitcoin Network

1. Select Bitcoin Network (BTC)

If you want to store Bitcoin, you must use only the Bitcoin Network (BTC). This is because Bitcoin on other networks is not true Bitcoin but Wrapped Bitcoin (WBTC). Therefore, if you want to store actual Bitcoin, you must select the Bitcoin Network.

2. Select Other Networks

Bitcoin on other networks is not Bitcoin but Wrapped Bitcoin (WBTC). The question is, what is a Wrapped Bitcoin (WBTC) Token?

The principle of WBTC is to collateralize real Bitcoin and then create WBTC in an equivalent amount (though not exactly equal). This is similar to creating stablecoins like USDT, USDC, where fiat currency is collateralized to create an equivalent amount of coins.

So, is a WBTC Token Bitcoin?

The answer is no, it is not true Bitcoin. To make it easier to understand, a WBTC Token is like a gold certificate. When we buy gold, do we want real gold or a gold certificate? In the past, gold certificates were useful because they granted ownership and facilitated easy transfer.

Therefore, we need to reconsider our purpose for buying Bitcoin. If we want to use it as collateral for other assets or for short-term speculation, then buying WBTC Token is fine. But if we want to hold true Bitcoin, then we should buy Bitcoin on the Bitcoin Network.

Common formats

• BEP20 (BSC): BTCB
• ERC20 (Ethereum): WBTC
• Solana: BTC (Wrapped)

3. Select Lightning Network (LN)

What is the Lightning Network?

The Lightning Network (LN) is a Layer 2 network built on top of the Bitcoin Blockchain (Layer 1), which operates on a separate layer (Off-chain) from Layer 1.

The Lightning Network was designed to address the problem of slow transaction processing on the Bitcoin Blockchain (Scalability Problem) for massive transactions. It helps make BTC transfers faster and reduces fees, and is becoming increasingly popular with more exchanges supporting it.

When the Lightning Network processes off-chain transactions, it uses what are called Payment Channels. Once a payment channel is established, two counterparties can exchange coins by creating a channel and signing transactions that adjust the channel's balance. This requires both parties to sign and confirm all transactions within the channel.

Read more here

Starting Transfer from Binance

Access "Withdrawal" Page on Binance

• Open the Binance app.
• Go to the “Assets” menu at the bottom right to view your digital assets.
• Select “Send” to send Bitcoin.
• Select “On-Chain Withdraw” to send Bitcoin using the Bitcoin Network.
• Select the coin you wish to transfer, “BTC”.

Filling in BTC Transfer Information on Binance

• Address: Paste the BTC address copied and confirmed from OneKey (double-check the first 5 and last 5 characters for accuracy).
• Network: Select Bitcoin Network or BTC.
• Amount: Enter the amount of BTC you wish to transfer or withdraw.
• Review the fees and the amount of coins you will receive, then click "Withdraw".

Verifying BTC Transfer Information on Binance

• Check the “Destination Address” again (very important!). If it's correct, you can click “Confirm”.
• Click “Another Verification Method” to verify your identity using your set-up system. For the easiest and quickest option, choose “Touch ID/Face ID”. 
• Alternatively, if you choose another type of identity verification, select it as configured. 
• Click “Send Code” to request an OTP code via your registered phone number.
• Click “Send Code” to request an OTP code via your registered email.
• Open the Google Authenticator app, enter the code from the Google Authenticator app into the Binance app, and click “Submit”.

Process after Bitcoin Transfer on Binance

• Once confirmed, the system will show "Withdrawal Processing", meaning the transaction is being processed.
• Wait for the system to transfer the coins (approximately 10-30 minutes), then check the transaction status in the "View History" menu. 
• If the status shows "Completed", it means the withdrawal has been approved from the Exchange, but the coins may not yet be transferred to your Address and may take approximately 10-15 minutes.
• Check the transaction status at the "Destination Address" on your OneKey (Hardware Wallet) app to see if you have received the coins.
• On Binance, the transaction will be in "Processing" status and will be complete when it shows "Completed" after approval from Binance.

Part 3: Checking Transactions on OneKey App

In the OneKey App, once the transaction is confirmed, you will see the transferred coin balance appear (this may take approximately 10-30 minutes, depending on the exchange and time).