How to transfer Bitcoin and crypto to the correct network: A beginner's guide

Transferring cryptocurrency out of an Exchange is a fundamental skill every crypto investor should know. However, many may wonder why some coins offer multiple network options and which one to choose. This article will help you transfer crypto with confidence.

 

Getting to know the main networks in the crypto world

Before transferring crypto, let's get to know the main networks, as each network has different strengths and limitations.

🔷 Bitcoin Network

• Used only for transferring Bitcoin. For more information on how to choose the type of Bitcoin address, click here.
• Fees vary depending on network congestion.
• Transaction confirmation time: 10-30 minutes.
• Emphasizes maximum security.

 

🔷 Ethereum Network

• Supports ETH and ERC-20 tokens.
• High Gas Fees during network congestion.
• Transaction confirmation time: 15 seconds - 5 minutes.
• Offers Layer-2 solutions for lower fees.

 

🔷 BNB Smart Chain (BSC)

• Supports BNB and BEP-20 tokens.
• Fees are much lower than Ethereum.
• Transaction confirmation time: 3-5 seconds.
• Suitable for investors who use Binance.

 

🔷 TRON Network

• Supports TRX and TRC-20 tokens.
• Very low fees.
• Popular for transferring USDT between Exchanges.
• Transaction confirmation time: 3 seconds.

 

How to choose the right Network for each coin

Bitcoin (BTC)

Simple, no need to choose a Network as there is only the Bitcoin Network. The only thing to watch out for is the fees during network congestion.

Ethereum (ETH)

There are 2 options:

1. Ethereum Mainnet (Layer-1)

• Ethereum's main network.
• Most secure, but high fees.
• Suitable for high-value transfers.

2. Layer-2 Solutions Layer-2 is like "express lanes" on Ethereum that make transactions faster and cheaper.

Popular Layer-2 examples:

• Optimism: Faster and 3-5 times cheaper than Mainnet.
• Arbitrum: Faster and 5-10 times cheaper than Mainnet.

✅ Advantages of Layer-2:

• Much lower fees.
• Faster transactions.
• Still benefits from Ethereum's security.

⚠️ Disadvantages:

• Must ensure that the destination supports it.
• Must have ETH on Layer-2 to pay fees.
• Withdrawing back to Mainnet can take 1-7 days.

💡 Recommended to use Layer-2:

• When you want to save on fees.
• For transfers of not very high value.
• When you are not in a hurry to withdraw funds back to Mainnet.

 

Other coins to know about

USDT (Tether)

The coin with the most network options:

• TRC-20: Suitable for transfers between Exchanges due to very low fees.
• ERC-20: Secure, but high fees.
• BEP-20: A good option for users within the Binance ecosystem.

 

XRP (Ripple)

• Uses XRP Ledger only.
• Must specify a Destination Tag when transferring to an Exchange.
• Very low fees and fast transaction confirmation.
• Recommended Software Wallets:
• XUMM Wallet (Mobile App)
• Exodus (Desktop/Mobile)
• Trust Wallet (Mobile)

 

Dogecoin (DOGE)

• Uses Dogecoin Network only.
• Fees are not expensive.
• Transaction confirmation takes 1-6 minutes.
• Recommended Software Wallets:
• Dogecoin Core (Desktop, official)
• Trust Wallet (Mobile)
• Exodus (Desktop/Mobile)

 

LUNC (Terra Classic)

• Recommended to use Terra Classic Network.
• Be careful when choosing between Terra Classic and BSC.
• If using BSC, you will receive Wrapped LUNC.
• Recommended Software Wallets:
• Terra Station (Desktop/Mobile, official)
• Trust Wallet (for Wrapped LUNC on BSC)

 

Cardano (ADA)

• Uses Cardano Network.
• Has 2 address types: Byron (old) and Shelley (new).
• Mostly uses Shelley Address.
• Recommended Software Wallets:
• Daedalus (Desktop, official, Full node)
• Yoroi (Light wallet, Desktop/Mobile)
• Exodus (Desktop/Mobile)

 

Important things for beginners to know: Network Fees

Before transferring crypto, you must have the necessary network fees in your wallet, otherwise the transfer cannot be completed.

🔍 Fees for each Network

1. Bitcoin Network

• Fees are paid in BTC.
• Approximately $1-20 per transaction (depending on network congestion).
• You can choose the speed: the more you pay, the faster the transaction.

 

2. Ethereum Network (Layer-1)

• Gas fees are paid in ETH.
• Approximately $5-50 per ETH transfer.
• Token transfers might be more expensive ($10-100).
• Prices fluctuate based on network congestion.

 

3. Layer-2 (Optimism, Arbitrum)

• Must have ETH on Layer-2 to pay fees.
• Approximately $0.3-5 per transfer.
• 5-10 times cheaper than Ethereum Mainnet.

 

4. BNB Smart Chain (BSC)

• Fees are paid in BNB.
• Approximately $0.1-0.5 per transfer.
• Relatively stable, not highly volatile.

 

5. TRON Network

• Fees are paid in TRX.
• Approximately $0.01-0.1 per transfer.
• One of the cheapest networks.

 

⚠️ What beginners need to watch out for

1. Must have the coin for paying fees

• For example, to transfer USDT on Ethereum, you need ETH for Gas.
• If transferring USDT on BSC, you need BNB for fees.
• If transferring USDT on TRON, you need TRX for fees.

 

2. Check fees before transferring

• Some networks have highly volatile fees.
• It's advisable to choose times when fees are not too high.
• You can check fees on fee monitoring websites.

 

3. Plan your transfers

• If you transfer frequently, choose a network with low fees.
• If transferring a high value, you might choose a more secure network even if it's more expensive.
• Keep enough coins to cover transfer fees.

 

💡 Tips for saving on fees

1. Choose times when the network is not congested

• Ethereum fees are often cheaper late at night.
• Fees are usually cheaper on weekends than weekdays.

 

2. Combine multiple transfers into one

• Instead of making gradual transfers, combine them into one.
• This can significantly save on fees.

 

3. Consider using Layer-2 or alternative networks

• Optimism or Arbitrum for Ethereum.
• BSC or TRON for USDT transfers.

✅ Before transferring

1. Verify the recipient address is correct.
2. Check that the chosen network is supported by both sender and recipient.
3. Check the fees.

✅ During transfer

1. Always start by testing with a small amount.
2. Record the Transaction ID.
3. Wait for the transaction to complete before proceeding with further transactions.

✅ After transfer

1. Check the status via a Blockchain Explorer.
2. Confirm that the coins have successfully reached their destination.

 

Increase Security with a Hardware Wallet

In addition to choosing the correct network, another important factor in crypto investment is asset security. A Hardware Wallet is a device that stores your Private Key offline, making it safe from hacking, viruses, and online threats.

Advantages of using a Hardware Wallet:

1. Highest security, as the Private Key is not exposed.
2. Supports multiple networks and cryptocurrencies.
3. Can be recovered if the device is lost.
4. Easy to use with supporting applications.

For those interested in enhancing their investment security, we are an official distributor of Hardware Wallets. You can purchase them here. Rest assured that all products are 100% genuine with warranty and after-sales service.

Conclusion

Secure crypto transfers require considering several factors:

1. Use the Native Network if unsure.
2. Thoroughly check every step.
3. Always test with a small amount first.
4. Record the Transaction every time.
5. Consider using a Hardware Wallet for long-term storage.

With knowledge of networks and the use of secure storage devices, you can invest in crypto confidently, without worrying about risks anymore.