Guide to Transferring Bitcoin from Bitkub to Trezor Hardware Wallet

Enhance Security with a Hardware Wallet

You have chosen the best way to self-custody! Moving digital assets from an Exchange (Bitkub) to a Hardware Wallet (Trezor) is a shift from "online" storage to "offline" (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 (Trezor)

Before entering the Bitkub app, we need to use Trezor to create an "Address (receiving address)" first (If you have other hardware wallet models, you can use them as you wish, but in this article, I will use Trezor as an example for receiving coin transfers).

1.1 Prepare Trezor and Create an Address

2.1 Select Account and Click "Receive": Choose the coin account you wish to receive (Bitcoin) and click the "Receive" button to generate a receiving address. Then click the "Show full address" button to display the receiving address.

2.2 Confirm on device (Very important!): Trezor Suite will display the address. You must verify that the address on your computer screen matches the address on your Trezor device 100%.

Reason: To prevent malware that might change the address on your computer screen without your knowledge.

2.3 Copy Address: Copy the address you've confirmed from Trezor Suite and keep it ready.

This completes the preparation of your "Address (receiving address)" for Bitcoin.

[Additional explanation for beginners]: Normally, each time you click "Receive" on Trezor, the system will always display a new receiving address for you to use. This is the best practice to maintain privacy in crypto transactions. So, don't worry if the address each time is different from the address you used before, because Trezor intentionally creates a new address every time so that no one can know how many coins you have accumulated in this wallet.

Part 2: Initiate Transfer from Bitkub (General Steps)

Choosing a Bitcoin Network

1. Choose 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 real Bitcoin, but rather Wrapped Bitcoin (WBTC). Therefore, if you want to store actual Bitcoin, you must select the Bitcoin Network.

2. Choose Other Networks

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

The principle of WBTC is to back it with real Bitcoin and then create WBTC in an equivalent amount to the collateral (though it might not be exactly equal). This is similar to how stablecoins like USDT and USDC are created, where fiat money is used as collateral to issue coins in equal amounts.

So, is WBTC Token Bitcoin?

The answer is no, it's not real Bitcoin. To put it simply, WBTC Token is like a gold certificate. When we go to buy gold, do we want gold or a gold certificate? In the past, gold certificates were useful because they granted ownership and made it easy to transfer.

Therefore, we need to consider why we are buying Bitcoin. If we are buying it to back other assets or for short-term speculation, then buy WBTC Token. But if we want to hold actual Bitcoin, then buy Bitcoin on the Bitcoin Network.

Common forms:

3. Choose 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) rather than directly on Layer 1.

The Lightning Network was designed to solve the problem of slow transaction processing on the Bitcoin Blockchain (Scalability Problem), making BTC transfers faster and more cost-effective. It is gaining popularity and is supported by more exchanges.

Since the Lightning Network conducts transactions off-chain, this is called a Payment Channel. Once a Channel is established, both parties can exchange coins. By creating a Channel and signing a transaction that adjusts the Lightning channel's balance, both parties must sign all transactions within the channel.

Read more here

Initiate Transfer from Bitkub

Go to the "Withdrawal" page on Bitkub

Entering BTC Transfer Information on Bitkub

Identity Verification before BTC Transfer on Bitkub

Post-Bitcoin Transfer Process on Bitkub

Part 3: Verify success in Trezor Suite (Hardware Wallet)

Initially, on the Trezor Suite page, the incoming transaction amount will appear (in this example, +13,000 sat). However, please note that this transaction shows "Receiving BTC" and "Unconfirmed," which means the transaction is in process and not yet complete. You need to wait for a while until this transaction shows "Received BTC" as shown in the example below.

Once your transaction shows "Received BTC" and "Confirmed," congratulations! Your digital assets are now securely stored in your Hardware Wallet, and only you have control over them.