Suppose you’ve been keeping up with the latest in the cryptosphere. In that case, you’ll surely have heard that a few of the world's largest cryptocurrency exchanges & platforms, such as Celsius Network and Binance, recently halted customer withdrawals. Users were left in the dark over what was happening with the cryptocurrency they held on these exchanges, and if all would be lost.
Unfortunately, this isn’t an uncommon occurrence in the crypto world. You see, when you store your assets on an exchange you are giving up ownership of your private keys. Exchanges store the private keys on behalf of their users and instead, you are given access to your cryptocurrency via a username and password to log into their website. What happens if their website disappears? What are they really doing with your funds? Well, sometimes we may never know, other times you may just lose it all!
How can you ensure that you don’t leave your assets to the mercy of a third party such as an exchange? Take custody and move them onto a cold storage hardware wallet. If you’re ready to make the move, we’re talking you through how to transfer your cryptocurrency from an exchange to a hardware wallet below!
HOW TO TRANSFER YOUR CRYPTOCURRENCY TO A HARDWARE WALLET
1. First things first, you need a hardware wallet! Here at Coinstop, we stock only the very best in digital security. To see our full range of cold storage hardware wallets, head here. And if you’d like any assistance choosing a hardware wallet that’s right for you, reach out to us at support@coinstop.com.au
2. Once you have received your hardware wallet, it’s time to set it up! Depending on what device you went with, you’ll be prompted on how to set it up. Plug the device into your computer, and follow the instructions seen on the screen.
3. As part of the installation process, you will be required to set a PIN code. Be sure to use a unique sequence that only you know.
4. Now for the most important part… You’ll also be asked to record your recovery phrase. Of course, you could simply use some paper but that isn’t the most secure option. At Coinstop, we sell recovery phrase storage devices that are virtually indestructible, such as the Billfodl. We recommend you store your recovery phrase on such a device.
Once your hardware wallet is set up, it’s time for the transfer!
5. Every exchange has a different user interface but withdrawals usually are pretty similar. First, you will need to log into your exchange account using your account credentials.
6. Once logged in, navigate to your account’s page, where all of your assets are accessible. You should see an option to ‘withdraw’ or ‘send’ your cryptocurrency. Click here.
7. The next page should present you with a few fields to enter some information. This is where you will paste the receiving address generated from your hardware wallet and enter the amount of the specific cryptocurrency asset that you wish to withdraw. *important note*: make sure you only send BTC to a BTC address, ETH to an ETH address etc.
8. Once all those fields are entered it’s a good idea to triple-check that you’ve entered the correct address and information before hitting send.
9. Depending on your exchange and their security procedures they may require you to confirm this withdrawal via 2FA or email confirmation.
10. Once all the above steps are completed, your exchange will begin processing your withdrawal request. Each exchange will differ in speed but it shouldn’t take more than a few hours at most (usually much quicker!). They should provide you with the status of your transaction and include any transaction hashes so you can monitor the funds.
11. That's it! Now you should have received your assets to your hardware wallet - you are now the TRUE owner of your cryptocurrency in the most secure possible way!
If you need further support moving your cryptocurrency from an exchange to a cold storage hardware wallet, we offer 1:1 consultations in which we can talk you through each step. You can learn more about it here.