How to Transfer Bitcoin, Ethereum, and Other Crypto to Self Service

Self care bitcoinAnd the EthereumAnd other cryptocurrency assets are flying around a lot More attention Since Sam Bankman-Fried’s FTX exchange unexpectedly burst Two weeks ago in a whirlwind of drama.

Users of the third largest exchange previously do not know if they will get their money back. With this in mind, many users decide not to trust centralized exchanges such as FTX or currency base by their means.

“Leaving your funds on the exchange puts you at risk of hacks, frozen withdrawals due to business failures and insider fraud,” said Nick Neumann, CEO of self-care platform Casa and co-founder. DecryptHe points to FTX as a “powerful example” of this.

With Self Care, users transfer their funds into their own funds governor only those they control.

There are similarities between private keys and car keys. When you give the only key to someone else, they can access your car and drive away. If you keep your key, you are free to do whatever you want, says Ledger CEO Pascal Gauthier.

If total control of your cryptocurrencies sounds attractive to you, follow these steps to move your funds from an exchange to a wallet you own.

Create a portfolio on the self-care platform

A necessary caveat before we begin is that while self-care helps users protect themselves from third parties stealing their money, it also requires greater personal responsibility.

Users must write one Seed phrase, roughly equal to the password that can be used to backup all addresses associated with the wallet. if seed The phrase is lost, and bitcoin Or the cryptocurrency associated with it is lost forever.

If you’re willing to take on that responsibility, there are plenty of options for using wallets to store your money.

We’ll take a look at the popular Electrum desktop wallet.

Once you have downloaded the E-wallet programAfter the initial installation, you will be prompted to create a “seed Phrase.” This is the important “password” we mentioned. Write down 12 words. This is the most important step, because if you lose those words, there is no help desk to turn to to get your money back. It is important to keep these safe and Offline. (In other words, don’t store these words in a file on your computer or phone.)

There are many other wallets to choose from, but no matter which one you choose, the flow is much the same: download the wallet (on your computer or mobile), then write down important words that should never be lost or shared. (Important: If you an act Sharing this seed phrase, the recipient of the phrase will have full access to the associated wallet contents.)

Other cryptocurrencies require other wallets. metamaskFor example, a popular browser and mobile wallet that uses it Ethereum And other compatible icons. Phantom is the most used wallet for Solana and Solana-based assets. And there are many examples.

Another option with more security is to use a file hardware walletFor example, Ledger or ColdCard, which store keys in an offline environment and protect them from possible hacks.

Transfer money from the stock market

Once you have chosen your wallet provider, now is the time to transfer your funds from the exchange to your new walletA wallet that you (and only you) control.

First, you need to create a new address in your wallet that you can send your Bitcoin (or any other cryptocurrency) to. In Electrum, you can click the “Receive” button to generate a Bitcoin “address”, which is a chaotic string of numbers and letters, much like an email address. In MetaMask, Phantom, and other similar browser-based wallets, the address is already generated, and you must click “Calculate,” “Deposit,” or a similar button to copy that address to your computer’s clipboard.

On your chosen exchange say Coinbase for example, there will be some kind of “withdraw” button on your account page for each of your assets. To send money to your wallet, you need to click the “Withdraw” button for the corresponding assets (“Bitcoin” for a Bitcoin wallet, “Ethereum” for an Ethereum wallet, etc.), paste the address from the self-care wallet you created and click “Submit”.

Often the exchange will ask you to make sure you copied the correct wallet address, or to confirm that you really want to withdraw your money, however The mechanics will be slightly different depending on the gear you’re using.

Self-grooming rabbit hole

You have now sent your cryptocurrency from an exchange to your own wallet – so what? “Do your own research” (DYOR) is a mantra in the Bitcoin field because there is a lot of information that needs to be done to be as informed as possible about the cryptocurrency. Self-care can be considered its own rabbit hole Well worth exploring.

There are more complex self-care options beyond what we described above.

For example, “multi-sig” portfolio options, such as the Casa, offer more flexibility. Instead of just one private key, the wallet is secured with a number of keys simultaneously. This way, if a user loses a key, their funds remain safe. (Even if two keys are lost, fortunately.)

Some users have cut their products seed wording in metal sheets For more peace of mind. about where it is located seed The stored phrase is burning, for example seed The phrase must remain clear.

And as Newman points out, the self-care user experience is getting better all the time. Casa’s user experience, for example, doesn’t require writing down or remembering seed Phrase. “Anyone can do it. We think we can continue to improve it in a way that allows anyone in the world to keep their private keys securely,” Newman said.

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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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