Finances

How to Safely Transfer Bitcoins From One Wallet to Another

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Written by Quentin Hack

We can freely say that bitcoin is literally the most talked about topic in the last few years. Mining and trading cryptocurrencies are a trend right now, and they will certainly stay that way for a long time to come. I do not know anyone who has not expressed interest in what cryptocurrencies are, how to get them, how to trade with them in the virtual money market, and so on. Because they are our future, and that is why people try to gather as much information as possible about these virtual coins.

The other day I met a good friend of mine with whom, despite all the topics we had a conversation about, in the end, this topic was started. Like many others, he was overly skeptical of cryptocurrencies. His opinion was that it was a huge scam and that we were wasting our precious time and investing in vain in something that in the future would just magically disappear, stop, and someone behind all that deception would reap the fruits of our labor.

However, I tried to prove the opposite, precisely because the interest in cryptocurrency mining is increasing day by day, which is what will cause this activity to continue. It was not clear to him how there could be a market in which cryptocurrencies could be traded. Just as there is a market in which you can buy, sell, or exchange derivatives, money, shares, etc., there is also a market in which virtual money can be exchanged. At this point, some things are already being clarified to him. But in the end, he asked another question, how do people store this virtual money. I say, in the same way as they keep their cash in a wallet. And if they do not want to carry cash, they have a card attached to their transaction account which has the same function as the wallet, where they will keep their money.

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The wallet section has already provoked great interest in him because he wanted to find out if there is a safe way to transfer bitcoins from one wallet to another? I say, of course, that is the best part of using a virtual wallet. And of course, he asked me to explain in detail the process of transferring digital money from one wallet to another.

First of all, you need to decide what type of wallet you need, ie what level of security. There are three types, hosted wallets, non-custodial and hardware wallets. Hosted wallet offers the highest level of security. Just like banks, there is a third party who makes sure your wallet is safe and secure. There is no possibility of losing your coins, even if you forget your password, they will be in a safe place.

The second type is non-custodial. This wallet offers less or even no security. As the saying goes, there is no third party involved, but you take care of your wallet yourself. Perhaps the biggest disadvantage of this type is that if there is a loss of the password to the wallet or the private key as it is called, there is no possibility to return your virtual money. And the security is reduced to a very low level, that anyone can come to your password and own your coins.

The third type, the hardware wallet, would certainly place it in second place out of all three of the above. Because it does not offer who knows how much security, but what it offers is enough to protect yourself. It is a physical device, similar to a USB, on which you can store your private key. So if your computer is stolen or hacked, your data will be safe offline. But the downside is that this device is too expensive and a bit more complicated than the other two options.

You would definitely choose the first one out of these three wallets because of the high level of security. The next step is to choose a platform that is secure and easy to use, where you will set up your account.

To create an account, you need to enclose your personal information. Once the order has been created, you can link it to your bank account in order to be able to buy and sell cryptocurrencies. Even if you already own bitcoin, you can only transfer it to your wallet for safe storage.

There is nothing easier than transferring bitcoin from one wallet to another. However, there is one negative feature, and that is the commissions. But this information should not surprise us, because just like with banks when money is transferred from one transaction account to another there is a commission that should be paid to the bank that makes that transfer.

When you log in to the account in the order options section you have an item to choose whether you want to receive or send bitcoin, you choose the option to send. The next thing you need to do is enter the recipient’s address. This address can be in the form of a QR code or there is an option to copy and paste. After entering the address you need to choose the amount you want to transfer. Keep in mind that the transaction will be subject to a fee that will be charged to you. Next, you proceed to the verification step, where you are sent a code that you enter to complete the transfer.

Experts say bitcoin is one of the most difficult coins to transfer from one wallet to another. And they prefer other coins, such as etherеum. These two cryptocurrencies are so similar and so different at the same time. If you want to find out their similarities and why they are still on top, check out bmmagazine.co.uk.

With a few easy steps, you can have your own wallet with which you can easily, quickly, and safely transfer cryptocurrencies from one wallet to another. As my friend did shortly after we finished our conversation. He also seems to have become a fan of virtual currencies. You can do the same, so start now, do not waste time unnecessarily, because cryptocurrencies are our future.

About the author

Quentin Hack