From everything we have learned and heard, crypto exchanges are safe for trading, but they are not the safest places to store your crypto long-term. That's a fact!
If you want to ensure the security of your digital assets, transferring them to a wallet is the way to go, especially if you hold them long-term.
In this guide, we will show you the process of taking custody of your keys with two examples:
➡️ From Binance exchange to Ledger
➡️ From Crypto.com to Trezor
Before Transferring Cryptocurrency from Exchange
Even though hardware cryptocurrency wallets provide a safer option, you must be cautious. Self-custody means taking complete control of your digital currencies without relying on a third party and risking lost funds due to hacker attacks, bankruptcy, or technical errors.
But taking control of your private keys also means taking bigger responsibility for adequately storing them and ensuring access to your funds. Suddenly, you become your own bank, and failure to secure them could also lead to the permanent loss or theft of your assets.
You don't need to get scared; this is not a complicated process; as long as you follow the steps and are cautious of what you are doing and storing your keys safely, you can ensure your funds are safe.
Also, when transferring your funds to a self-custody wallet, transaction fees can apply, whether from the exchange or by the blockchain itself.
Now let's jump into our use cases!
How to transfer crypto from Binance exchange to Ledger
Step 1: Choose Your Cryptocurrency
The first step is to decide which cryptocurrency you want to transfer. Due to low transaction fees, for this guide, we'll be using Algorand (ALGO).
Step 2: Install the latest version of the Ledger Live App
You can log in to your Ledger Live application on your computer and check if any updates are available. If so, you should update it to the latest software version.
After that, if you don't have a Algorand account on the Ledger Live app, click on Accounts and add a new ALGO account. The next step is to connect your Ledger Nano X; after confirmation, the Ledger Manager will install the ALGO account on your Ledger physical device.
Step 3: Generate a Receiving Address on Your Ledger device
You need to generate a receiving address on your Ledger wallet. To do this, open the Ledger app, select your Algorand account, and click "Receive." Your Ledger wallet will then generate a unique receiving address. You will see the receiving address on the app and the Ledger Wallet; make sure it matches before confirming the wallet address.
Select the network and ensure you send your assets through the correct network.
Step 4: Withdraw Cryptocurrency from Exchange to Your Ledger Wallet
Now it's time to withdraw your cryptocurrency from the exchange to your Ledger wallet. Log in to your Binance account, select Algorand, and click on withdraw button. Paste the receiving address you generated in Step 3. Choose the correct network and confirm the transaction details and wait for the cryptocurrency to appear in your Ledger wallet.
Step 5: Verify the Transaction on Your Ledger Wallet
Once the cryptocurrency has been transferred to your Ledger wallet, you should verify the transaction to ensure everything went smoothly.
Open the Ledger Live app, select your cryptocurrency, and click "Transactions." You should see the transaction you just made.
How to make crypto transactions from Crypto.com to Trezor
Step 1: Connect your Trezor to your computer and open Trezor Suite.
Trezor Suite is a software application that allows you to interact with your Trezor wallet.
Once you've connected your Trezor to your computer and opened Trezor Suite, you'll be prompted to enter your PIN. This crucial security feature ensures that only you can access your funds.
Step 2: Select the receiving account
In Trezor Suite, please select the account where you want to receive the crypto, click Receive, and copy the entire address after confirming that it is the same on your physical device.
This step is critical because it ensures you send your funds to the correct address. It's important to verify that the address on Trezor Suite matches the address on your Trezor device.
Step 3: Log in to your Crypto.com account
After logging in, go to "Accounts" to open your Crypto Wallet. Once you've confirmed the address, you must log in to your Crypto.com account to initiate the transfer.
Step 4: Select the External Wallet to transfer your assets and add the address
Press the "Transfer" button and select "Withdrawal," then choose "External Wallet" as the destination.
This step initiates the transfer process, and you'll need to select "External Wallet" as the destination since you're transferring your funds to an external wallet.
Make sure to select the correct network.
Paste the address from Trezor Suite into the "Destination Address" field. Be sure to double-check that the address is correct before proceeding.
Step 5: Enter the amount you want to withdraw and follow any necessary security steps.
Depending on your security settings, this step includes 2FA, SMS, and email verification.
Step 6: Press "Withdraw" and wait for the transaction to process.
Once you've completed all the necessary steps, press "Withdraw" and wait for the transaction to process. This could take a few minutes to several hours, depending on the network congestion and other factors.
Congratulations! 🎉 You successfully transferred your assets to a hardware wallet
As you can see, the process is quite similar in both cases. What is most important is that you take your time and not trying to finish the process in a rush, which would increase the possibility of any unwanted mistakes.
Double-check the address so that it matches the app and device and that you are transferring to the same one.
💡 If you are transferring funds for the first time, we would advise you to try first with a smaller amount. With that, you can test the process first and ensure that everything goes smoothly before shipping over more significant amounts of cryptos.
Almost all exchanges and wallets have good step-by-step in-app guidance that will help you to finish the process without any issues.
Using cold storage, like Ledger or Trezor, you take an extra step to ensure your digital assets are stored safely. Always prioritize security regarding your cryptocurrency holdings and keep your recovery phrases in a safe offline place.
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