Beginner’s guide for deposit and withdrawal on cryptocurrency exchanges

The crypto industry is predicted to grow by 5 folds in the coming 7-8 years. Despite the recent crypto crash, experts and analytics are optimistic about a healthy recovery for the market. Veteran investors are also suggesting to make the most of the current “buy the dip” situation for HODL or position trading in the coming months. Crypto exchange is that platform that shoulders the trading operations on behalf of the trader. Whether you want to buy, withdraw, or trade crypto, you have to sign up with a cryptocurrency exchange. As of July 2022, there are  600+ cryptocurrency exchanges out there to trade, buy, sell or swap and exchange crypto.

If you are looking forward to trade on a cryptocurrency exchange, you will have to learn how to deposit as well as withdraw from the platform. Now, it’s to note here, deposits can be made both with fiat and crypto. However, notall exchanges accept fiat deposits. Again, withdrawals can be made in both crypto and fiat on a cryptocurrency exchange. Read more

Guide for deposit and withdrawal

Here is a step-by-step guide on making deposits as well as withdrawals on a cryptocurrency exchange. Before getting into the details, the names of the sections and tabs on the exchange menu might vary from one cryptocurrency exchange to another. But, the basic process is more or less the same.

Tips for making a deposit

Depositing crypto

This guide is for those who have already registered and created an account with a cryptocurrency exchange. If you haven’t created an account with an exchange yet, check the last half of the article for tips to choose the right cryptocurrency exchange.

  • Sign in to your chosen cryptocurrency exchange and go to your account
  • Go to “trade” section and look for a section called “Funds”
  • Click on it
  • Then, go to “Deposit” section and click on it
  • The cryptocurrency exchange will ask you to select your preferred cryptocurrency that you have planned to deposit
  • After you choose the crypto, the cryptocurrency exchange will display the user’s wallet address. Some exchanges also show wallet tag
  • Now, go to the portal from where you have planned to take the fund to deposit in this cryptocurrency exchange
  • Copy wallet address provided by the cryptocurrency exchange. A smarter option would be to scan QR code. The platform might ask to fill destination tags
  • Check whether all the details entered are correct
  • Now, look for the “Send” tab and click on it
  • It will take some time for block confirmation
  • After it’s confirmed, you will receive your chosen crypto in your cryptocurrency exchange wallet

Depositing fiat

  • Sign in to your chosen cryptocurrency exchange and go to your account
  • Go to “trade” section and look for a section called “Funds”
  • Click on it
  • Now, look for the fiat wallet, say “USD wallet” on the cryptocurrency exchange platform
  • Find the option that says something like, “Deposit USD to wallet”
  • You will need to link your bank account. If fiat is going to be your frequent mode of deposit, it’s better to link up the bank details with the cryptocurrency exchange
  • It will take around 24 hours  to verify your details
  • If it’s approved, the cryptocurrency exchange support team will send a confirmation mail to your registered email id
  • After the bank account details have been linked with the cryptocurrency exchange, type the sum that you have to deposit
  • Click on the section that says “Add Money”

You can also make the deposit through credit card and debit card. But, it must be stressed here that card deposits generally carry high fees.

Tips to withdraw

Withdrawing crypto

  • Sign in to your chosen cryptocurrency exchange and go to your account
  • Go to “trade” section and look for a section called “Funds”
  • Click on it
  • Then, go to “Withdraw” section and click on it
  • Choose your preferred crypto that you wish to withdraw
  • Enter the wallet address where you wish to send the money after withdrawal
  • Specify the amount that you have to withdraw
  • Click on “Send”
  • Depending on the terms and conditions of the cryptocurrency exchange, you might have to submit an OTP. Otherwise, you might have to comply with Google 2FA verification process
  • Click on the tab that says “Verify”
  • The exchange will send an email to your email id
  • You will have to confirm your withdrawal request
  • Once the withdrawal has been confirmed, the specified amount will be deducted from your exchange account

Withdrawing fiat

  • Sign in to your chosen cryptocurrency exchange and go to your account
  • Go to “trade” section and look for a section called “Funds”
  • Click on it
  • Then, go to your fiat wallet, say “USD Wallet”
  • Put the sum that you wish to withdraw
  • Click on the tab that says “Verify”
  • After confirmation, you will be asked to enter OTP or fill up for 2FA verification
  • Click on the tab that says “Submit”
  • The fiat money will be credited within 6-7 hours maximum

Final words

We will conclude the article with tips on choosing the right crypto exchange.

Geo restrictions– Before signing up with an exchange, make sure the platform is compatible with users from your country.

Array of coins– You should check the coin roster of an exchange before you sign up with it.

Security measures– You have to check a lot of things when it comes to checking the security part of a crypto exchange. First, your chosen exchange must be able to boast highly advanced security measures like multi-factor or 2FA authentication. Then, check how much of the fund they store in a cold wallet. The best ones in the market assure cold wallet storage for maximum share of funds. Besides, it would be great if your chosen cryptocurrency exchange offers insurance for the stored funds as well.

Fees– Every exchange charges fees for withdrawal, transaction, and exchange. But look for one that can assure a reasonably competitive fee.

User-friendly– The exchange dashboard must be easy to use. Leading exchanges generally have separate platforms for beginners and veterans.

Make sure to study at least 6-7 crypto exchanges before you zero in on a platform.