Users who are new to the world of blockchain and cryptocurrencies are often caught up by new and sometimes confusing jargon such as deposits, withdrawals, etc.
Trading on a cryptocurrency exchange is not much different from trading on a stock brokerage platform such as Charles Schwab or Fidelity.
But in the world of blockchain, cryptocurrency exchanges also offer inter-platform transfers on blockchains such as Ethereum or Solana. We call these transfers, cryptocurrency deposits and withdrawals.
In short,
- Trading = converting cryptocurrencies ON the exchange, through trading pairs such as BTC/USD or BTC/USDT, or through direct swapping features like BTSE’s Convert feature.
- Crypto deposits = transferring in cryptocurrencies from another platform onto your BTSE wallet, i.e. moving Bitcoin from Coinbase directly to your Bitcoin wallet on BTSE
- Crypto withdrawals = transferring out cryptocurrencies to another platform or wallet such as MetaMask
Bitcoin trading interface on BTSE
Bitcoin deposit page on BTSE
When transferring cryptocurrencies to and from a platform, you need the recipient’s wallet address or a QR code that contains the wallet address.
After inputting the wallet address and confirming the transaction, it will be processed on whichever blockchain you choose, which can take several minutes, depending on how busy the blockchain is.
You can check the progress of your transfer by entering your transaction id (txid) on public blockchain explorers such as Etherscan (for Ethereum).
Understanding the Convenience of Blockchain Transfers
The convenience of blockchain transactions is unparalleled.
If you don’t like a particular exchange or wallet, or if it’s missing a cryptocurrency or feature you want, you can simply move your funds to another platform within just a couple of minutes.
If you were to try to do this with, say, a Fidelity account or Charles Schwab account, you’d have to first sell your assets, transfer the US dollars to your bank account (which takes several days), and then re-deposit the money onto another brokerage account (which also takes a few days to settle).
Additionally, blockchain transfers make peer-to-peer transfers almost instant.
You can transfer Bitcoin or Ethereum to your friend’s crypto exchange or wallet account within just minutes, not unlike making a transfer on Venmo. You wouldn’t be able to do this with a typical stock brokerage account.
To learn more about making your first crypto trades or deposits, check out our tutorials here.
You can also deposit and trade your first Bitcoin through these BTSE links:
