BFM CRYPTO offers you a tutorial to see step by step how to transfer your cryptocurrencies from a cryptocurrency exchange platform to a cold wallet.
The collapse of the FTX platform has many users thinking about the importance of owning their own cryptocurrencies (“not your keys, take your coins”). Have you bought cryptocurrencies on a platform and want to keep them safe in a wallet? BFM Crypto has produced a tutorial to teach you how to transfer your cryptocurrencies from an exchange platform (Binance, Coinbase…) to a cold wallet also called “cold wallet” (Ledger, Trezor…).
Recall that a cold wallet allows you to keep a user’s private key off the network (computer, phone). But it also allows for transactions to be made for users (trade on decentralized platforms, sending cryptocurrencies, buying NFTs) when connected to a network and used with brokered software.
Here we will test a transfer of a certain amount of bitcoin cryptocurrency from Binance (the first cryptocurrency exchange) to the cold wallet of the French unicorn Ledger.
With a few manipulations, this process will remain the same between a platform and a cold wallet. What will change above all will be the specific characteristics of platforms and cold wallets (transaction fees, minimum transferable amount, software installation, etc.).
1. Set up your Ledger wallet
Before transferring your cryptocurrencies, you will first need to set up your Ledger wallet while setting up the so-called “Ledger Live” space on your computer.
- Set up your Ledger wallet
You must first download the space called Ledger Live. Make sure your computer has enough capacity to accommodate it.
Then, you will need to set up your Ledger wallet (ideally bought new, for obvious security reasons as BFM Crypto had indicated here). There are several for sale, the first marketed look like USB sticks.
– take the time you need (at least 30 minutes)
– isolate yourself
– follow the step-by-step procedure specified by Ledger to perform the configuration
Among the crucial steps:
– Choose a pin code that will remain confidential and will protect access to your wallet. You will be asked every time you turn on your wallet. Recall that it always remains “off the network” even on.
– Then, the Ledger wallet will generate a recovery phrase, which is a list of 24 words. You will need to write these 24 words in order on paper (or other medium) and keep this list in a safe place, out of sight (don’t take pictures, don’t email each other).
Important: this list saves your private key (your cryptocurrencies) – if you lose it you lose access to your private key.
- Creating “accounts” in your ledger
You will now need to install blockchains and create accounts associated with the cryptocurrencies stored on these blockchains.
Here, two steps:
– “install” the blockchain(s) of your choice
– then “add an account”: here you will have to choose the cryptocurrency you bought (Here we will add the cryptocurrency Bitcoin and its associated account “Bitcoin 1”, an image of which you will find later in the tutorial).
Example: if I want to transfer bitcoins to my Ledger, I will have to “install” the Bitcoin blockchain then “add an account” by choosing the bitcoin cryptocurrency in Ledger Live (each time all the validations are done on your Ledger wallet, and you will be guided every time by Ledger).
You can create as many accounts as you own cryptocurrencies (“Bitcoin” account for bitcoin crypto, “Ethereaum” account for ether, etc.)
Each account will generate a public address to deposit your cryptocurrencies from a platform. In other words, these public addresses will need to be disclosed to Binance in due time.
A public address looks like a series of letters and numbers like this: 2A1xyzeTBFMCrypto65FRD78xddX
2. Transfer from Binance to Ledger
- Prepare the withdrawal process on Binance
If this is your first time making a transfer, it’s best to transfer a small amount first (the minimum is 0.001 bitcoin on Binance) to familiarize yourself with the process, before making larger transfers.
To make the transfer, you will need to open your Ledger Live, fire up your Ledger wallet and open your Binance account.
We will review the Binance website. To make your transfers as secure as possible, it is best to install the double authentication procedure called 2FA on Binance. The installation process has been detailed step by step by the excellent cryptocurrency popularizer Sébastien Leguell qui au Coin du Bloc. 2FA authentication will be performed before each transfer for greater security for the user.
Once logged into your Binance account, go to your “dashboard” and click on the “spot wallet” (deposits and withdrawals). You will see your balance and any cryptocurrencies you have purchased.
For example, if you want to transfer your bitcoins, you will need to click on “withdraw” as indicated below. A new Binance page will open, asking you for three things:
– the public address called “recipient’s address” to which to transfer your cryptocurrencies (this is your public address that you will soon discover)
– the withdrawal network (here it will be Bitcoin for bitcoin cryptocurrency)
– the amount of cryptocurrency you want to transfer (BTC)
Leave this page open without completing it and open your Ledger Live in order to retrieve the public address to which to transfer your cryptocurrencies.
- Get your address from Ledger
First, turn on your Ledger wallet and connect to Ledger Live in parallel. In Ledger Live, go to the “get” tab, select the Ledger account you’ve already created (step 1 of the tutorial), then click continue.
Here we have selected the previously created “Bitcoin 1” account.
A new window will appear allowing you to discover a public address linked to your “Bitcoin 1” account.
Before returning to the Binance page, you will need to follow Ledger’s precise procedure here, with two main steps:
– first you will need to verify that the public address associated with your “Bitcoin 1” account on Ledger Live is identical to the public address on your Ledger wallet
– then, copy this public address by clicking the icon just to the right of the address (the goal is then to “paste” it into Binance’s “recipient address” box)
– then validate the same public address on Ledger Live and your key
- Go back to Binance to withdraw
Now that you’re back on your Binance page, there are only 4 small steps left:
1. Paste the public address in the “address” box (verifying that it is the same as that of your Ledger, a simple copy paste done badly could be hacked and you would find yourself pasting the public address of an attacker).
2. Once the address is registered, Binance should automatically detect the network through which the transfer will be made, in this case the Bitcoin blockchain.
3. Enter the amount you wish to transfer. When transferring cryptocurrencies, you will need to provide the amount in cryptocurrencies.
For example: during bitcoin today, if you want to transfer around 33 euros, you will have to enter in the amount box: 0.002 bitcoin. At this amount, Binance will remove the “network fee” (0.0002 bitcoin fixed on the Bitcoin blockchain, approximately 3.2 euros), so the amount you transfer will be 0.002 bitcoin – 0.0002 bitcoin = 0.0018 bitcoin ( about 30 euros)
4. Press “Withdraw”
5. After the validation of the 2FA procedure on Binance, your transaction will be executed. You will have to wait a few minutes before you see the amount transferred to Ledger.
There you made your first transfer from the Binance exchange to Ledger! This tutorial was made possible with the help of Sébastien Leguell, the co-founder of the media Au Coin du Bloc.