What Are Crypto Deposits & Crypto Withdrawals and How to Use Them?

What Are Crypto Deposits & Crypto Withdrawals?

Crypto deposits and withdrawals are crypto transactions that allow you to deposit or withdraw crypto to and from your wallet. They are essential operations for traders who don’t want to manage their crypto on just one platform. In this article, we explain exactly what they are and how to perform them safely and easily at Finst.

Key Takeaways

• Crypto deposits are transfers of crypto from an external wallet to your Finst account.
• Crypto withdrawals are transfers of crypto from Finst to an external wallet or exchange.
• You must always use the correct network and wallet address to avoid loss.
• For withdrawals, you must first verify your wallet to perform transactions safely.
• Finst provides a user-friendly, secure, and free system for depositing and withdrawing crypto.

What Are Crypto Deposits?

Crypto deposits are transactions where you send assets from a crypto wallet to your account on a platform. Think of it as “depositing” Bitcoin, Ethereum, or other cryptocurrencies from an external wallet (for example, Ledger or MetaMask) to your Finst account.

Crypto deposits are used by people who want to trade crypto on a platform, or who want to store crypto securely in a managed environment where they can later sell, trade, or stake it flexibly.

How Crypto Deposits Work at Finst

1. Log in to your Finst account and click “Deposit”.
2. Choose which coin you want to deposit.
3. Copy the unique wallet address displayed for that coin.
4. Carefully read the deposit requirements and warnings, then click the copy icon next to your wallet address.
5. Paste the address (and other details if applicable) into the platform or wallet from which you want to send the deposit.

Important: Do not type the address manually to avoid mistakes.

Once the required number of blockchain confirmations has been reached, your deposit will be credited.

Note: Due to the implementation of the new “Travel Rule” regulations, crypto deposits from hosted/custody wallets (for example, from other exchanges) are temporarily unavailable from December 30, 2024, until further notice. Deposits from self-hosted/self-custody wallets (for example, Ledger, MetaMask, etc.) remain available.

How Do I Choose Which Network to Send Crypto On?

When sending crypto, you must always choose a network. This is important because each network (such as Ethereum, Arbitrum, BNB Smart Chain, or Bitcoin) has its own address structure, transaction fees, and speed. Here’s how to select the correct network:

1. Check the network at Finst: On this page, you can find which networks are supported by Finst for each coin. For example:
   • Ethereum (ETH) -> Ethereum
   • Binance Coin (BNB) -> BNB Smart Chain
   • Avalanche (AVAX) -> C-Chain
2. Check the network of the receiving address.
3. Consider cost and speed: Ethereum is reliable but often more expensive. Layer 2 networks such as Arbitrum or Polygon are usually faster and cheaper.

Note: If you send your crypto using the wrong network, the transaction may be lost. Always make sure that both sides use matching networks.

Watch this tutorial to learn how to deposit crypto into your Finst account:

What Are Crypto Withdrawals?

Crypto withdrawals are transactions where you send crypto from your Finst account to an external wallet or another exchange. Crypto withdrawals are essentially the opposite of crypto deposits.

Crypto withdrawals are used by people who prefer to store crypto in self-custody such as their own hardware wallet. They are also used to move crypto to another environment for staking or DeFi.

How Crypto Withdrawals Work at Finst

1. Log in to your Finst account and click “Withdraw”.
2. Choose which coin and how much you want to withdraw.
3. Select the address where you want to send the crypto.
4. Review a summary of the transaction details and applicable withdrawal fees, then click confirm.

Your crypto should arrive within a few minutes to a few hours, depending on the asset and network activity. Please note that once withdrawal requests are confirmed, they cannot be canceled.

Watch this tutorial on how to use crypto withdrawals at Finst:

Verifying Your Wallet at Finst

To ensure your crypto transactions are executed safely, you must verify your external wallet before making a crypto withdrawal. This ensures that you can only send crypto to a wallet you own. We offer several verification methods, such as message signing or uploading screenshots from your external (self-hosted) wallet. Here’s how to verify a crypto wallet at Finst:

1. Log in to your Finst account, go to Account Settings -> Security, and click on Crypto Withdrawals.
2. Enable Crypto Withdrawals.
3. Choose which crypto you want to add a wallet for.
4. Enter the wallet address you want to use and read the requirements carefully.
5. Once your wallet is approved, you can use it for withdrawals.

You can only use approved wallets for crypto withdrawals. This prevents crypto from being accidentally sent to the wrong or unsecured address.

What to Watch Out for with Crypto Deposits and Withdrawals

There are several things to watch out for when sending or receiving crypto to avoid mistakes and losses. We’ve listed the key points for you:

1. Always use the correct address

Make sure you are using the correct wallet address that matches your selected crypto. Using the wrong address can lead to irreversible loss of your crypto. Avoid this by never typing addresses manually, but copying them directly from the platform or wallet.

2. Always use the correct network

Ensure that both sides use the same network, both at Finst and your external wallet. If you send transactions using the wrong network, you will lose your crypto and cannot reverse it.

3. Pay attention to blockchain confirmations

Blockchains require a certain number of confirmations before a transaction is considered complete. For deposits, this means the funds will only appear after the required confirmations have been reached. The number of confirmations needed varies by cryptocurrency.

4. Be aware of network fees

For deposits, you should account for small network fees (gas fees) paid to the blockchain. For withdrawals, the same applies: fees vary based on blockchain activity and transaction size. Finst does not charge any extra platform fees for depositing or withdrawing crypto.

5. Verify your wallet

Before you can withdraw crypto from your Finst account, you must verify your wallet. This confirms that you own the wallet address and ensures your crypto is sent to a secure destination.

6. Security and reliability

Only use trusted external wallets to send or receive crypto. Protect your personal data, private keys, and enable 2FA on your Finst account. Always double-check transaction details before confirming. Here’s how to keep your crypto safe.

Why Customers Use Crypto Deposits and Withdrawals at Finst

Customers choose Finst because the platform offers exactly what they value most:

• Security and compliance: addresses must first be approved, transactions are checked, and Finst complies with current regulations including the Travel Rule.
• Ease of use: the deposit and withdrawal process is clear, quick, and free of unnecessary steps.
• No unnecessary fees: Finst charges no extra fees for depositing or withdrawing crypto.

This combination makes Finst a logical choice for anyone who wants to move crypto seamlessly between their wallet and a trading platform.

Final Thoughts

Crypto deposits and withdrawals at Finst make it easy and secure to move crypto between your wallet and the platform. With mandatory wallet verification, clear network selection, and transparent processes, Finst minimizes risks and costs, enabling users to manage and trade their crypto confidently.

Frequently Asked Questions

How much does a crypto deposit cost at Finst?
A crypto deposit at Finst is completely free.

How much does a crypto withdrawal cost at Finst?
Finst does not charge additional fees for crypto withdrawals, but there may be network fees depending on the blockchain.

How long does it take for my crypto to be deposited into my account?
Your crypto should appear in your account within a few minutes to a few hours, depending on the asset and network activity.

How long does it take for my withdrawal to be processed?
Your withdrawal should be processed within a few minutes to a few hours, depending on the asset and network activity. Once confirmed, withdrawals cannot be canceled.

Which cryptocurrencies can I deposit or withdraw at Finst?
At Finst, you can deposit or withdraw a wide selection of popular cryptocurrencies. Check here which cryptos you can deposit/withdraw and which networks are supported.

Is there a minimum deposit or withdrawal amount?
At Finst, there are no minimum amounts. You can deposit or withdraw any amount without extra fees.