In 2024, Americans faced a staggering loss of $9.3 billion due to crypto-related scams, marking a dramatic 66% rise from the year before. A single incorrect address or unverified transaction can deplete your wallet in an instant. Once a crypto transaction is made, it cannot be undone.
This guide reveals the methods to send crypto securely. Discover how to verify addresses, select secure wallets, and steer clear of common scams. From basic safety inspections to complex security for huge transfers, we cover it all in this article.
Checklist: 8 Things To Do Before You Hit “Send”
Review this checklist prior to each transaction. These steps require less than five minutes to complete, yet they effectively prevent irreversible mistakes.
Ensure that you are utilising the appropriate blockchain network. Transferring ERC-20 tokens to the Binance Smart Chain (BSC) or BEP-20 tokens to the Ethereum network results in funds being placed on the incorrect network. It is essential to ensure that your token standard aligns with the receiving network prior to initiating a transfer.
Safety Check | Why It Matters | Time Required |
Confirm correct chain (ERC-20 vs BEP-20) | Prevents funds being sent to the wrong network | 30 seconds |
Verify recipient address manually | Stops address poisoning attacks | 1 minute |
Test with a small amount first | Confirms the address works before a large transfer | 2-3 minutes |
Check network fees & confirmations | Avoids overpaying or delays | 30 seconds |
Update wallet apps & devices | Patches security vulnerabilities | 2-5 minutes |
Disable clipboard monitoring | Prevents malware from changing addresses | 1 minute |
Use multisig for large amounts | Requires multiple approvals | Varies |
Record transaction ID (TXID) | Provides proof and tracking | 15 seconds |
Make a test transfer of $5 to $20 first. Wait for confirmation before sending the entire amount. Check the current network fees, as Ethereum might rise, whereas BSC normally costs less than $1. Take a screenshot of your transaction ID soon after sending.
Choosing the Right Wallet
Hot wallets remain connected to the internet, allowing for rapid access to funds. Included are mobile applications such as Trust Wallet and exchange wallets like Coinbase. Utilise hot wallets exclusively for the funds required for your imminent transactions.
Cold wallets store private keys on hardware devices such as Ledger or Trezor, ensuring they remain offline. These devices are resistant to online hacking and include recovery seeds consisting of 12 to 24 words. The hardware wallet market is expected to increase from $582.98 million in 2025 to $2.06 billion by 2030.
Continue to allocate funds in hot wallets for spending purposes while securing long-term assets in cold storage. It is advisable to connect your hardware wallets solely during the transaction process. It is essential to check the address displayed on the device’s physical screen prior to confirmation.
Address Safety & Advanced Attacks to Watch For
Address poisoning has resulted in losses totaling nearly $68 million, stemming from approximately 270 million attacks (totalling over 2 years) that took place on May 3, 2024. Scammers often send small amounts from fraudulent addresses that closely resemble those you have previously used. When copying from transaction history, it is possible to inadvertently select the incorrect address instead.
Phishing attacks involve the use of counterfeit wallet applications and imitation websites. It is advisable to download applications exclusively from official app stores or the websites of manufacturers. In 2024, Ledger users encountered fraudulent support campaigns in which scammers successfully obtained recovery phrases.
Clipboard malware alters the addresses you copy, substituting them with those of the attacker. Utilise QR codes as an alternative to copy-pasting whenever feasible. Avoid making large transfers while connected to public WiFi networks. Utilising a VPN enhances security when connecting to any network.
Additional Steps for Safety
Verify the identity of the recipient using a reliable method, such as making a phone call. Inquire about the specific network and token standard that their wallet is compatible with. Incorrectly handling this situation can result in funds being sent to recipients who are unable to access them.
It is advisable to initiate a test transfer initially. BEP-20 transactions are completed in 3 seconds, whereas ERC-20 transactions take 15 seconds to finalise. Transfer an amount ranging from $5 to $20, taking into account the applicable fees. Please ensure that you receive confirmation from the recipient before moving forward with the complete amount.
Network | Block Time | Confirmations | Typical Fees |
Ethereum (ERC-20) | 15 seconds | 12-15 blocks | $1-$50+ |
BSC (BEP-20) | 3 seconds | 15 blocks | $0.10-$1 |
Bitcoin | 10 minutes | 6 blocks | $1-$20 |
Polygon | 2 seconds | 128 blocks | $0.01-$0.10 |
Verify the address thoroughly, examining each character before finalising your confirmation. Monitor your transactions using block explorers such as Etherscan or BscScan. Transfer the remaining funds to cold storage once the transaction has been finalised.
In the event of an issue, it is important to note that blockchain transactions cannot be reversed. If you have sent something to the wrong address, it is important to contact the recipient without delay. To report scams, visit the FBI’s Internet Crime Complaint Center at ic3.gov. If you’re residing in India, you can report your crime on cybercrime.gov.in. Recovery is often deemed unfeasible.
Tools & Practices That Materially Reduce Risk
It is advisable to purchase hardware wallets exclusively from the official manufacturer websites, avoiding third-party sellers entirely. Devices that have been tampered with and purchased from unauthorised retailers pose a risk of having your funds stolen.
Multisig wallets are recommended for managing shared accounts. Multiple approvals are necessary for each transaction, generally involving either 2-of-3 or 3-of-5 signatures. Gnosis Safe is widely recognised for its compatibility with Ethereum-based chains.
It is important to enable two-factor authentication on all exchanges and wallets. Utilise authenticator apps such as Google Authenticator rather than relying on SMS, as phone numbers are susceptible to hijacking. Evaluate custody services such as Coinbase Custody for managing balances that exceed six figures.
Common Mistakes & How to Avoid Them
One of the most common errors is sending funds to the incorrect network. Funds are sent to an address on a different blockchain, making it impossible for exchanges to assist in their recovery. It is essential to confirm the specific network prior to sending.
Copying and pasting without proper verification can expose you to the risks associated with clipboard malware. In 2024, a mere 0.03% of fraudulent addresses deceived victims. However, the successful attacks resulted in significant financial losses, including a close call of $68 million. Manually verify addresses each time.
It is crucial to keep your recovery phrase confidential and not share it with anyone. Legitimate services will not request this information. It is important to approach guaranteed returns or urgent transfer requests with caution. It is essential to review contract data prior to approving any smart contract interactions, as there is a risk that malicious contracts could deplete your wallet.
When To Use Recoverability Options (And When You Can’t)
Blockchain transactions are irreversible once confirmed. They cannot be canceled, reversed, or modified by anyone. While this ensures the security of blockchains, it also implies that any mistakes made by users are irreversible.
For recovery to be successful, it is essential that both parties utilise the same exchange, such as Coinbase or Binance. The exchange may provide internal support regarding fees and documentation. Operation Level Up prevented an estimated $285 million in losses through early detection in 2024.
It is essential to report scams promptly to your exchange and ic3.gov. Kindly share all transaction IDs along with the corresponding wallet addresses. Although the chances of recovery are minimal, reporting plays a crucial role in enabling authorities to monitor and investigate scam networks. If you have control over both wallets, you can transfer funds back to your own account.
Conclusion
Crypto transfers are simple, but even small errors can lead to permanent loss. Verify the recipient address, choose the right network, and start with a test transaction. Relying on trusted tools and storing large amounts in hardware wallets improves safety. Because transactions can’t be reversed, strong security practices are critical.
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Frequently Asked Questions
Can I Reverse a Crypto Transaction If I Sent it To The Wrong Address?
No, blockchain transactions are irreversible once confirmed. The only exception is if both parties use the same centralised exchange. Always verify addresses and send test amounts first.
What's The Difference Between Hot and Cold Wallets?
Hot wallets stay online for quick access but face higher security risks. Cold wallets store private keys offline on hardware devices for maximum security. Use hot wallets for daily transactions and cold wallets for larger amounts.
How do I Protect Myself From Address Poisoning Attacks?
Verify the entire wallet address character by character before sending. Use hardware wallets that require manual address confirmation. Save trusted addresses in your wallet’s contact list instead of copy-pasting from transaction history.
Why Should I Do a Test Transaction First?
Test transactions confirm the address works correctly on the right network before sending large amounts. They cost a few dollars but can save you from losing thousands.
What's The Difference Between ERC-20 and BEP-20 Tokens?
ERC-20 tokens run on Ethereum’s blockchain while BEP-20 tokens run on Binance Smart Chain. BEP-20 is faster with 3-second block times versus Ethereum’s 15 seconds and offers significantly lower fees.
Are Hardware Wallets Worth The Investment?
Yes, especially if you hold more than a few thousand dollars. Hardware wallets store private keys offline, making them immune to viruses and online hacking attempts.
What Should I Do if I Suspect I've Been Scammed?
Stop all communication and don’t send additional funds. Report to your exchange and file a complaint at ic3.gov. Document all transaction IDs. While recovery is unlikely, reporting helps authorities track scammers.