New to the world of cryptocurrency but overwhelmed by the complicated fund operations? You often hear terms like “deposit”, “withdrawal”, and “fund transfer”, yet when it comes to actual operation, you worry that pressing the wrong button might cost you everything. This beginner-friendly guide to the exchange fund transfer procedure uses detailed illustrations to walk you through the complete process of exchange deposits, internal fund transfers, withdrawals to a bank account, and wallet transfer instructions, helping you manage your digital assets safely and efficiently.
“Deposit” is a common term in the crypto space, referring to transferring fiat currency (such as TWD or USD) or cryptocurrency into your exchange account so you can begin trading. This is the very first step of all operations, and choosing the method that suits you best is extremely important.
For investors in Taiwan, using an exchange that supports TWD is the most intuitive and convenient deposit method. MAX Exchange is one of the mainstream choices in Taiwan, and its process is representative.
If you need to enter the market quickly or if the exchange you use does not support TWD, purchasing crypto with a credit card is a fast option, though the cost is relatively high. Binance, the world’s largest exchange, offers this service.
This is also known as a “crypto-to-crypto deposit”. If you already hold cryptocurrency in another exchange or personal wallet, you can transfer it directly into your new exchange account.
After successfully depositing, you may notice that although the money has arrived in the exchange, you cannot trade immediately. This is because most major exchanges store user funds in different functional accounts, and in this case, you need a “fund transfer”. This is a completely free and instant internal transfer operation.
To manage risk and distinguish different functions, exchanges typically set up the following types of accounts:
Therefore, after depositing TWD, the funds may first arrive in the “funding account”, and you need to manually transfer them to the “spot account” before you can start buying and selling cryptocurrency.
Although each exchange interface may differ slightly, the core logic is very similar:
When you take profit or need to use your funds, “withdrawal” refers to converting the digital assets in the exchange into fiat currency and transferring them to your personal bank account. This is the final step in cryptocurrency investing.
This is the most common withdrawal method and is the reverse of the TWD deposit process:
For users with overseas bank accounts or those needing to withdraw large amounts, some international exchanges (such as Kraken) offer USD wire transfer withdrawals. The advantage of this method is that it can handle larger sums, but the drawbacks are that the process is more cumbersome, slower (may require 3–7 working days), and will incur intermediary bank fees for international wire transfers.
After learning how to move funds to and from exchanges, the next step is mastering “on-chain transfers”, meaning transferring cryptocurrency from one wallet address to another. This may be to send funds to a friend, pay for goods, or move assets into a more secure cold wallet for storage.
This is the most important and also the easiest part to make mistakes in the entire cryptocurrency transfer guide. The same cryptocurrency (for example, USDT stablecoin) can be issued and circulated on different blockchains, and these different blockchains are called “networks”. You must ensure that both the sending side and the receiving side use the same network; otherwise, the asset may be permanently lost.
Golden rule for transfers: Before transferring, always confirm the cryptocurrency, the network type, and the wallet address with the recipient, missing any one of these may cause irreversible loss!
After submitting a transfer, the exchange will generate a transaction ID called “TxID” or “Hash”. This is like the tracking number for your transfer on the blockchain. With this number, you can check the transaction progress on the corresponding network’s “blockchain explorer”.
Simply paste the TxID into the search bar of the appropriate explorer and you will see detailed information about the transaction, including whether it has been confirmed, the sending and receiving addresses, the amount, and more, everything is fully transparent.
A: It depends on the method you use. TWD deposits/withdrawals: During bank business hours, usually completed within 15 minutes to 2 hours; delayed during holidays or system maintenance. Cryptocurrency transfers (crypto-to-crypto deposits): Speed depends on the congestion of the blockchain and the processing speed of the exchange, ranging from 5 minutes to 1 hour. Credit card purchases: Almost instantaneous.
A: This is a very serious operation error. In most cases, if the sending and receiving networks do not match (for example, sending from ERC20 to a TRC20 address), the assets will be permanently lost and cannot be recovered, because the address formats and underlying technologies of different blockchains are not compatible. This is why you must confirm the network multiple times before making a transfer. In rare cases, if you transfer to a large centralized exchange that supports both networks, you may try contacting customer service for assistance, but they often charge high fees and success is not guaranteed.
A: The fee is charged by the sending exchange (the one initiating the withdrawal) and has nothing to do with the receiving exchange. This fee is not earned by the exchange; it is paid to miners or validators on the blockchain as compensation for processing your transaction (also known as Gas Fee). The fee varies significantly depending on the “network type” you select. TRC20 is usually the cheapest, while ERC20 is the most expensive during network congestion.
A: This is usually due to the exchange’s risk control mechanisms. Possible reasons include: 1. You recently changed your password or security settings, and your account is temporarily locked for 24 hours. 2. Your account triggered risk control due to suspected unauthorized operation. 3. The network of the cryptocurrency you are withdrawing is undergoing an upgrade or maintenance. 4. You are a new user who has just made a large fiat deposit. If the waiting time is too long, it is recommended to contact the exchange’s customer service to inquire about the reason.
Mastering deposits, withdrawals, fund transfers, and wallet transfers on an exchange is a fundamental skill for navigating the crypto world smoothly. This article has fully explained the four major operational procedures, from the basics of exchange deposit tutorials to the most crucial wallet transfer instructions. As long as you follow the illustrated guide and develop the habit of double-checking the address and network before every transfer, you can avoid the vast majority of beginner mistakes. We hope this ultimate guide to exchange fund transfer procedures helps you manage your digital assets with greater confidence. Start your first deposit operation now!
