Transaction Safety: Addresses, Networks, Confirmations, and Test Transfers

What “Transaction Safety” Really Means

Most lost-funds incidents during transfers come from preventable input errors: sending to the wrong address, choosing the wrong network, omitting a required memo/tag, or assuming “pending” means “failed.” Transaction safety is the habit of verifying three things before you press send: the recipient identifier (address + memo/tag if required), the network/chain used for the transfer, and the transaction status (confirmations and finality).

Addresses: Formats, Checks, and Common Pitfalls

Address formats you’ll commonly see

Addresses are not interchangeable across networks. Even if two addresses look similar, they may belong to different chains.

• Bitcoin (BTC): often starts with 1 (legacy), 3 (P2SH), or bc1 (bech32). Example pattern: bc1q...
• Ethereum-style (EVM) addresses: start with 0x and are used on Ethereum and many other EVM networks (e.g., Arbitrum, Optimism, Base, BNB Chain). Same format does not mean same network.
• Solana: long base58 strings (no 0x), often 32–44 characters.
• Tron (TRX): often starts with T.
• Cosmos ecosystem: bech32 prefixes vary by chain (e.g., cosmos1..., osmo1...).

Minimum checks before sending

• Match the asset to the address type: sending BTC to an EVM 0x address is a red flag.
• Check the first and last 4–6 characters after pasting: compare what you pasted with what you intended to paste.
• Watch for “new address” prompts: if your wallet/exchange shows “new recipient” or “unrecognized address,” slow down and re-verify.
• Beware of look-alike characters: some fonts make O/0 or l/1 hard to distinguish. Copy/paste is safer than manual typing, but only if you verify the paste.

QR code scanning: safer, but still verify

QR scanning reduces typing mistakes, especially on mobile. However, always verify the scanned result:

• After scanning, compare the first/last characters of the address with the recipient’s address shown on the receiving side.
• If the QR encodes extra fields (amount, memo, network), confirm they match your intent before approving.

Copy/paste safely: clipboard malware awareness

Clipboard malware can replace a copied address with an attacker’s address. You can reduce risk with simple habits:

• Paste, then verify: compare the pasted address to the original source (first/last characters at minimum).
• Re-copy from the source if anything looks off; don’t “fix” an address manually.
• Use address books/whitelists when available, but only after you’ve verified the saved address once via a test transfer.
• Avoid copying addresses from untrusted apps or websites; prefer the official wallet/exchange interface.
• On desktop, consider pausing and checking that your clipboard content hasn’t changed between copy and paste (copy → paste immediately, don’t multitask).

Networks/Chains: The #1 Source of Preventable Loss

When you “send crypto,” you’re choosing a network (chain/rail) that must match what the recipient can receive. Many assets exist on multiple networks (native and wrapped versions). Selecting the wrong network can cause:

Continue in our app.

You can listen to the audiobook with the screen off, receive a free certificate for this course, and also have access to 5,000 other free online courses.

Or continue reading below...

Download the app

• Permanent loss (recipient cannot access the funds on that network).
• Delayed recovery (possible only with specialized support, extra fees, or technical steps).
• Stuck/failed transactions (especially if fees are too low or the network is congested).

Safety framing: choose the network based on recoverability, not just fees

Cheaper networks can be fine, but “cheap” is not the same as “safe.” A safe network choice is one where:

• The sender can send the asset on that network.
• The recipient explicitly supports receiving that asset on that same network.
• You understand whether a memo/tag is required.
• You can verify the transaction on a block explorer for that network.

Structured comparison: common transfer choices as a safety decision

Practical rule: match three fields, not one

Before sending, confirm:

• Asset (e.g., USDC vs USDT)
• Network (e.g., Ethereum vs Arbitrum vs Solana)
• Recipient identifier (address, plus memo/tag if required)

Confirmations: Why Transfers Look “Pending”

Most networks add transactions to blocks. A transaction is usually considered safer after it has multiple confirmations (additional blocks built on top of the block containing your transaction). Until then, your wallet or exchange may show:

• Pending: broadcasted but not yet included in a block, or included but not enough confirmations for the receiver’s policy.
• Confirming: included in a block; confirmations are accumulating.
• Completed: receiver has credited it (often after a threshold).

Why the receiver may wait for more confirmations

• Security policy: exchanges and some services require more confirmations for higher-value deposits.
• Network conditions: congestion can slow inclusion in blocks.
• Reorg risk: some chains can occasionally reorganize recent blocks; waiting reduces reversal risk.

What to do while it’s pending

Use the transaction ID (TXID/hash) to check status on the correct block explorer for that network. If the TXID exists and shows confirmations increasing, the transfer is progressing even if the receiving platform hasn’t credited it yet.

A Step-by-Step Transfer Protocol (Use This Every Time)

This protocol is designed to prevent the most common irreversible mistakes.

1) Verify the recipient address from the receiving side

• Open the receiving wallet/exchange deposit screen for the exact asset.
• Confirm the network shown there.
• Copy the address (and memo/tag if shown).

2) Confirm the network on the sending side matches

• In the send/withdraw screen, select the same network name as the receiver’s deposit screen.
• If the sender offers multiple networks for the same asset, do not guess. Go back and re-check the receiver’s supported network list.

3) Paste the address safely and verify it

• Paste the address.
• Compare the first and last 4–6 characters with the source address.
• If using a memo/tag, paste it too and verify it the same way.

4) Send a small test transfer

• Choose a small amount that is meaningful enough to confirm receipt but not painful to lose.
• Include the memo/tag if required.
• Submit and save the TXID.

5) Confirm receipt on the receiving side

• Wait for the receiver to show the deposit credited (not just “seen”).
• If the receiver requires confirmations, wait until it reaches their threshold.

6) Send the remainder (same settings)

• Do not change the network.
• Prefer reusing the same verified recipient entry (address book/whitelist) if available.
• Double-check amount and fees, then send.

Optional: a “two-person check” for large transfers

For high-value transfers, have a second person independently verify: asset, network, address, memo/tag, and test transfer receipt before sending the remainder.

Memos/Tags: The Silent Deposit Killer

Some assets require a memo, tag, or message to route deposits to the correct account on custodial platforms. The address may be shared across many users; the memo/tag identifies you.

Common situations where a memo/tag is required

• Deposits to exchanges for certain networks/assets (often account-based systems).
• Transfers to custodial wallets that pool addresses.

Safety rules for memos/tags

• If the deposit screen shows a memo/tag, treat it as required unless it explicitly says optional.
• Copy/paste the memo/tag; don’t type it.
• Never reuse an old memo/tag from a different deposit instruction unless the platform explicitly indicates it’s unchanged and valid.

Troubleshooting: Common Issues and What to Do

Issue: Transaction is pending for a long time

Likely causes: network congestion, low fee, or the sender hasn’t broadcasted properly.

• Check the TXID on the correct explorer. If there is no TXID or it shows “not found,” the transaction may not have been broadcasted.
• If you control the wallet: some networks/wallets allow fee bumping (e.g., replace-by-fee) or acceleration. Use only official wallet features; avoid random “accelerator” sites.
• If an exchange sent it: you typically cannot change the fee; wait and monitor status, then contact support if it exceeds their stated processing time.

Issue: “Insufficient fee” or “Insufficient funds”

Likely causes: you don’t have enough of the network’s fee coin (gas) or the wallet requires extra for fees.

• Ensure you have a small balance of the fee token for that network (e.g., ETH for Ethereum/L2s, TRX for Tron, SOL for Solana).
• Reduce the send amount slightly to leave room for fees.
• If withdrawing from an exchange, the fee is usually deducted automatically, but minimum withdrawal amounts may apply.

Issue: Deposit not credited even though the transaction has confirmations

Likely causes: the platform requires more confirmations, is doing internal processing, or has a temporary deposit delay.

• Confirm you used the correct asset and network.
• Check the platform’s required confirmations and deposit status page (if available).
• Wait through the stated window; if exceeded, contact support with TXID, timestamp, amount, and network.

Issue: Sent on the wrong network

Reality check: recovery depends on whether the receiving side controls the private keys and supports that network.

• If you sent to your own wallet address on the wrong EVM network: you may be able to access funds by switching networks in your wallet and adding the token contract (advanced but often recoverable).
• If you sent to an exchange on an unsupported network: recovery may be impossible or may require a paid manual process, if offered at all.
• Immediately gather details: TXID, network, asset, destination address, and screenshots of the deposit instructions you followed.

Issue: Wrong or missing memo/tag

Likely outcome: funds arrive at the platform but aren’t credited to your account automatically.

• Do not resend repeatedly; it can complicate support.
• Contact the receiving platform’s support with: TXID, amount, address, memo/tag you used (or note that it was missing), and your account identifier.
• Expect delays and possible recovery fees; some platforms can recover, others cannot.

Issue: Exchange withdrawal shows “processing,” “queued,” or “on hold”

Likely causes: internal risk checks, maintenance, compliance review, or network outage.

• Check the exchange’s status/maintenance notices.
• Confirm you completed any required account security steps (e.g., withdrawal whitelist waiting period if enabled).
• If the hold exceeds the stated timeframe, contact support with the withdrawal ID and any on-screen status messages.

When to Contact Support (and What to Provide)

Contact support when you have a confirmed TXID but the deposit isn’t credited after the platform’s stated confirmation/processing window, when you used the wrong memo/tag, or when a withdrawal is stuck in “processing” beyond normal time.

Support checklist (copy/paste template)

Asset: (e.g., USDC) Network: (e.g., Arbitrum) Amount: Destination address: Memo/Tag (if any): TXID/Hash: Date/time sent (with timezone): Sending platform/wallet: Receiving platform/wallet: Screenshots: (deposit instructions + withdrawal/send confirmation)

Providing complete details upfront reduces back-and-forth and speeds up resolution.