What are the risks of withdrawing crypto?
What are the risks of withdrawing crypto? What are the risks of withdrawing crypto?

What are the risks of withdrawing crypto?

Bitvavo supports crypto withdrawals to external wallets like your personal private wallet or other exchanges. It is a rapid and effortless method to send your assets. The transactions occur on-chain within a decentralized network. It is crucial to exercise caution while transferring crypto. Errors in withdrawal can result in the full loss of your funds.

We have a few important rules that you should check thoroughly before you start your withdrawal

  • Use only personal wallets to which you have personal access. Check your destination address before every withdrawal.

  • Make sure your withdrawal is within the right network.

  • Pay attention to the Memo, Message or Tag field. It is required to exchange wallet addresses.

  • Clarify whether your destination wallet service charges fees for crypto deposits.

  • Don’t use the same wallet for transferring different crypto.

It is crucial to exercise utmost care while performing crypto transactions, as they cannot be reversed. Once you confirm a withdrawal, funds will be transferred to the wallet address you provided. To monitor the transaction's progress, you can track its status, including the number of confirmations, on either the blockchain or your recipient wallet's website. If there are any delays or concerns, kindly reach out to your destination wallet service for assistance.

Although crypto withdrawals open up a lot of opportunities it also involves high risks like being scammed.

When a crypto is withdrawn to other platforms or addresses, ownership of the asset changes to the individual or platform in control of the withdrawal address. Once crypto are withdrawn, Bitvavo is unable to assist in their recovery.

There is a risk of loss when withdrawing to untrusted platforms, such as MLM schemes, gambling websites or participating in ICO crowdfunding is a high-risk investment behaviour. Directly sending crypto to these types of addresses will result in the inability to retrieve your crypto. 

Users are responsible for any loss caused by their own faults, such as decision-making errors or forgetting passwords. Users should fully understand relevant policies and regulations, carefully investigate the credibility of their destination, and consider their own risk tolerance before processing their crypto withdrawal. By acknowledging and understanding these risks, users accept responsibility for any resulting losses.

We could imagine this raises some questions so do a scam check!

The following steps have advised the check before you make your withdrawal to an external service.

  • Use the website scamadvisor.com if you are not falling for an investment scam;
  • Learn more here about Ponzi schemes and multi-level marketing (MLM) and here about Tech support fraud, boiler-room fraud and Forex broker fraud;
  • They do not know everything, so search on the internet for reviews, paste the URL in the search bar and combine it with keywords like scam/review/risk;
  • If you still have doubts please reach out to support@bitvavo.com we are happy to help out and give a risk indication. Please provide us with the following information: URL of the service, Screenshot of the webpage, information on how you got in contact with this service and if you are contacted by someone about this service.

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