To spend cryptocurrency, you create a transaction that sends funds from your wallet to another wallet. You must have sufficient crypto funds to pay for the transaction. There is a transaction fee that must be covered by the seller in order to generate the transfer.
In many ways, spending cryptocurrency is similar to sending someone money via an email message. To begin, you must know the intended recipient. Typically you will be given the recipient's crypto address. Because the address is a long, complicated alphanumeric string, you must ensure that the address is valid. It is always best to use the computer to copy the wallet address, then paste it into your wallet's “Send” feature. If you try to manually input a wallet address, you can easily make a mistake.
If you accidentally send crypto to an invalid address, there are several possibilities that may occur. First, the address that you enter for the transaction may be recognized as invalid by your wallet. This will prevent you initiating a transfer to an incorrect wallet address. Alternatively, the transaction may be accepted but will not go through the system. In some cases, the funds will be returned to your wallet. In other cases, the funds will be lost forever. Lost funds cannot be recovered by anyone in the future. It is for this reason that it is vital that you have the correct destination address for your transaction.
- Use a QR code for addresses that you can scan directly in order to reduce errors.
- Make sure that you have sufficient crypto to cover the value of the transaction, including the fee. Your wallet will have a setting for the fee which might be 0.0004 units. If the fee you pay is not high enough, your transaction may be delayed or denied.
- Make sure that you send to the intended recipient's address. If you send funds to the wrong address, they are gone. At a minimum, visually check the first and last 4 characters of the address to make sure that they match.
- Do not send to an old address, check first. Addresses are sometimes generated for specific uses. Once they are used, they may become invalid for the recipient. Be sure to confirm the destination address for every transaction.
- If you use an “Exchange” wallet, there may be additional security steps to follow such as email or 2FA verification.