If you have bought some ADA on Coinbase, you may be looking to send it to your Daedalus Wallet to stake ADA.
Here’s a guide on how you can do so:
Contents
- 1
- 2 How to transfer ADA from Coinbase to Daedalus
- 3 What are the fees that I’ll incur for transferring from Coinbase to my Daedalus Wallet?
- 4 Conclusion
How to transfer ADA from Coinbase to Daedalus
Here are 3 steps to transfer ADA from Coinbase to your Daedalus wallet:
- Obtain the ADA deposit address from your Daedalus wallet
- Select ADA as the currency you wish to withdraw from Coinbase
- Enter the transaction details and withdraw ADA using the Cardano network
Here is each step explained further:
Obtain the ADA deposit address from your Daedalus wallet
The first thing you’ll need to do is to create a Daedalus Wallet.
Don’t forget to keep your seed phrase secure, as this can be used by anyone to access your wallet!
Once you have created your wallet, you will need to go to the dashboard and select ‘Receive‘,
and this will show you the ADA deposit address that you’ll need to copy to Coinbase.
You may want to note that there are over 16 wallet addresses on Daedalus via which you can receive payments in ‘ada’ or native Cardano token.
Your address should start with ‘ada‘, which is a Cardano network address. This is different from ‘0x‘ addresses which are for the ERC20 and BEP20 networks.
If you are finding it hard to remember all of these long deposit addresses, you may want to consider simplifying them using Unstoppable Domains.
This allows you to send crypto to a .crypto or .wallet address, which makes it much easier to transfer cryptocurrencies between platforms!
Select ADA as the currency you wish to withdraw from Coinbase
Once you have copied the address from your Daedalus Wallet, you will need to select ‘Send/Receive’ on Coinbase’s dashboard.
After clicking on ‘Send/Receive’, you can search and select ADA as the cryptocurrency you wish to withdraw.
Enter the transaction details and withdraw ADA using the Cardano network
The next step will be to enter the transaction details.
After pasting the ADA deposit address from your Daedalus Wallet, Coinbase should automatically detect that you are sending ADA using the Cardano network.
This is because you are able to withdraw ADA using other networks as well. However, Daedalus only supports native ADA sent by the Cardano blockchain.
If you happen to send ADA using to your Daedalus Wallet using any network other than the native Cardano network, there is a chance that your ADA may be lost forever!
Once you have confirmed the transaction, you should receive ADA in your Daedalus Wallet.
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What are the fees that I’ll incur for transferring from Coinbase to my Daedalus Wallet?
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Cryptocurrency addresses typically incur a “mining” or “network” fee. This fee is paid to cryptocurrency miners, which are the systems that process the transactions and secure the respective network.
Accordingly, Coinbase will charge a fee based on the network congestion at the time of transaction.
It may be better to withdraw ADA from Crypto.com, which charges a slightly lower fee!
Conclusion
When you are sending ADA from Coinbase to Daedalus, you will need to ensure that you are sending it via the Cardano network. You can use this same method for other platforms, such as Crypto.com or Kraken.
If you are sending ADA via the BEP2 or BEP20 networks, there is a chance that your ADA may be lost forever!
You can use the BEP20 network when you are sending ADA to Metamask or Trust Wallet.
Once you have received ADA on your Daedalus Wallet, you will be able to stake it to earn ADA rewards. This is similar to how you would do so using other wallets like Exodus or Daedalus.
Otherwise, you can choose to lend your ADA on Crypto.com and receive interest instead!
If you’re looking to generate tax reports for your crypto trades, you can consider using Koinly, which allows you to track your transactions from 350+ exchanges and 50+ crypto wallets.
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Alright, breaking it down! First off, transferring ADA from Coinbase to Daedalus involves a few key steps:
-
Obtaining the ADA deposit address from your Daedalus wallet: This includes creating a Daedalus Wallet and securing your seed phrase. Then, in the dashboard, selecting 'Receive' to get the ADA deposit address, which starts with 'ada' and is unique for receiving payments in ADA.
-
Selecting ADA as the currency to withdraw from Coinbase: After copying the address from Daedalus, head to Coinbase, select 'Send/Receive,' search for ADA, and proceed with the withdrawal.
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Entering transaction details and withdrawing ADA using the Cardano network: Paste the ADA deposit address from Daedalus in Coinbase and confirm the transaction. It's crucial to ensure you're using the Cardano network; otherwise, your ADA might be lost.
Regarding fees, Coinbase charges a fee based on network congestion during the transaction. Crypto.com might offer slightly lower fees, so it's a consideration if you're mindful of fees.
Key points to remember:
- Networks: Daedalus supports native ADA sent via the Cardano blockchain. Sending ADA through other networks might result in permanent loss.
- Staking and Other Options: Once ADA is received in Daedalus, you can stake it for ADA rewards or explore lending options on platforms like Crypto.com.
- Tax Reporting: For managing tax reports on crypto trades, Koinly is recommended for tracking transactions across various exchanges and wallets.
As for the concepts involved:
-
Cryptocurrency Wallets (Daedalus, Coinbase): The process involves utilizing wallets to send and receive ADA. Daedalus is specific to Cardano, while Coinbase is a general exchange.
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Blockchain Networks (Cardano, ERC20, BEP20): Sending ADA specifically via the Cardano network is essential to prevent loss. ERC20 and BEP20 are networks associated with Ethereum and Binance Smart Chain, respectively.
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Cryptocurrency Transactions and Fees: Each transaction incurs fees, influenced by network congestion. Miners process transactions and secure networks, charging fees for their services.
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Staking and Lending: Staking involves holding funds in a wallet to support a blockchain network's operations and earn rewards. Lending allows users to loan their cryptocurrency and earn interest.
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Tax Reporting Tools (Koinly): Platforms like Koinly help in managing and generating tax reports for cryptocurrency transactions.
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Security Measures (Seed Phrases): Seed phrases are crucial for wallet security, serving as a backup to access wallets in case of loss or device failure.
The article also touches on simplifying addresses using Unstoppable Domains, providing a more user-friendly way to send and receive cryptocurrencies.
This comprehensive guide demonstrates the intricate process of transferring ADA between platforms and highlights the importance of network specificity and security measures in the crypto space.
