Sending cryptocurrency from one place to another can be confusing for new users. One of the most common mistakes is selecting the wrong blockchain network during a transfer, which can lead to permanent loss of funds. This guide explains the essentials of blockchain networks, how to choose the right one, and best practices to keep your crypto secure.
Understanding Blockchain Networks
A blockchain network is a decentralized digital ledger that records transactions. Different cryptocurrencies operate on different networks, and each network has its own protocols and native tokens. It’s essential to use a compatible network when sending or receiving crypto—otherwise, your transaction may fail or your assets could be lost.
Important
Always confirm that the receiving wallet supports the network you're using. Sending crypto via an incompatible network is a common error and recovery is often difficult or impossible.
Why Network Selection Matters
Crypto tokens are designed to work on specific blockchains. For instance, Bitcoin (BTC) operates on the Bitcoin network, while Ether (ETH) uses the Ethereum network. If you send a token over the wrong network—for example, sending an ERC-20 token via the Binance Smart Chain—the transaction will not be recognized by the receiving wallet.
Many users are tempted to choose networks with lower fees or faster speeds, but compatibility should always come first.
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Common Blockchain Networks Explained
Ethereum (ETH)
Ethereum is a leading blockchain that supports smart contracts and decentralized applications. Its native token is ETH, and tokens on this network follow the ERC-20 standard. Gas fees, paid in ETH, are required to process transactions.
Binance Smart Chain (BSC)
BSC is known for its high speed and low transaction costs. It uses BEP-20 tokens, and BNB is its native currency. While it’s Ethereum-compatible, not all wallets support BSC deposits.
Polygon (MATIC)
Polygon is a Layer-2 scaling solution for Ethereum. It uses the same address format as Ethereum and supports EVM (Ethereum Virtual Machine), making it user-friendly for those familiar with Ethereum.
Fantom (FTM)
Fantom is a high-performance Layer-1 blockchain that is fully compatible with Ethereum. Its native token, FTM, is used for transactions and network operations.
How To Avoid Sending Crypto on the Wrong Network
Follow these steps every time you make a crypto transaction:
- Verify the address – Ensure the public address is correct.
- Select a network – Choose one that both sender and receiver support.
- Confirm network compatibility – Check the receiving platform’s list of accepted networks.
- Send a test transaction – Start with a small amount to verify everything works.
- Complete the transfer – Once confirmed, send the remaining funds.
Skipping any of these steps increases the risk of errors.
The Role of Memo Codes and Destination Tags
Some networks and assets—like XRP (Ripple), XLM (Stellar), or ATOM (Cosmos)—require a memo or destination tag for incoming transactions. This extra field helps identify the recipient, similar to a reference number in bank transfers. If you omit this, your funds may be lost.
Always double-check whether a memo is needed before initiating a transfer.
What If You Use the Wrong Network?
If you send crypto via an unsupported network, recovery is often challenging. In some cases, you may regain access by importing your private keys into a wallet that supports both networks. However, this only works for non-custodial wallets—not when sending to exchanges.
For custodial platforms or exchanges, you must contact support immediately, though success isn’t guaranteed.
Frequently Asked Questions
What is a blockchain network?
A blockchain network is a decentralized system that maintains a public ledger of transactions. Different cryptocurrencies operate on different networks, and using the correct one is essential for successful transfers.
How do I know which network to use?
Always check the deposit or withdrawal page of the receiving platform. They will list supported networks. If unsure, start with a test transaction.
Can I recover crypto sent on the wrong network?
It depends. For non-custodial wallets, you might recover funds by switching to a compatible wallet. For exchanges, contact support, but recovery is not always possible.
Why do some transactions require a memo?
Memo tags or destination tags are used by certain blockchains to identify transactions within shared addresses, commonly used by exchanges for user account credit.
Are all Ethereum-compatible networks the same?
No. While networks like Polygon or BSC are EVM-compatible, they are distinct blockchains. Always confirm that the receiver supports the specific network you’re using.
What’s the safest way to transfer large amounts?
Always perform a test transaction with a small amount first. Once you confirm the test is successful, proceed with the full transfer using the same network and address.
Final Tips
Always prioritize security over speed or low fees. The receiving platform determines which networks are acceptable, so always confirm compatibility before transferring. By following best practices and staying informed, you can minimize risks and make secure transactions.
For further learning, consider exploring resources that cover blockchain technology and wallet management in greater depth.