3 ways to easily move funds from one chain to another

3 ways to easily move funds from one chain to another

By CryptoSorted | CryptoSorted | 1 Jun 2021


One challenge that comes with using multiple smart contracts chains is how to move funds from one chain to another, especially if you don't want to use a centralized exchange.

In this post, I will be sharing with you the various ways I use to move funds between Ethereum, Binance Smart Chain, and Solana (the 3 chains I currently use).

But first, let's talk about why you can't just send any coin or token to any wallet of any chain.

 

Different token standards

The different smart contract chains like Ethereum, BSC, Solana, etc, all have different token standards.

Ethereum tokens are designated as ERC20, BSC as BEP20, and Solana as SPL.

An Ethereum-based token cannot be used on the BSC or Solana and vice versa.

Therefore to use any coin or token from one chain on another, you will first need to convert it to the token standard of the chain you want to use it on.

And you can do this through centralized exchanges like Binance and FTX, instant swap exchanges like ChangeNOW, or crypto bridges like Binance bridge and Sollet wallet.

Let's discuss how each of the above options works in real life below.

 

1. Via centralized exchanges (CEX)

The easiest way to move funds from one chain to another is via a centralized exchange like Binance and FTX.

To do that first you need to transfer whatever coin you have now to your Binance or FTX exchange account.

For example, if you have ETH and you want to use it on BSC, you will need to deposit your ETH to your Binance exchange account first, then withdraw it to a BSC wallet address as a BEP20 token.

The same applies if you have BNB or ETH and you want to use it on Solana.

First, you will have to deposit it to FTX and then either buy your desired SPL token or withdraw the funds to your Solana wallet as an SPL token.

I either case, Binance and FTX will do the work of wrapping your token or coin to the appropriate token format which you can use on the other chain.

Binance is most appropriate for moving funds onto BSC while FTX is most useful for moving funds to the Solana chain.

Another exchange that now supports withdrawing tokens in BEP20 format is KuCoin. So you may also want to try that out too, whichever is more convenient.

PS: If you want to withdraw from BSC or Solana back to Ethereum for example, all you need to do is send the tokens to the relevant exchange and withdraw them as ERC20 tokens and vice versa.

 

2. Via blockchain Bridges

Blockchain bridges as the name suggest helps you move funds from one supported chain to another.

The most popular bridges for moving funds from the Ethereum chain to BSC and Solana are the Binance bridge and the Sollet Wallet.

Currently, the Binance bridge supports multiple chains - BSC, Ethereum, Bitcoin, Tron, EOS, BCH, ATOM, etc. Thus it will come in handy if your operation goes beyond just Ethereum, BSC, and Solana chains

Sollet wallet on the other hand currently supports only Ethereum and Solana assets with planned support for Terra chain in the nearest future.

Using these bridges, especially the Binance bridge is simple and straightforward.

  • First, click to open the bridge and connect your Metmask or BSC wallet.

  • Then select the coin or token you wish to transfer and choose the chain you want to move it to.

  • Enter the amount of the coin your wish to move or simply click the Max button to move everything.

  • Finally, provide the destination or receiving wallet address and click next to proceed and finish the conversion.

To learn how to convert ERC20 tokens from Ethereum to SPL on Solana, please follow this simple and comprehensive guide by the Serum Academy.

 

2. Via instant swap exchanges

Recently I want to transfer some Ethereum from a Binance exchange account to an Ethereum wallet but Binance was asking for a $19 network fee which I was not ready to pay.

That's where I got the idea to try my favourite instant swap exchange -ChangeNOW.

Instant swap exchanges are non-custodial services that help you convert an unlimited amount of any coin or token to another instantly with no registration or KYC required.

Since I wasn't willing to pay almost $20 to send ETH from Binance to my Ethereum address where I needed it on-chain, I decided to move BNB through ChangeNOW and get it converted to ETH and deposited into my designated Ethereum wallet.

The transaction cost me about $2.5 and here's how it works.

  • First, click to go to the ChangeNOW website

  • Choose the coin you want to send and enter the amount

  • Then select the coin or token you wish to receive and the amount you will get will be automatically populated using live exchange prices.

  • If you're satisfied with what you see, click the green Exchange button to proceed.

  • You will be asked to enter the designation or receiving wallet address.

  • Once you provide that, a wallet address will be generated for you to send your BNB or whatever coin/token you're sending to.

  • Send the coin/token and it will be automatically converted using the best rates on supported exchanges and your desired coin or token will be credited to your wallet accordingly all within 5 to 10 minutes.

Click here to read my review of ChangeNOW and my step-by-step guide on how to use the platform.

 

Conclusion

Switching from one blockchain network to another shouldn't require a degree in rocket science for anyone -even a newbie.

The easiest way is through centralized exchanges.

All you have to do is deposit your funds on the relevant exchange and withdraw the token of the chain you want to move funds to.

However, that exposes you to the problems of centralization and possible privacy breaches.

This creates a perfect case for blockchain bridges. These bridges are decentralized and non-custodial, but they too have their limitations and usually poor user experience.

A third option is to use instant swap exchanges that require no registration, no KYC, and no trade limits plus in some instance could offer you the best deals.

The only challenge with instant swap exchanges being that they may not support all chains or tokens.

Thus, depending on what your immediate needs are, you may have to use one or more of these options to achieve your aim of moving funds from one chain to another seamlessly at different times.

 

Which is your favourite method of moving funds from one chain to another? Share with us in the comments section below.

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