In this article:
You will learn what crypto networks are, how they work, and what this means for you when using your Best Wallet.
Every cryptocurrency operates on a crypto network, also sometimes known as a blockchain network, chain, or mainnet. For example, Bitcoin tokens (BTC) exist solely on the Bitcoin network.
Best Wallet currently supports three major cryptocurrency networks: Ethereum, Polygon, and BNB Smart Chain. That means you can buy, swap, hold, and send any cryptocurrency available on these supported crypto networks.
The next supported network in Best Wallet will be Bitcoin.
Let's dive into what crypto networks are and why they matter.
What are cryptocurrency networks?
A cryptocurrency network is essentially a digital infrastructure that facilitates cryptocurrency transactions. Think of it as a unique digital highway for each type of cryptocurrency.
Bitcoin, Ethereum, Polygon, and BNB Smart Chain are examples of such networks, each with its own rules and characteristics. When you transact with Ethereum (ETH), for instance, you're using the Ethereum network, which has distinct properties and qualities.
Key features of crypto networks
Transaction Fees: Each network has its own fee structure for transactions, which can significantly affect the cost of sending or swapping cryptocurrencies.
Transactions per Second (TpS): This measures how many transactions a network can handle in a second, affecting how fast your transactions are processed.
Operating Mechanisms: How a network operates can vary, influencing aspects like security, speed, and decentralisation.
Match your crypto tokens with their networks
Cryptocurrencies can exist on multiple networks simultaneously. A prime example is the Tether token (USDT), which can be found on the Ethereum network, the BNB Smart Chain network, and many more.
This multiplicity underscores the importance of ensuring that the network you choose for sending, swapping, or depositing matches the network of the cryptocurrency you’re trading.
Selecting the wrong network can lead to lost funds, as the transaction may not be recognised across incompatible networks.
For example, if you want to send your USDT tokens to another wallet, first check what network your USDT is on. The quickest way to check in Best Wallet is to check the symbol next to your USDT in your token list. If your USDT tokens are BNB Smart Chain-based, you will have to send them via the BNB Smart Chain network.
This is because there are things called token standards, which effectively means types of tokens. Most crypto networks will have a native token standard, which is a set of rules that make it easier for developers to design tokens on that specific network.
So, a token that is on the BNB Smart Chain network is mostly likely to the BEP-20 standard, whilst a token on the Ethereum is most likely to the ERC-20 standard.
Why crypto networks matter on Best Wallet
When using Best Wallet, understanding the network your cryptocurrency operates on is important for several reasons:
Ensuring Successful Transactions: Matching the correct network ensures your transactions are processed without issues. Trying to send a BNB Smart Chain token via the Ethereum network will result in a failed or lost transaction.
Minimising Costs: Knowing the fee structure of different networks can help you choose the most cost-effective option for your transactions. Owning tokens on the Ethereum network can work out to be more expensive, due to Ethereum's high gas fee structure and often congested network.
Optimising Transaction Speeds: Familiarity with a network's Transactions per Second (TpS) can help you estimate transaction times, allowing for better planning and execution of your crypto transactions. For example, Ethereum's TpS is around 14 transactions per second, whilst BNB Smart Chain TpS operates at around 45.3 transactions per second. The quicker the transacting time, the closer you will be able to get trade prices that reflect the current token value.
Having issues understanding crypto networks?
If you're struggling to understand crypto networks and what this means when sending, receiving, or swapping your crypto, please email [email protected] and the support team will help you troubleshoot and resolve your issue.