The Importance of Checking What Blockchain the Cryptocurrency You’re Sending Is On
Did you know that some cryptocurrencies exist on different blockchains?
Take AVAX for instance. AVAX is the native token of the Avalanche blockchain network. Yet, the Avalanche blockchain has three built-in blockchains:
We won’t go into detail here about the role of each of these chains – but it’s worth noting that the most commonly used chain is the C-chain.
Think of the different blockchain networks as a mailing system. You can send a letter through a wide variety of postal services, including Canada Post, DHL, FedEx, and more. Your letter can exist and be sent through the aforementioned channels, but sometimes, there are companies that only accept deliveries from or through a specific postal service.
For example: Imagine Sally used Canada Post to send mail to Bob who only accepts FedEx post. Canada Post will drop off Sally’s mail into Bob’s mailbox to fulfill its responsibility. But it will not have any control over what Bob does with the mail given he only accepts FedEx post. Bob could accept, reject or throw away the mail as he pleases. If Sally wanted to ensure Bob received the mail then she would have to use FedEx to mail Bob a package. Thus, highlighting the importance of using the correct mailing service to ensure the successful delivery of a mail order.
Similarly, AVAX can exist and be sent to and from these three different chains.
- When AVAX is sent on the X-chain, it is called an AVAX X-chain variant.
- When it is sent on the C-chain, it is called an AVAX C-chain variant.
- When it is sent on the P-chain, it is called an AVAX P-chain variant.
Sending the wrong variant of cryptocurrencies or sending it on the wrong blockchain could result in you losing your coins. Believe it or not, it’s a common mistake that happens to a few people (even to the well-seasoned investor).
Once the cryptocurrencies have left your crypto wallet, there is no way to reverse the transaction. It is therefore your responsibility to do your due diligence and check that when you are sending AVAX (or any other cryptocurrency) that you are:
(1) sending the correct version (variant) of the cryptocurrency
(2) sending it on the right blockchain
At Netcoins, we support specific variants of cryptocurrencies, which we indicate on the platform’s “FUND”, “WITHDRAW” and “BUY/SELL” pages.
While we do our best to communicate this with our customers, it is ultimately up to them to ensure they are sending the right cryptocurrency variants across the appropriate blockchain.
We hope this article helps you understand the importance of reviewing what blockchains the cryptocurrencies you’re sending are on.
If you’re looking to purchase Bitcoin or other cryptocurrencies, buy Bitcoin with Netcoins. Netcoins is a fully regulated crypto trading platform in Canada.
If you want to learn more about all things in crypto, read more here.