LESSON 5 · NOTES

Networks and transfers: why a coin may not arrive

One USDT, more than a dozen networks. Let’s look at what that means, how not to lose money on a transfer, and why it matters for arbitrage.

Three takeaways

1. One asset, many ledgers. USDT is a token: it has no blockchain of its own and is issued on more than a dozen other chains. USDT on Ethereum and USDT on Tron are different entries in different ledgers, even though both are worth a dollar.

2. The sending network must match the receiving network. Take the address from the “Deposit” section of the receiving exchange, for the network you’ve chosen. Where there’s a memo, it’s mandatory.

3. Choosing a network means choosing the transfer’s time and cost. That’s where the “anywhere from a minute to an hour” difference between transfers comes from. It’s a property of a specific network, not of crypto in general.

1. What ERC-20, TRC-20 and the rest are

Bitcoin is an entry in a ledger. USDT isn’t a coin with its own blockchain but a token: it has no ledger of its own and lives in other people’s. It has been issued on Ethereum, Tron, BNB Chain, Solana, Polygon and about a dozen other networks. Names like ERC20 or TRC-20 mean only one thing — which ledger a particular USDT sits in. USDT on Ethereum and USDT on Tron are two different entries in two different databases. Both are worth a dollar, both are accepted by exchanges, but they are not the same thing. That’s why an exchange has a separate deposit address for each network: for ERC-20 it starts with 0x, for TRC-20 with T.

2. What “choosing a network” means

There’s no such thing as a transfer of “just USDT” — there’s a transfer over Ethereum, over Tron, over Solana. Choosing a network means choosing which ledger the transfer goes through. The recipient’s address must belong to that same network. If you send over Tron to an Ethereum address, the Tron ledger doesn’t know that address — there’s nowhere to record the coins.

3. Three transfer rules

1. Sending network = receiving network. Always. This isn’t a recommendation, it’s a law.

2. The address comes from the “Deposit” section of the receiving exchange, for that network. Not from your history and not from a chat — from the deposit section, every time.

3. A memo or tag — wherever there is one. For some coins (most often XRP and TON) the exchange keeps one shared address for all users. The memo is your number inside that address. Without it the coins reach the exchange but not your account. If the exchange shows a memo field, it’s mandatory.

4. What happens when you make a mistake

1. The network isn’t supported by the receiving exchange. The coins went into a ledger where the exchange has no wallet. Nobody can retrieve them — they’re lost.

2. A look-alike network. Ethereum, BNB Chain and Polygon use the same address format. The transfer goes through without an error, but the coins end up in the wrong place. This is the most common beginner mistake — and the system doesn’t catch it.

3. Support recovered them for a fee. It happens, but not always — it depends on the exchange and the amount. You can’t count on it.

Choosing a network means choosing the transfer’s time and cost. That’s where the “from a minute to an hour” from the first lesson comes from.

5. Why this matters for arbitrage

Networks differ in speed and fees. ERC-20 is an expensive network, especially at busy times; BEP-20 and several others are many times cheaper, and which one is cheapest changes over time. In most arbitrage setups you have to move coins between exchanges, and your choice of network directly affects how much you spend and how quickly you close the trade. The exception is setups within a single exchange, such as perp against perp: there are no transfers there.

6. How not to lose your coins

1. Your first transfer to a new exchange is a test with a small amount. Once it arrives, send the rest.

2. Check that the receiving exchange supports the network. Look in its deposit section, not in your own withdrawal section.

3. Compare the first and last four characters of the address. That’s enough, and it takes three seconds.

Terms

• Token — An asset without its own blockchain, issued inside another one. USDT is a token; bitcoin is a coin with its own ledger.

• Network — The blockchain whose ledger the transfer goes through. ERC-20 is the Ethereum network, TRC-20 is Tron, BEP-20 is BNB Chain.

• Deposit address — The address an exchange gives you to receive coins on a specific network. Each network has its own.

• Memo / tag — A number attached to a transfer so the exchange knows whose coins arrived at a shared address. Mandatory wherever it exists.

• Network fee — The charge for processing a transaction in the ledger. Depends on the network and how busy it is; not to be confused with the exchange fee.

• Confirmation — Inclusion of the transfer in a block of the ledger. Exchanges wait for several confirmations before crediting it — hence the waiting time.

Test yourself

Can you send USDT over TRC-20 to an address starting with 0x?
No. An address starting with 0x belongs to Ethereum, BNB Chain or Polygon. The Tron ledger won’t recognize it. The sending network and the address’s network must match.

What happens if you send TON without a memo?
The coins arrive at the exchange’s shared address but won’t be credited to your account — the exchange won’t know whose they are. From there it’s only a support ticket, with no guarantees.

Why can a transfer of the same coin take a minute or an hour?
Because these are different networks with different speeds and different loads. Transfer time is a property of the chosen network, not of crypto in general.

Next lesson: stablecoins — what USDT really is, why all arbitrage is counted in it, and how it differs from USDC. Trade breakdowns and what’s happening in the market — on our Telegram channel @arbiq_ai · t.me/arbiq_ai

This material is for educational purposes only and is not investment advice. Any trading decisions are yours alone and made at your own risk.