Russia’s invasion of Ukraine has drawn an outpouring of sympathy in the crypto community and beyond.
Many people want to help Ukrainians by sending them cryptocurrency, but they come up against an obstacle: how to do this when the recipients are in a war zone? And specifically: how to ensure that the crypto gets to the intended recipients and how to ensure that the recipients are not exposed to the authorities?
How to send crypto?
Digital currencies can be sent to anyone, wherever they are, and in a flash. To send crypto, you must have already bought something. Here’s how to do it.
Keep your crypto in a secure crypto wallet.
This wallet in turn can be placed on an exchange platform like Coinbase (coin), Crypto.com, Blockchain.com, Binance, Gemini, FTX US or Kraken. This is called hosted wallet.
You can also store your crypto offline in a self-custodial wallet or in a hardware wallet. It’s a physical device, about the size of a thumb drive, that stores the private keys in your crypto.
The keys ensure that only you have access to the crypto. But don’t lose those keys – don’t get lost. If you do this, you will lose access to your crypto forever.
If you are a non-profit that aims to crypto for Ukrainian status, you must first establish some rules and policies/procedures and make certain disclosures. It usually involves some documentation. It is best to contact a lawyer specializing in this space to form a non-profit organization.
Sending cryptocurrency is “the same” [as if] You have written a check or if you have wired money. … it’s just a different asset that you’re used to,” said Chris Kline, co-founder and chief operating officer of crypto investment firm Bitcoin IRA.
How to get crypto?
The crypto space is decentralized: unlike traditional centralized finance, no central authority or intermediary can suspend or cancel crypto transactions. So the participants should be ultracareful.
The recipient must have a crypto wallet, which can again be kept on the exchange platform or offline. The recipient must provide the address of his crypto wallet to the sender, who will transfer the digital currencies to that address.
Kline recommends starting by sending a small amount to make sure the address is correct and that the recipient, in particular, is the right person.
“I always do this thing called a microtest,” says Kline. “It’s pretty common in this space. Where you’re giving me a wallet address, I’m putting it in, but there could be a human error.”
In a subtle test, he says, “I’ll just send you a little [of crypto], You confirm with me the details of the transaction, such as what was received, what date and time, [and] Telegram number.” Once it’s confirmed, “I can send you the full balance.”
What can the recipient do?
The recipient has options. They can withdraw cryptocurrency from their wallet and convert it into local currency through one of the cryptocurrency brokerages. Or they can spend crypto directly at merchants who accept them in exchange for goods and services.
How to make sure you are not scammed?
If you’re sending crypto to friends and family, verifying their identity isn’t a problem. They can set up a crypto wallet with you and exchange crypto addresses.
But if you want to donate more widely, experts recommend sending crypto through nonprofits on the ground, in this case Ukraine.
In turn, when you go through nonprofit and charitable groups, find key ones that have been investigated. It requires some research but will ensure that your donation reaches those in need.
How to ensure recipients remain anonymous?
Keep in mind that in blockchain technology, transaction data – transfer amount, crypto wallet address – can be viewed by anyone.
What remains anonymous is the identities of the senders and recipients. At the same time, that anonymity is not guaranteed. Experts say that by carefully examining cryptocurrency addresses, the identities of the participants may eventually be determined.
Law enforcement has visibility into cryptocurrencies, but the tools they have are best suited for targeting high-value targets. So in a situation where large numbers of protesters and refugees are using crypto to transfer small amounts of money, it becomes more difficult to track people’s identities.
