How to Move Funds From ETH to Arbitrum
Does all of the recent CEX drama fill your head with defi dreams? Are you done dealing with exorbitant gas fees on Ethereum Mainnet? Arbitrum can fix a lot of these problems.
But the first thing you need to do is get there, right? This will be a multi-stage process, though it’s not as complicated as it sounds.
We’ll show you how to add Arbi to your Metamask wallet, bridge funds to the chain, and then give you an idea of some tokens you can expect to find once you’re there.
This article will explore how to bridge ETH and other Ethereum tokens onto Arbitrum using various methods.
We will also discuss bridging these two platforms' potential benefits and drawbacks and the tokens you'll find in this ecosystem once you're there.
How to Add Arbitrum to MetaMask
Before you bridge, you'll want to set up the network in your MetaMask wallet. There are three different ways to do this.
The first way is to go to the project you want to invest in and add Arbitrum One when prompted by your wallet itself. This is usually fine, but there is one caveat.
Scammers and hackers will set up fake websites, get new users to add their MetaMask, and then rob them blind. These counterfeit sites often show up on Google. So there is some risk with this method. Always make sure you’re going to the actual website.
The second method is to go directly to the Arbitrum One bridge, which you can find here. Connect your wallet to this trusted website. Then you can bridge funds from it.
The third method is the most popular, and that's to input the information manually. It's much simpler than it sounds. Here are the steps:
Your wallet will be connected to Ethereum Mainnet by default. Click on that button at the top of the app, and you'll see a drop-down menu. Now click on the button that says Add Network.
Here, you'll put in the following information:
Network name: Arbitrum One
New RPC URL: https://arb1.arbitrum.io/rpc
Chain ID: 42161
Currency symbol: ETH
Block Explorer URL: https://arbiscan.io/
And you're all set. Welcome to the club.
What Is Bridging in Crypto?
This awesome DeFi-specific feature allows users to move their digital assets from one blockchain platform to another without going through traditional centralized exchanges.
Bridging in crypto is a way of connecting two different blockchains to securely transmit digital assets across the networks. By bridging two or more blockchains, users can move their digital assets between diverse ecosystems quickly and easily.
Think of cryptocurrency as a planet. On this planet, there are different blockchains, which you can compare to countries in this scenario. Whenever you travel, you need to spend money, have a passport, exchange currencies, etc.
The same is true with these ecosystems.
Suppose you want to go from one to another. In that case, you need to bridge assets to the new blockchain, which will cost you money on the first chain by paying a transaction fee, and on the second because you need to initially bridge whatever token you can use for transactions.
You may need a new type of currency, and it may be something with which you aren't very familiar.
And that's ok. Crypto, especially DeFi, has so much to explore. However, there are some drawbacks.
The Dangers of Bridging
By the time 2022 was half over, $1.4 billion in been lost in crypto hacks using bridge vulnerabilities. And these exploits now make up half of all crypto hacks regarding money being lost.
Crypto bridges offer the advantage of exchanging different types of coins and tokens, but their implementation also brings security risks.
The intersection of several blockchain networks causes potential vulnerabilities, and any disruption or attack on one could lead to a chain reaction that could reduce security for all participating chains.
This would leave users vulnerable to stolen funds, lost transactions, and potential losses in value if currencies become inaccessible.
To counter these risks, it is vital to use reliable bridge protocols and ensure that they are tailored to each specific exchange so they can preemptively protect against malicious activities.
With so many options for moving funds from one ecosystem to another, how do you choose the best one? The fasted? The cheapest?
If you're coming from Ethereum, you've probably used a dex aggregator before, such as Firebird or 1inch.
There are also bridge aggregators. Bungee is one of the best services currently.
You input the chain you're bridging from, the one you're moving to, the tokens you're bridging, and what you want on the other side. They even offer a refueling option for gas fees on your new chain.
After plugging in this information, you'll be presented with multiple options, with estimated speeds and associated gas fees for that transaction. All you need to do is choose an option from the ones shown, approve, and bridge.
Whilst ETH used to be the native token for ARB, it now has its own token within the ETH ecosystem. The transaction fees on this chain are a fraction of what you spent on Mainnet. Expect to pay just a few cents for each activity here.
The biggest DEXs in DeFi are also present for all of your swapping needs, including Balancer, Uniswap, and Sushiswap.
Ethereum still has a lot more venture capital and projects, but Arbirtum isn't slacking, and they're catching up quickly. They're currently the 4th largest blockchain by TVL and the number one layer 2 solution in DeFi.
Arbitrum One is a fast and secure way to bridge assets between blockchains, allowing users to move digital assets quickly and easily.
While some security risks are associated with bridging, these can be mitigated by using reliable bridge protocols tailored to each exchange.
Bungee is one of the best services currently available for choosing an option from multiple bridges, along with estimated speeds and gas fees for that transaction.
Arbitrum has become the 4th largest blockchain in terms of TVL and the number one layer 2 solution in Defi, making it a great choice for transferring tokens ETH, BTC, and all of the most-trusted stablecoins.
With its growing popularity amongst crypto enthusiasts and venture capitalists alike, Arbitrum might have what it takes to revolutionize DeFi.
Coin Telegraph - Bridge hacks
CNBC - Bridge hacks