How Deposits and Withdrawals Work on a Crypto Exchange

Deposits and withdrawals involve both blockchain transactions and internal account processing within the exchange.

High-Level Process Overview

In general, the process includes:

1. Initiating a transaction (deposit or withdrawal)

2. Broadcasting the transaction to the blockchain network

3. Waiting for network confirmations

4. Updating the user’s account balance

The exact flow may vary depending on the asset, network, and platform configuration.

Blockchain Confirmations Explained

Blockchain confirmations ensure that a transaction is finalized and irreversible.
Until the required number of confirmations is reached, the transaction may remain pending.

Different networks may require different confirmation thresholds.

Important Notes

• Confirmation times may vary

• Delays can occur during network congestion

• Incorrect network selection may result in asset loss

• Testnet behavior may differ from mainnet