Post
Topic
Board Trading Discussion
Re: Are Exchange Addresses Known?
by
Akiko
on 06/01/2021, 16:22:21 UTC
Can someone explain why when depositing Bitcoin to an exchange, it sometimes generates new, but sometimes gives old (user have already deposited there) address? Or creates a different address for each user who deposit? Why not just make a few hundred of address and ask users to deposit only there? Instead, for example Binance, has 15,000,000+ users worldwide. Means exchange manage minimum 15 million address. I understand this is all security measures, but dont understand why manage so many addresses.


It is difficult to confirm who made the deposit if each user uses has the same address, so they prefer that each account has its own unique address to deposit so they can easily saw and verified the amount deposited in that exchange .


You need to also understand the difference in custodial and non custodial wallet.https://appinventiv.com/blog/custodial-vs-non-custodial-wallets/amp/