How do authorization holds work in the context of digital currencies?

3 answers

• kishorAug 27, 2024 · 10 months ago
  Authorization holds in the context of digital currencies are a way for exchanges or platforms to reserve funds on a user's account for a specific transaction. It's similar to a temporary hold on your credit card when you make a purchase. The held funds are not yet deducted from your account, but they are set aside to ensure that the transaction can be completed. Once the transaction is finalized, the held funds are either deducted or released back to your account, depending on the outcome of the transaction. This process helps prevent overspending or double-spending of digital currencies.
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• Ali ShaikhJul 20, 2024 · a year ago
  When it comes to authorization holds in the context of digital currencies, think of it as a security measure. It's like putting a temporary lock on your funds to ensure that the transaction goes smoothly. The held funds act as a guarantee that you have the necessary balance to complete the transaction. Once the transaction is confirmed, the hold is either removed, and the funds are deducted, or the hold is released, and the funds are made available again. It's a way to protect both the user and the platform from fraudulent or unsuccessful transactions.
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• SomolokoMay 07, 2024 · a year ago
  At BYDFi, we also utilize authorization holds in the context of digital currencies. It's an important part of our security measures to ensure smooth and secure transactions. When you initiate a transaction, we temporarily hold the necessary funds on your account to guarantee the availability of funds. Once the transaction is completed, the held funds are either deducted or released back to your account. This process helps prevent insufficient funds or unsuccessful transactions. It's just one of the ways we prioritize security and user experience at BYDFi.
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