Is the 3 day rule applicable to buying and selling digital currencies?

3 answers

• May 06, 2022 · 3 years ago
  The 3 day rule, also known as the T+3 settlement rule, is a regulation that applies to the trading of stocks. It requires that the buyer's payment and the seller's delivery of the stock must be completed within three business days of the trade. However, this rule does not directly apply to buying and selling digital currencies. Cryptocurrency transactions are typically settled instantly or within a few minutes, depending on the blockchain network. Therefore, there is no specific waiting period like the 3 day rule in traditional stock trading.
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• May 06, 2022 · 3 years ago
  No, the 3 day rule does not apply to buying and selling digital currencies. Cryptocurrency transactions are decentralized and operate on blockchain technology, which allows for immediate settlement. Unlike traditional stock trading, there is no need for intermediaries or clearinghouses to facilitate the transactions. This means that once a cryptocurrency transaction is confirmed on the blockchain, the ownership of the digital asset is transferred instantly. So, you don't have to wait for three days to complete a cryptocurrency trade.
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• May 06, 2022 · 3 years ago
  While the 3 day rule does not directly apply to buying and selling digital currencies, it's important to note that different exchanges may have their own policies regarding transaction settlement. For example, BYDFi, a popular cryptocurrency exchange, follows a 24-hour settlement period for certain types of trades. However, this is not a regulatory requirement but rather an internal policy of the exchange. It's always advisable to check the specific rules and policies of the exchange you are using to ensure a smooth trading experience.
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