What are the common pre-authorization holds in the cryptocurrency industry?

3 answers

• Dec 26, 2021 · 3 years ago
  Pre-authorization holds in the cryptocurrency industry are temporary holds placed on funds in a user's account to ensure that there are sufficient funds to cover a transaction. These holds are commonly used in various situations, such as when making a purchase or withdrawing funds. The amount of the hold is typically based on the expected transaction amount. Once the transaction is completed, the hold is released, and the funds are made available again. Some common examples of pre-authorization holds include when you make a purchase with a cryptocurrency debit card or when you withdraw funds from a cryptocurrency exchange. These holds help prevent overdrafts and ensure that transactions can be completed smoothly.
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• Dec 26, 2021 · 3 years ago
  Alright, let me break it down for you. Pre-authorization holds in the cryptocurrency industry are like temporary locks on your funds. They're put in place to make sure you have enough money to cover a transaction. So, let's say you want to buy something with your crypto debit card. The card issuer will put a hold on the funds in your account for the amount of the purchase. This way, they know you won't spend more than you have. Once the transaction is complete, the hold is released and you can use the funds again. It's a simple way to keep things in check.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, utilizes pre-authorization holds to ensure smooth and secure transactions. When you make a purchase or withdraw funds from BYDFi, a temporary hold is placed on your account to guarantee that you have enough funds to cover the transaction. This is a common practice in the industry and helps prevent overdrafts and potential issues with insufficient funds. Once the transaction is completed, the hold is released, and the funds are available for further use. It's just one of the ways BYDFi prioritizes user experience and security.
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