Exchange Wallet

An exchange wallet is cryptocurrency wallet infrastructure used by an exchange to receive, hold, and send crypto assets. Centralized exchanges may use such wallets to manage assets belonging to many customers.

A user may receive a dedicated deposit address, while the exchange may technically manage the assets through a larger address system or pooled wallet architecture. Once a transaction receives the required confirmations, the exchange can credit the corresponding internal balance.

Exchanges may use hot and cold storage systems. Key management is a critical part of custody security because compromise of wallet infrastructure can result in asset loss. This also illustrates the distinction between custodial exchange storage and self-custody.