How bitcoin exchange wallet system works?

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I mean if exchange generate new address for each user (getnewaddress)(rpc) ...but trade just goes in database of their not on real blockchain ,so how does exchange deposit address shows 0 balance on block explorer after selling my btc to someone.

If the trade happens in database only then that address should contain balance linked to it

Jignesh Chaudhary

Posted 2017-12-01T21:15:13.510

Reputation: 9

Answers

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Exchanges will often move funds from the deposit addresses to some other internal storage wallet. This wallet may be a cold storage wallet that is more secure than the wallet that initially holds your deposited coins. This will happen regardless of whether a trade occurred.

Andrew Chow

Posted 2017-12-01T21:15:13.510

Reputation: 40 910

Thank you so much for your answer also i have checked and traced some of my transaction on block explorer i checked my deposit account on blockchain which shows some btc 0.3 in it as balance and actually i have already sold that btc two days ago ,means my balance in their database is 0 but they haven’t moved that coins to cold wallet so it still shows the balance ? M i right? – Jignesh Chaudhary – 2017-12-02T00:25:04.883

Yes, that is correct. – Andrew Chow – 2017-12-02T02:10:48.273

Asked: 2017-12-01T21:15:13.510

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Active: 2017-12-01T23:03:01.160