HOW EXCHANGES PROCESS WITHDRAW?

[ronypro]

I am very curious how exchanges like bittrex,bitfinex,cryptopia and so on process withdraws of any coins.
Ex:I request 1 btc to withdraw from bitterx to my exodus wallet.
Now every time i observe it never happen instantly means after some time like 5 minutes after the request was places the actual transaction get into blockchain.

So the question here is,they make this transaction manually?Means they transfer the coins from their personal wallet to my exodus wallet manually?
If its not manual then why is the 5 minutes time gap?
If its automatic then how this works means this automatic withdraw from a wallet to another wallet with coding ,can anyone refer to some example codes?

Lastly I understand this is not a very easy question to ans so I hope some very advanced and very knowledgeable person like a hero or legendary member will help me here.

[mobnepal]

Each exchange platform might have their own way of processing withdrawals but most of them process withdrawals in batches or bundles so that they can save on transactions fees and not have multiple unconfirmed input (balances) in their hot wallets. I am not quite sure but they only push next batch of withdrawals when one of the previous batch get atleast one confirmation on the blockchain.

They might also manually verify few of the suspicious and big withdrawal request before processing them.

[countryfree]

I can't imagine any exchange processing withdrawals manually.

The delay could be a safety measure. Some services send an email or a text before each withdrawal, with the suggestion of freezing the account in the case the withdrawal not having been ordered by the legitimate owner. So the delay could be to check there isn't a request to kill the withdrawal. I'm not sure of this, though, it's only a suggestion but don't give too much consideration to those 5 minutes.

[error08]

Indeed, it would be a mess to process all the withdrawal manually, send it in a batch will be more make sense, as I've never seen an exchange mentioned how they deal with all of this stuff, it's like a secret of their service. So, 5 or 10 minutes gap between your withdraw demand and exchanges send bitcoin isn't a problem as they have to verify every transaction and wait until a certain amount of transactions (maybe 100 or 1000) to dispatch at once.
In a case if a user decides to withdrawal a high amount of a coin, an exchange need to process the transaction manually, split the transaction into pieces and withdraw from their cold storage to reassure safety. And waiting time for a transaction to happen, depends entirely on the blockchain network as a block will be generated every 10 minutes.

[Salmen]

There is an algorithm behind that. The algorithm checks if the hot wallet has sufficient funds for the requested amount of the user and whether the amount is not too high, otherwise, it will be done by the administration of the exchange or an additional verification is needed by the user himself. Once done, the amount will be sent to the bitcoin address along with other requested withdrawals because it is effective for saving transaction fees than sending for each withdrawal one transaction.

[oseventwenty]

For sure noone is processing transactions manually....

It could take to a errors....and we are talking about money....

[piloder]

For sure noone is processing transactions manually....

It could take to a errors....and we are talking about money....

I think exchanges will only maintain some bitcoin in their hot wallet so when it will be empty they will add some from their cold wallet, this can delay withdrawals.

Also I have heard that few exchanges manually verifies some of the withdrawals if they found something not right with the request like different IP used for logging in and withdrawal.

[razzbee]

None does it manually, they are all automated, Note that most exchanges has two types of coin storage, cold and hot storage, and maybe widrawal is scheduled every xminutes where x could be any number.So I would say its a security feature

[Quidat]

I can't imagine any exchange processing withdrawals manually.

The delay could be a safety measure. Some services send an email or a text before each withdrawal, with the suggestion of freezing the account in the case the withdrawal not having been ordered by the legitimate owner. So the delay could be to check there isn't a request to kill the withdrawal. I'm not sure of this, though, it's only a suggestion but don't give too much consideration to those 5 minutes.

I agree on what you do said i cant imagine on those exchanges do process withdrawals manually since it would really takes time and would really be prone on error. There might some delay because some some security check or they would somehow compile those request and would be sent by batch to save up fees on each transactions.This is why you shouldnt really expect to have instant transfer after a request.

[audaciousbeing]

I am very curious how exchanges like bittrex,bitfinex,cryptopia and so on process withdraws of any coins.
Ex:I request 1 btc to withdraw from bitterx to my exodus wallet.
Now every time i observe it never happen instantly means after some time like 5 minutes after the request was places the actual transaction get into blockchain.

So the question here is,they make this transaction manually?Means they transfer the coins from their personal wallet to my exodus wallet manually?
If its not manual then why is the 5 minutes time gap?
If its automatic then how this works means this automatic withdraw from a wallet to another wallet with coding ,can anyone refer to some example codes?

Lastly I understand this is not a very easy question to ans so I hope some very advanced and very knowledgeable person like a hero or legendary member will help me here.

In exchange site, everything is not automatic and they have different way of doing it. I know of c-cex own is automatic maybe depending on the withdrawn amount because the moment you click the confirmation email sent to your mail box, the amount enters your wallet immediately. But for others, I think there would be some amount you get to have instantly while some other amounts they have to do manual confirmation to be sure things are going well.

Some other  exchange sites do it in batches in other to minimize the transaction fees of having to send it individually. They have their reason but eventually so far the fund will land there is no cause for alarm.

[adzino]

I am very curious how exchanges like bittrex,bitfinex,cryptopia and so on process withdraws of any coins.
Ex:I request 1 btc to withdraw from bitterx to my exodus wallet.
Now every time i observe it never happen instantly means after some time like 5 minutes after the request was places the actual transaction get into blockchain.

So the question here is,they make this transaction manually?Means they transfer the coins from their personal wallet to my exodus wallet manually?
If its not manual then why is the 5 minutes time gap?
If its automatic then how this works means this automatic withdraw from a wallet to another wallet with coding ,can anyone refer to some example codes?

Lastly I understand this is not a very easy question to ans so I hope some very advanced and very knowledgeable person like a hero or legendary member will help me here.

As far as i know, they have hot wallets and cold wallets. Hot wallets do small transactions and gets refilled by cold wallets from time to time. When you do larger transactions, they check if hot wallet can cover the transaction. If it can't then the cold storage moves fund to the hot wallet for which some time takes place. And if the transaction is too large, then it is processed manually.

[TheCoinFinder]

I am very curious how exchanges like bittrex,bitfinex,cryptopia and so on process withdraws of any coins.
Ex:I request 1 btc to withdraw from bitterx to my exodus wallet.
Now every time i observe it never happen instantly means after some time like 5 minutes after the request was places the actual transaction get into blockchain.

So the question here is,they make this transaction manually?Means they transfer the coins from their personal wallet to my exodus wallet manually?
If its not manual then why is the 5 minutes time gap?
If its automatic then how this works means this automatic withdraw from a wallet to another wallet with coding ,can anyone refer to some example codes?

Lastly I understand this is not a very easy question to ans so I hope some very advanced and very knowledgeable person like a hero or legendary member will help me here.

The exchanges you have mentioned here as an example, undoubtedly process transactins manually as sometimes your transactin gets invisible at bitrex.
But if we talk about alternate exchanges like changelly.com, they have automatic exchanger working on accurate instructions.
Ther is no time delay, no obfuscation.

[el kaka22]

Each exchange platform might have their own way of processing withdrawals but most of them process withdrawals in batches or bundles so that they can save on transactions fees and not have multiple unconfirmed input (balances) in their hot wallets. I am not quite sure but they only push next batch of withdrawals when one of the previous batch get atleast one confirmation on the blockchain.

They might also manually verify few of the suspicious and big withdrawal request before processing them.

Yes, almost all the services (exchanges, gambling sites and even some web wallets) are following this strategy as far as I too have experienced. I noticed like requesting small amount and hitting my addy instantly but some what big requests take time to get processed but we can understand all these are just a precautionary measurements to prevent any possible attempts.

I believe no service provider can be having one single policy on withdrawal process as they cannot be sure about the capabilities of their user's malfunctioning.

[Zocadas]

Hadn't any of the exchangers Bittrex, Bitfinex, Cryptopia and Poloniex, that withdrew manually or with delay. But I had quite low transactions. Saw here in forum escpecially on poloniex, that some seemed to serve withdraws manually or with delay, but never experienced that myself. Maybe delays are also caused by new policies of account trading limits and IDs.

[Holla123]

I once had a smaller problem with with bittrex. Problem was after token sale the resulting ETH did not get added to wallet so obviously I could not withdraw but apart from that as soon as you have the verifications in place there was no major problems. No experience with binance it is somehow not possible for me to register there.

[Ararbermas]

So the question here is,they make this transaction manually?Means they transfer the coins from their personal wallet to my exodus wallet manually?

the answer is yes as i notice it some of the bitcoin exhanger make all the transaction process manually . I think they provide third person to do that things which is the person who can send coins to any wallet that requested some exchange .

[Oceat]

So the question here is,they make this transaction manually?Means they transfer the coins from their personal wallet to my exodus wallet manually?

the answer is yes as i notice it some of the bitcoin exhanger make all the transaction process manually . I think they provide third person to do that things which is the person who can send coins to any wallet that requested some exchange .

Even if those exchanges using their own bitcoin it doesn't mean that the process could go faster as you expected because it will have to go through at bitcoin miner before it finish your transaction. Especially if the traffic of users that withdrawing at the same day just like you, is increasing the block size which could get a little longer to process as per queue. As i have noticed that the delay of the transactions is a bit slower if you are sending bigger funds compared to some small amount of funds or maybe is it just me.

[moooonu]

I have used poloniex exchange many times whenever anyone wants to withdraw their coins from their a confirmation email is sent to the user's registered email and when they confirm the withdrawal process from the registered email the coins gets withdrew in next few minutes.

[hello_good_sir]

I am very curious how exchanges like bittrex,bitfinex,cryptopia and so on process withdraws of any coins.
Ex:I request 1 btc to withdraw from bitterx to my exodus wallet.
Now every time i observe it never happen instantly means after some time like 5 minutes after the request was places the actual transaction get into blockchain.

So the question here is,they make this transaction manually?Means they transfer the coins from their personal wallet to my exodus wallet manually?
If its not manual then why is the 5 minutes time gap?
If its automatic then how this works means this automatic withdraw from a wallet to another wallet with coding ,can anyone refer to some example codes?

Lastly I understand this is not a very easy question to ans so I hope some very advanced and very knowledgeable person like a hero or legendary member will help me here.

I'm guessing that they have to review your account security or whatever to first determine whether they should or should not send out the payment, then wait for a few more people to withdraw to consolidate the withdrawals into one transaction in order to save fees.

I could be dead wrong but, this seems to be the only way to explain why every time there are multiple outputs to withdrawal transactions, and also a possible explanation to why withdrawals are not always instant.