Hi guys,
I'm newbie here. Somebody just inform that "Whitelisting" is good for Cryptocurrency Exchange.
Could somebody explain to me what is the "Whitelisting " mean?
Thanks,
The only whitelisting case i have seen so far on cryptocurrency exchanges is that of addresses. In this case you add a withdraw address on the withdraw section of a particular coin and save it
Whenever you are executing a withdrawal, you will not have to copy and paste the address and some exchanges may not ask for 2FA or SMS verification, so basically by whitelisting the address, you are confirming to the exchange it's your correct address you would like to use whenever you are withdrawing that coin and would not love to be asked to verify all the time.
Advantages:- No copying and pasting withdrawal addresses every time you want to withdraw which can be tedious
- Chances of withdrawing to a wrong address are very low due to error in copying the address or even due to address changing malware attacks.
- You will not be asked to verify every time you are performing a withdraw by an exchange
Disadvantages- Your transaction privacy may easily be compromised in case someone tries to trace your transactions. It will be very easy to follow your transaction trail since you will only be using one address from withdrawal transactions.
