Topic: Why does the Exchange warn me about withdrawing ETH but not BTC/LTC/BCH? (Read 142 times)

It has to do with how APIs from ICOs and Exchanges track deposits from the blockchain. A lot of exchanges do not accept smart contracts.

Bittrex, Binance, Bitfinex, Coinexchange.io, Coinhako, Coinpayments, Cryptopia, Exodus, Kucoin,  Koinex, Ledger, Liqui, SimplexFX , Bithumb and Huobi all don't accept smart contracts.


ICOs often send the tokens to the senders address. Which in the case of a smart contract is the contract address - so your tokens will be lost.

With a NORMAL transaction the ETH is sent from the senders address via the blockchain to the receiver address.

With a SMART CONTRACT  a 0 ETH transaction with instructions (code) is sent to the CONTRACT address. The contract address then executes a internal transaction (code) to the receiver address.

BTC, LTC and BCH do not have that function. Smart contracts are unique to Ethereum and Ethereum based coins.

NORMAL



SMART CONTRACT

Ok, thank you both, and sorry for the delayed response. I now know a little more than I did before. But there are some things that still do not make sense to me.

I was already aware that ETH functioned differently to BTC in that ETH allowed people to engage in smart contracts.
However I thought it was also possible for ETH to function like BTC and be used for normal transactions.

I was not intending or trying to enter a smart contract or an ICO purchase. I was simply trying to send ETH from my Bitstamp exchange wallet to my CEX.IO wallet. I don't understand why an exchange like Bitstamp wouldn't allow users to do that, and I don't understand why an exchange like Bitstamp would even be bothering with smart contracts.


Well, I have now given that a try. I only sent a small amount of ETH (an amount I could afford to lose) from my Bitstamp address to my CEX.IO address, and now they've been lost. It seems Bitstamp forced me to send the ETH as if I were entering into a smart contract, and the CEX.IO address didn't like it. I see from searching online that other people have had exactly the same problem (and with the same exchanges).

Can anyone explain why Bitstamp would force people to send ETH as if they were entering into a smart contract? And are there any other coins where this sort of thing can happen? (E.g., is it easy enough to send Dash or Monero from one exchange to another, or do you have to be careful there too?)

Self explanatory. Google this warning and you will see what is that aboutt.

Most ICO's won't accept/support "investments" coming from an exchange. Some of them will actually credit the address which transaction was sent with the tokens. So the exchange address will receive the tokens - and not you. Sending from your private wallet solves everything, as you control the address private-keys.

You should read this:https://themerkle.com/top-3-reasons-not-to-use-an-exchange-wallet-to-participate-in-a-cryptocurrency-ico/

You can send ETH to the address you want. Just don't send them from the exchange to an ICO or smart contract.

The second warning is to prevent people from losing their tokens. When you send ETH to a smart contract with an input data of token creation, the tokens will be created and sent back to the wallet, from which the ETH came. So, you will lose your tokens in an exchange wallet. Moreover, you do not own the private key, and cannot retrieve your tokens.

The first warning has some links with what I just wrote. Furthermore, the smart contract will probably add some input data to your withdrawal transaction, so if the receiving party have problems with transaction with input datas, there is another problem.

If you withdraw to your own wallet address, which you own the private key, there is no problem at all.

Smart contracts do not exist with BTC, LTC or BCH, so the transactions are normally recorded without input datas, and token generation does not generally (almost never) occur from these cryptocurrencies.

I have an account with Bitstamp, and I wanted to send ETH to another exchange. When I went to withdraw ETH I received the following warning:

WARNING: Please make sure that the receiving party supports Ethereum transactions generated from smart contracts prior to initiating an ETH withdrawal.
[] I have read the warning

WARNING: Please do not withdraw directly to an ICO address. Always withdraw to your Ethereum private wallet first.
[] I have read the warning

I do not get any warnings about trying to withdraw BTC, LTC or BCH. So why do I get this warning when I am about to withdraw ETH? And can I not just send ETH to another exchange - do I really have to go through my private wallet first?