How to Fix Crypto Exchange Deposit and Withdrawal Problems (Beware of Scams)

Did you deposit or withdraw coins from an exchange or personal wallet, only to run into a problem? Your deposit may not have gone through properly, or your withdrawal may not have been processed.

In this post, we'll look at why problems happen when depositing and withdrawing coins and how to deal with them. We'll also show you how to prevent the scams that can come up during this process and keep your precious funds safe.

Deposits and Withdrawals of Funds Withdrawn from an Exchange

Funds withdrawn from an exchange are usually transferred in the following 3 steps. First, the exchange receives the withdrawal request. Next, the exchange takes the address and memo entered by the user and sends the coin transaction to the blockchain network. Finally, blockchain network confirmation takes place, and lastly, the withdrawal (deposit) is completed at the destination exchange or personal wallet.

Having trouble depositing or withdrawing coins on an exchange? You need to pinpoint the problem according to the 3 steps I described above.

First, if the exchange hasn't created a transaction, contact the exchange or wait. Next, if a transaction was created but the funds haven't arrived yet, the minimum number of blockchain network confirmations may not have been reached. Give it plenty of time and wait about an hour. Finally, if there's nothing wrong with either of these, the deposit is being delayed, so contact the receiving platform.

Example:

• Bitpunk decides to withdraw 2 BTC from the Binance exchange to a personal wallet. After the request is confirmed, Binance creates a transaction.
• As soon as the transaction is created, Bitpunk can check the TxID (transaction ID) on a block explorer. At this point, the transaction is pending and the 2 BTC is temporarily frozen.
• If there are no problems, the transaction is confirmed on the network, and the BTC arrives in the wallet after the minimum of 2 confirmations.
• In this case Bitpunk had to wait for 2 network confirmations, but the number of confirmations required can vary depending on the wallet or exchange.
• If the network is more congested than usual, transaction processing may take longer than normal. Check the transaction status on a blockchain explorer.

Problems You Can Fix and Problems You Can't

There are a great many problems that can occur when sending coins from an exchange or personal wallet. Typical examples are listed below. Depending on the situation, some can be resolved, while unfortunately others cannot be resolved at all.

• You deposited to an exchange without entering a memo > Can be resolved by contacting the exchange (additional fee required)
• You selected the wrong chain > For a personal wallet, just add the network; for an exchange, contact them separately (recovery fee applies)
• You selected the wrong chain, but the exchange has already stated that recovery isn't possible (cannot be recovered)
• You deposited to the wrong address (cannot be resolved)
• Funds stolen because your personal seed phrase was leaked (cannot be resolved)

Beware of Scammers and Scams

One thing to be careful about: when a problem occurs, it's best not to share it in Telegram groups or KakaoTalk open chat rooms. If you do, you'll usually receive messages from people impersonating official admins, and you may fall victim to scams asking you to send a certain amount of coins or reveal your seed phrase in order to recover your funds or receive them faster.

A deposit or withdrawal problem can be stressful, but you should never naively trust people who readily offer to help. Try the methods I described above, and once your inquiry has been submitted, the best thing to do is wait patiently.

Wrapping Up

When sending coins, you can make mistakes such as entering the wrong address, leaving out the tag/memo, or selecting the wrong chain. Deposits and withdrawals may also be delayed on the exchange, or problems may occur on the blockchain network. In these cases, it's best to identify the problem step by step and try the right solution. And beware of scammers and scams. Never trust anyone who readily offers to help.