<p>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.</p>

CC BY-SA 3.0
2017-12-02T00:25:04.883Z
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
CC BY-SA 3.0
2017-12-02T02:10:48.273Z
Yes, that is correct.
Ava Chow
CC BY-SA 3.0
2017-12-01T23:03:01.160Z
2017-12-01T23:03:01.160Z
Ava Chow
<p>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.</p>

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

<blockchain><bitcoin-core><wallet><bitcoind><address>
How bitcoin exchange wallet system works?
Jignesh Chaudhary
# How bitcoin exchange wallet system works?

(Asked by: username_0 on 2017-12-01)

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

**Tags:** blockchain, bitcoin-core, wallet, bitcoind, address


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## 1 answers

### Answer by username_1 on 2017-12-01. Score: 1

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.

> **Comments:**
> **username_0**: 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?  
> **username_1**: Yes, that is correct.  

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