Exchange Balance Minimum

Definition ∞ An exchange balance minimum is the smallest amount of a specific cryptocurrency that a user must hold in their account on a centralized exchange to avoid certain fees or to maintain an active account. This minimum balance requirement can also dictate eligibility for certain services or trading tiers. It is a policy set by the exchange to manage operational costs and user activity. Failing to meet this minimum can result in account restrictions.
Context ∞ News occasionally references exchange balance minimums when discussing changes in exchange policies or fee structures. These minimums can influence user behavior, particularly for smaller investors, and contribute to liquidity concentration on major platforms. Market participants consider these requirements when choosing where to store and trade their digital assets.