Exchange Deposits

Definition ∞ Exchange deposits refer to the act of transferring digital assets from an external wallet or another exchange into an account held on a centralized cryptocurrency exchange. This action typically precedes trading, staking, or other financial activities offered by the exchange platform. Users must send assets to a specific deposit address provided by the exchange to ensure correct allocation. The security and speed of exchange deposits are critical for market participants.
Context ∞ Exchange deposits are a frequent topic in cryptocurrency news, particularly concerning market liquidity, regulatory compliance, and security incidents. Significant deposit flows can indicate investor sentiment or anticipation of market events. Exchanges prioritize secure and efficient deposit mechanisms to maintain user trust and operational integrity. Regulatory bodies often scrutinize deposit procedures for anti-money laundering and know-your-customer compliance.