Transaction Limits

Definition ∞ Transaction limits are predefined constraints on the number, size, or value of operations that can be processed within a specific timeframe or by a particular user or system. In cryptocurrency, these limits can apply to network block sizes, daily withdrawal amounts from exchanges, or the maximum value of a single transfer. They serve various purposes, including preventing network spam, managing risk, and complying with regulatory requirements. These restrictions are vital for system stability.
Context ∞ Transaction limits are frequently adjusted in response to network congestion, security concerns, or evolving regulatory landscapes, often becoming a subject of crypto news. Debates surrounding scalability solutions often center on increasing network transaction limits without compromising decentralization or security. Users often encounter these limits when interacting with centralized exchanges or specific decentralized applications.