What is a deposit address?¶

A deposit address is a blockchain address provided so that cryptocurrency can be sent into a wallet, exchange or other service.

Avoid the dangerous assumption¶

The dangerous assumption is that the person receiving the address directly controls its private key or that the address permanently identifies one account.

A non-custodial wallet may generate a deposit or receiving address controlled through the user’s own keys.

A custodial exchange may generate an address for a customer while the provider controls the keys and internal accounting.

Some services assign a unique address to each customer.

Others reuse addresses, require a memo or tag, or change the address over time.

Preserve the complete address, network, asset, memo or destination tag, account identifier and date it was displayed.

A valid-looking address on the wrong network can lead to loss or misinterpretation.

Ask the provider whether the address was assigned to a particular account at the relevant time and whether additional identifiers were required.

A blockchain transfer to the address may prove that the service received the asset on-chain. It may still remain pending or uncredited within the customer account.

It does not automatically prove that the customer’s internal account was credited or that the registered customer controlled the transaction.

Provider records are needed to connect the deposit to the internal account, status and later activity.

When reporting, distinguish the blockchain deposit address, provider custody, customer account and actual user.

Operational takeaway¶

Preserve the exact deposit address, network and any tag, then obtain provider records linking the on-chain receipt to the relevant internal account and user activity.