Why Would a Blockchain Wallet Be Put On Hold and How to Deal with It
Introduction
One of the most frequent reasons a blockchain wallet can be frozen is for security reasons. As cases of hacking continue to rise, exchanges and wallet service providers are in most instances monitoring unusual activities. Whenever there are spikes in transfers, large withdrawals, or access from unfamiliar locations, it may temporarily freeze the wallet. This is like hitting the digital pause button to ensure security.
Understanding Holds on Blockchain Wallets
Holds can be placed on a cryptocurrency or a pending transaction during a bank transfer or where another issue with the payment or the account is identified. When a cryptocurrency sale is on hold during a bank transfer, the funds being transferred from your bank have not cleared in the original purchasing transaction. The temporary hold on the funds will be released upon the outstanding amount clearing.
It is important to note that not all sell transactions will be put on hold. A hold may not be released if the payment transferred from your bank does not clear or if another issue with the payment or the account is identified. This is a safety measure designed to protect users from unauthorized transactions or fraud.
3-Day Holding Period for Card Transactions
If you make a crypto purchase via card, a holding period of 3 days is applied to every card transaction where the amount is more than $1,300. Therefore, if you wish to withdraw your funds to a Decentralized Finance (DeFi) wallet or an external address, you must wait 3 days (72 hours) for the holding period to complete. This holding period is in place to protect you from fraud in case your debit or credit card was lost or stolen.
Security Measures and Holding Periods
Blockchain may apply a holding period on your recent crypto purchase for security purposes. The length of the holding period depends on a number of factors including your payment method, currency, and the presence of any abnormal activity or security concerns associated with your account. This measure is designed to enhance account security and prevent unauthorized transactions.
When a blockchain wallet or crypto transaction is put on hold, it is essential to remain patient and stay informed about any changes in the status of your funds. This period is a critical security measure and should not be disregarded. It is recommended to keep an eye on any notifications from the wallet or exchange service to ensure that the hold is resolved promptly.
Conclusion
In conclusion, understanding the reasons behind holds on blockchain wallets is crucial for crypto users to maintain control of their assets. Regular monitoring and staying informed about these security measures can help in ensuring the smooth operation of your cryptocurrency transactions.