What are the common reasons for an authorization hold on a cryptocurrency purchase?

3 answers

• Dec 25, 2021 · 3 years ago
  An authorization hold on a cryptocurrency purchase is a temporary hold placed on your funds to ensure that the transaction is legitimate and that you have sufficient funds to cover the purchase. It is a security measure implemented by cryptocurrency exchanges to protect both the buyer and the seller. The hold is typically released once the transaction is confirmed and the funds are transferred. This process helps prevent fraudulent transactions and unauthorized use of funds. So, if you notice an authorization hold on your cryptocurrency purchase, don't worry, it's just a standard security measure.
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• Dec 25, 2021 · 3 years ago
  Cryptocurrency purchases may have an authorization hold for various reasons. One common reason is to prevent chargebacks or fraudulent transactions. By placing a temporary hold on the funds, the exchange can verify the transaction and ensure that the buyer has sufficient funds. Another reason is to comply with anti-money laundering (AML) and know your customer (KYC) regulations. Exchanges are required to verify the identity of their users and ensure that the funds being used for the purchase are not associated with illegal activities. Additionally, authorization holds can also be triggered by technical issues or delays in the blockchain network. These holds are usually resolved once the technical issues are resolved or the network congestion subsides.
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• Dec 25, 2021 · 3 years ago
  At BYDFi, we understand the importance of security in the cryptocurrency industry. That's why we implement authorization holds on cryptocurrency purchases. These holds are a standard practice to protect our users and prevent fraudulent transactions. When you see an authorization hold on your cryptocurrency purchase, it means that we are verifying the transaction and ensuring that you have sufficient funds. Once the transaction is confirmed, the hold will be released, and the funds will be transferred to the recipient. If you have any concerns or questions about authorization holds, feel free to reach out to our customer support team. We're here to help!
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