When does a trade actually settle?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 4 min
In short
A trade matched inside an exchange only moves balances in the exchange's own ledger. The asset moves on-chain only when you withdraw. Keeping that distinction clear makes it much easier to see that execution, crediting and on-chain arrival are three separate moments.
Key points
- An internal match only moves ledger balances
- The asset moves on-chain only on withdrawal
- Execution, crediting and arrival are separate moments
- Timing depends on the operator and the network
Definition
The sequence from a trade being agreed to the transfer of assets becoming final. Internal ledger processing at the exchange and on-chain settlement proceed on separate tracks.
When a buyer and seller match inside an exchange, what moves is a number in the exchange's own ledger. Nothing is written to a blockchain. That is precisely why internal trading is fast and cheap: the venue nets many users' balances internally.
The asset moves on-chain when you withdraw. Only then do you pay a network fee and wait for confirmations. Finality is determined by the network, so there is a limit to how much an operator can speed it up.
Deposits work the same way in reverse: the transfer arrives, reaches the required confirmation count, and the exchange then credits it before you can trade with it. Each stage adds waiting time, so plan for it if you intend to trade right after funding.
How long it takes depends on the asset, the operator and current congestion. For expected timings, the operator's own guidance is the reliable source.
Watch out for
- · An internal fill does not move anything on-chain until you withdraw
- · Several waiting stages sit between a deposit and being able to trade
- · Timings vary by asset, operator and congestion