By the end, you’ll be able to…
- Separate exchange records from on-chain holdings.
- Identify withdrawal and identity dependencies.
Three questions to carry into this lesson.
Trading and settlement are different
An exchange can match orders or record trades within its own system. That account activity is not necessarily a new Bitcoin transaction for every trade. An account balance may be a claim against the operator until a supported withdrawal reaches a destination under your control. A screenshot of trading activity cannot establish the state of the Bitcoin chain.
Read the service relationship
Before assessing any provider, identify its actual operator, custody model, eligibility, fees and withdrawal rules. Requirements can vary by jurisdiction and change over time. This course does not choose an exchange, tell you to bypass restrictions or advise a purchase. It teaches the questions needed to understand what a service does and where its promises begin.
Separate a service failure from a protocol failure
Imagine a platform pauses withdrawals while Bitcoin blocks continue to arrive. Those observations are compatible: the platform and the network are different systems. Conversely, a functioning login does not establish that withdrawals will succeed. In a comparison table, record the asset quantity, whether it is a provider claim, the available exit method and the evidence supporting each entry. Leave missing facts marked unknown rather than filling them with confidence from branding.
Practice on paper
A fictional exchange shows 50,000 sats after an internal purchase, but provides no transaction identifier. Does that prove deception or an on-chain receipt?
I’ve tried it — show the worked answer
Neither. Internal accounting may be normal for that service. You need the custody and withdrawal terms and evidence of any actual withdrawal before claiming on-chain settlement.
Want to explore with buttons and instant feedback? Try the practice lab ↗
Make a choice. Discover why.
Choose an answer and check the explanation. You can retry as often as you like. These are practice questions, not a test of mastery; answers are not saved or sent.
One idea to take with you
Identify the operator’s promise separately from Bitcoin’s rules.
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