A withdrawal address is an address you send your funds to when making a crypto withdrawal. The address will be provided by the receiving party, such as a private wallet or other exchange.
Whitelisting a withdrawal address is the process of defining and limiting the addresses to which you can make withdrawals. You can find the option to set up a whitelist under Account > Security > Withdrawal Address Whitelist.
While whitelisting withdrawals to predefined addresses or disabling withdrawals for currencies is a good security improvement in itself, it will only be a true security improvement if you lock all addresses for all currencies.
Example: if your account is compromised by an attacker and you have only whitelisted a Bitcoin address but haven’t disabled other currencies, your funds could simply be converted to another currency and could be withdrawn in that other currency.
Important: If you wish to increase the level of security of your account by whitelisting addresses, it will only help if all addresses are locked. This is also part of the security enhancements that can be used to apply for Auto-Withdrawals.
If you simply want to remember the addresses you use, you can use the address book function.
How to set up a withdrawal address whitelist
To properly secure your account using the whitelisted address feature you will need to:
1. Click on Disable All. This will ensure that any tokens that you do not plan to make withdrawals will have them disabled.
2. Now, enable and fill in one or more addresses for each of the currencies you want to use.
3. On the bottom of this section, click on Update.
4. Confirm your changes:
5. Enter your 2FA code to proceed:
If you enter the correct token, you will see a pop-up message and receive an email.
6. On your email, click on Review Requested Change.
7. You will be redirected to your Security page and a pop-up with your new changes will appear. Select Confirm to proceed.
8. You are all set!
Withdrawal holds
Note that modifying an existing address whitelist for one or more currencies or turning on withdrawals for currencies that were previously disabled will trigger an automatic withdrawal hold of five days for all currencies.
Because these actions reduce your withdrawal security, no withdrawals will be processed during this 5-day period.
No five-day hold is applied when turning off withdrawals for currencies or adding whitelisted addresses to an enabled and non-whitelisted currency since these actions only increase withdrawal security.
If you have any inquiries, please feel free to contact Bitfinex Support. We are happy to help!