There are 3 different types of transactions:
Deposit/Incoming
Withdrawal/Outgoing
Trade
Deposit/Incoming
This type of transaction occurs when the balance of an asset in a wallet or exchange increases as a consequence of a transaction coming from another source.
Example:
my balance on Kraken is 0.5BTC
I decide to deposit 1BTC coming from a hard wallet in my Kraken account
my balance on Kraken will be 1.5BTC (initial balance 0.5BTC)
Withdrawal/Outgoing
This type of transaction occurs when the balance of an asset in a wallet or exchange decreases as a consequence of a transaction going towards another source.
Example:
my balance on Binance is 4ETH
I decide to withdraw 2ETH and move it on Coinbase
my balance on Binance will be 2ETH (initial balance 4ETH)
Trade
This type of transaction occurs when the balance of two assets in a wallet or exchange shifts (one increases - one decreases) as a consequence of a trade within the same source.
Example:
my balance on Kraken is 1BTC and 5ETH
I decide to trade 0.5BTC for 5ETH
my updated BTC balance will be 0.5 (initial 1)
my updated ETH balance will be 10 (initial 5)