When operating in financial markets, there are three main types of transactions you can execute:
Deposit/Incoming
Withdrawal/Outgoing
Trade
The same principle can be applied to the types of transactions you can have in your CryptoBooks account.
Read this quick article to understand the differences between them.
Deposit / Incoming
This type of transaction takes place when the balance of an asset in a wallet or exchange increases due to funds received from another source.
Example:
You currently hold 0.5 BTC on Kraken.
You transfer 1 BTC from your hardware wallet to your Kraken account.
Your new Kraken balance will be 1.5 BTC (0.5 BTC initial balance + 1 BTC deposit).
Withdrawal / Outgoing
This type of transaction occurs when the balance of an asset in a wallet or exchange decreases due to a transaction sent to another destination.
Example:
You have 4 ETH in your Binance account.
You withdraw 2 ETH and transfer it to your Coinbase account.
Your new Binance balance will be 2 ETH (starting from 4 ETH, minus the 2 ETH withdrawal).
Trade
This type of transaction occurs when the balance of two assets in a wallet or exchange changes—one increases while the other decreases—due to a trade within the same platform.
Example:
You have 1 BTC and 5 ETH in your Kraken account.
You trade 0.5 BTC for 5 ETH.
Your updated balances will be:
BTC: 0.5 (down from 1)
ETH: 10 (up from 5)