1. Minimum Deposit Requirement - Avoid Losing Your Bitcoin
Golden Rule: Always ensure your
Bitcoin wallet deposit meets the minimum requirement of 0.0002 BTC for on-chain transfers, or your Bitcoin will be forfeited. Verify the details of a Bitcoin transaction and ensure that the send amount is 0.0002 BTC or more before sending a payment to your Bitcoin wallet.
Some exchanges and wallets deduct their fees from the transaction amount that you enter, resulting in a lower amount of Bitcoin being sent. Watch out for this. Also, avoid using platforms like
crypto.com or
coins.ph that charge excessively high fees to send Bitcoin. Use an exchange like
Coinbase,
Binance, or
Exchange Union and pay 10 times less than you would with crypto.com or coins.ph. But regardless of the method or platform you use, always verify that the amount of Bitcoin being sent to your Bitcoin wallet is 0.0002 BTC or more. Failure to comply will result in your Bitcoin being lost to you.
What happens to the forfeited Bitcoin?
All forfeited Bitcoin is allocated to the Vault (the internal wallet that receives Bitcoin from transaction fees and distributes Bitcoin to end users). Depending on the transaction amount and Bitcoin’s network fees, small amounts may or may not be recoverable due to Bitcoin’s design of processing transactions through UTXOs (or Unspent Transaction Outputs).
To explain in layman’s terms, consider a case where you have $5 and you must pay a transaction fee of $5 to send that $5 to someone else. That $5 would be completely useless and have no value when transacting. This same principle applies with the processing of Bitcoin’s UTXOs – small amounts can become unrecoverable if the amount is not sufficient to pay the fees required to transact on the Bitcoin network.
Consider another case where you receive 10 payments of $5 in wallet A and 1 payment of $50 in wallet B. Both wallets would have the same
balance of $50 but when the time comes to send a payment, the transaction fee for wallet A would be much more than the transaction fee for wallet B.
One key factor that determines the cost of a transaction fee is the size of the data required to write a transaction to the Bitcoin blockchain. Transactions that contain more data will naturally require higher transaction fees and if you wanted to send $40 from both wallets, 9 or 10 UTXOs would be required for wallet A, but only 1 UTXO would be required for wallet B; significantly decreasing the size and cost of the transaction.
Understanding the Bitcoin Wallet Deposit Minimum - Key Points to Remember
The minimum deposit requirement was established to prevent the Vault from incurring losses due to small transaction amounts that may never be recovered. The Vault is used specifically to generate returns for all wallet holders and should never incur losses due to user errors.
So always ensure that every
Bitcoin transaction sent to your wallet is at least 0.0002 BTC.
Sending 0.0001 BTC in one transaction followed by another payment of 0.0001 BTC will not satisfy the minimum deposit requirement and both payments will be lost. Always send a minimum of 0.0002 BTC or nothing at all.
Note that the minimum deposit requirement only applies to on-chain transactions (i.e. transactions processing on the Bitcoin network and written to the
Bitcoin blockchain).
This requirement does not apply when sending/receiving Bitcoin internally (between 2 wallets within the
DCS network).
If you have any questions regarding this topic or our Bitcoin wallets, please don’t hesitate to
contact us!
