Technical Definition
Address whitelisting
Address whitelisting is a security feature that allows crypto withdrawals only to addresses that have been approved in advance.
By Crypto University Editorial
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✦ Key Insight
A withdrawal whitelist can reduce the damage caused by a compromised account because an attacker may be unable to send funds to a new address immediately.
✕ Common Misconceptions
Whitelisting does not protect you if the approved address itself is wrong or compromised. Always verify addresses carefully before approving them.
Detailed Explanation
Many exchanges and custodial wallets let users create an approved list of withdrawal addresses. Once enabled, withdrawals to other addresses can be blocked. Some platforms add a waiting period before a newly approved address becomes usable.
In Practice
“You whitelist your hardware wallet address and configure your exchange so Bitcoin can only be withdrawn there.”