Test Transaction
A test transaction is a small transfer sent before a large one to confirm the address, network and wallet setup work as expected.
What Is a Test Transaction?
A test transaction sends a small amount first, waits for it to arrive, and only then sends the rest. It catches mistakes that cannot be undone later: a wrong address, the wrong network, a missing memo or tag, or a wallet that is not set up to show the asset.
It costs an extra network fee and some time, which is usually small next to the amount at risk. It does not prove the address is the intended one: an attacker's look-alike address receives a test payment just as well, so the full address still has to be verified on the hardware wallet screen.
After a test transaction, attackers sometimes send dust from look-alike addresses to poison the history, so the next send should not copy an address from that history.
A transaction fee is a cost paid to process transactions on a blockchain network. It compensates miners or validators for confirming and adding transactions to the blockchain.
Read full definitionReal-World Examples
Example 1: Before moving 2 BTC off an exchange, a user withdraws 0.001 BTC and checks that it shows up in the hardware wallet app.
Example 2: A test deposit of XRP without the destination tag goes missing, so the user contacts the exchange before sending the full amount.
Bitcoin (BTC) is the first decentralized cryptocurrency, launched in 2009. It uses blockchain technology for secure, peer-to-peer digital transactions without intermediaries.
Read full definitionA crypto exchange is a company that lets users buy, sell and trade crypto and, by default, holds the keys to their coins.
Read full definitionThe XRP Ledger is a decentralized, open-source blockchain designed for fast, low-cost global payments using the XRP cryptocurrency.
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