After performing a small transaction (often called a "Satoshi Test") to prove you control a Bitcoin address, here’s what to expect and how to troubleshoot if things don't go smoothly. This process is common when you want to enable withdrawals from an exchange to your self-custody wallet, like the BitBox.
What happens after the test transaction?
Once your small transaction receives enough confirmations on the Bitcoin blockchain, the receiving exchange or broker should detect it.
- Verification: They will typically mark your withdrawal address as verified.
- Withdrawals Enabled: You should then be able to proceed with withdrawals from their platform to this verified address.
The time this takes can vary. It depends on Bitcoin network congestion and the exchange's internal processing speed. Be patient, but if it takes too long (e.g., more than a few hours), check the points below.
Common issues and what to check
If your exchange doesn't confirm the address verification after a reasonable period, review these common points:
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Incorrect UTXO selected: This is a frequent issue.
- Did you send the transaction from the unspent transaction output (UTXO) associated with the exact address the exchange asked you to verify? Your BitBox software will show you which UTXOs (coins) are available to spend.
- Crucially, ensure you didn't mistakenly use a UTXO from a "change address" that isn't the one you intended to prove ownership of.
If you accidentally used a UTXO from a change address, it's not a major problem, but it can be confusing. Transactions involving change addresses don't appear directly in the BitBoxApp's main transaction history; these addresses are only visible and manageable through the 'Coin control' feature. If this happened, we recommend providing a standard receiving address (one of your main account addresses shown when you click "Receive") to your exchange and performing a new Satoshi Test, this time ensuring you send it from that standard address.
- Incorrect amount sent: Did you send the precise small amount specified by the exchange? Even a tiny difference can cause automated systems to miss the verification.
- Incorrect recipient address: Double-check that you sent the transaction to the correct address provided by the exchange for the test. This might be a specific verification address, not your usual deposit address on the exchange.
- Insufficient funds for fee: While less common for small test amounts, make sure the selected UTXO had enough value to cover both the test amount and the Bitcoin network transaction fee.
If you face issues, systematically re-check each of these elements. Pay closest attention to selecting the correct UTXO and sending the exact amount to the correct address.
Beyond the Satoshi Test: Other verification methods
It's good to know that the Satoshi Test is one method for proving address ownership. Other protocols, like AOPP (Address Ownership Proof Protocol), are being developed. These aim to offer more streamlined and potentially more privacy-preserving ways to prove control over an address, sometimes without needing an on-chain transaction. While adoption of these alternatives varies among exchanges, being aware of them helps understand the evolving landscape of self-custody user experience.