Definition
A spot wallet records assets allocated to buying and selling on a platform’s spot markets. Despite the name, it is usually a custodial account ledger rather than a separate blockchain wallet controlled by the user’s private keys. Some platforms provide a dedicated spot compartment, while others include spot balances in a unified account.
How It Works
When a spot buy executes, the platform deducts the spent quote asset and credits the purchased base asset, with fees applied under its rules. Open orders can reserve part of the balance. Transfers between account compartments may be needed before the same funds become available for another product or withdrawal.
Key Considerations
Total balance and available balance can differ because assets are committed to orders or restricted. Holding assets in a spot wallet does not automatically mean they are used as margin, earn yield, or can be withdrawn immediately. Check the account structure, asset status, and custody arrangement rather than inferring features from the word “wallet.”