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What is whitelist in crypto?

The word “Whitelist” is often mentioned in the context of token sales, initial coin offerings (ICOs), or other crypto-related events. The meaning of whitelist in cryptocurrency is quite different from what it means in our everyday use. While “whitelist” is simply the opposite of backlist in the conventional setting, the world of crypto takes the meaning a bit further. For short – a whitelist is a mechanism that allows certain individuals or addresses to have privileged access or participation in a specific crypto-related event or project.

This article explores whitelisting in crypto, discussing its meaning and other key points to note. 

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The-best-crypto-exchange-platform

What is a whitelist?

In cryptocurrency, a whitelist is simply a list of participants who have been approved to participate in a precise event. This includes an Initial Coin Offering (ICO) or NFT launch. Essentially, it gives a guarantee that only people who meet certain requirements can take part in an event. The organizers of the event create whitelists, which can include prerequisites like an account with a reasonable standing. A minimum investment amount and unique code or invitation are also some of the most included requirements.

Being whitelisted basically prioritizes you in a specific circumstance. For crypto investors who want to buy their digital tokens before going public in any offerings, there is always a whitelisting stage. Whitelisted users may receive unique perks such as bigger allocations, reduced pricing, or even stable gas fees.

Another whitelisting alternative in the world of crypto is associated with token withdrawal and crypto addresses. Essentially, the whitelist in this context is used to refer to a compilation of different cryptocurrency addresses that users regard to be very reliable. Users are only allowed to withdraw funds from the exchange to only addresses listed on the whitelist all thanks to this special security feature system. 

What happens when you are whitelisted?

Advantages of a CEX

Getting whitelisted in crypto is basically receiving access to take part in an IEO or an IDO (Initial DEX Offering). It could also be the presale of a cryptocurrency. During the process of whitelisting, you have to provide your personal information such as your name, valid email address, and agovernment-issued ID (in most situations). This information will be used to substantiate your identity and confirm that you are qualified to partake in the sale. Once you are whitelisted, you will get an email notification with proper instructions on how you can buy the crypto token during the sale.

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How do you get on a crypto whitelist? 

The precise steps involved during the crypto whitelisting process generally differ depending on the company executing the ICO or digital token sale. Nonetheless, we’ve provided what the steps typically look like below:

1. Sign up for the whitelist

Cryptocurrencies with low transaction fees

Signing up for the whitelist typically involves giving out your name and email address. Other basic information may also be requested.

2. Confirm your identity

This step typically involves providing any government-issued ID, such as your driver’s license or passport, and proof of address. The company conducting the ICO or digital token sale can also decide to conduct a background check or KYC (Know Your Customer) to confirm your identity.

3. Submit extra documentation (if needed) 

Depending on the host company involved and the jurisdiction, you could be mandated to submit extra documentation, such as your valid proof of income, a self-accreditation form, or a W-9 form.

4. Wait for whitelist approval

After presenting all of the mandatory information as well as the appropriate documentation, you need to wait for the company to check out your application and authorize you for their whitelist. Usually, you will be informed of your whitelist status through email.

5. Partake  in the ICO or token sale

You will be allowed to partake in token sales or ICO and buy tokens after being authorized for the whitelist. You’ll have to transfer cryptocurrency (generally Ether) directly from a whitelisted address to the ICO or token sale’s smart contract address.

6. Receive your tokens

After the digital token sale is duly completed, you will receivethe tokens you bought at the crypto address from which you’ve transferred the cryptocurrency.

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Whitelisting in crypto generally refers to making a list of authorized addresses or people allowed to partake in an Initial Coin Offering (ICO) or digital token sale. Essentially, it is used to stop fraud or ensure that there is compliance with crypto regulations. 

As the best crypto exchange app in Africa, Bitmama offers a secure marketplace for crypto enthusiasts. Perform activities like crypto exchange, crypto staking, and creating virtual dollar or crypto cards for online payment. 

Get started today by downloading the Bitmama app

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Emmanuel

Jul 19, 2023

4 mins read

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