Is it a good idea to deposit directly into a service when withdrawing from another? I have two accounts on different Bitcoin broker services. I want to withdraw from one and deposit into the other. Is it necessary to first withdraw to my own Bitcoin wallet, or can I just withdraw from one service and deposit into the other directly, bypassing the wallet altogether? What are the advantages and disadvantages of either approach?
Many services explicitly warn users against this practice, including in their withdrawal terms clauses like &quot;you may only withdraw to an address which is controlled by you.&quot; This is likely to be due to the details of procedures used in the case of dispute resolution, but I've never seen any explicit justification for it.
The advantages of withdrawing directly are (1) saving the network fee associated with the transaction from your intermediate wallet to the receiving service; (2) overall the transaction would be faster.
The disadvantage is potentially violating the terms of services and the associated risk.
I admit to having taken this shortcut occasionally, but I would tend to avoid it for large transactions.