In the crypto market, exchanges have their own trading rules. There will be differences among them in minimum trading lot definitions for each pair of crypto assets.
The term dust refers to small amounts of coin/token - below the minimum lot considered, which we ignore most of the time, as it is not shown in some exchanges.
For example - For the Binance pair ADA/BRL, there is a minimum trade amount of 0.01 ADA according to their trading rules.
If you try to close a position that is below the minimum amount defined by the exchange, you'll receive a notification letting you know that the amount is not enough. This can occur due to fees applied to executed orders, leaving the remaining balance too short for trading. In the example value of 0.00798 ADA/BRL, the amount is so small that it would not compensate for the transaction cost. For this type of closing, you must first increase your total position or check with the exchange if it allows alternatives such as converting part of these values to another currency.
Dust is also the term for a type of scanning hacker attack.
In this case, hackers attempt to bypass the privacy of some crypto assets by sending very small amounts to different wallets. Some portfolios have started to offer protection from this type of activity, warning users about which balances may be at risk and should not be used, thus reducing the chances of attackers tracking balances and transactions to specific addresses.
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