I created the new 2 accounts with web3 like this. web3.eth.personal.newAccount(password)

When I send a ether to other address, I need to unlock first.

But other exchange sites like Binance doesn't request the password for withdraw. How can I understand it?

1 Answer 1


Short answer: Here you own your private key. On an exchange, it owns the private key.

What that does was create your own address on the ethereum chain. So the password you own is basically your encrypted key to that address. Not sure about Binance, but on exchanges you have account with the exchange and not directly on the chain. The exchange has the keys to the address on the chain. They generally keeps the coins or tokens together (or not) from all their users under different keys of their own. So, to withdraw, you just log in to exchange and when you withdraw, the exchange uses their password (private key) for one of their accounts. A previous related question on unlocking accounts, if it helps

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