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Understanding On-Chain vs Off-Chain Transactions

Squared tracks and confirms transactions using public on-chain records. However, if both you and your customer use wallets from the same centralized service (like Binance or Coinbase), the transaction may happen off-chain. This means:

• The funds are simply reallocated within the service’s internal records
• No transaction is recorded on the blockchain
• Squared cannot verify or confirm the payment

Our recommendation: We strongly recommend using self-custodial wallets (like Trust Wallet, MetaMask, or Ledger) to ensure all transactions are properly recorded on-chain and can be verified by our system.

Squared Inc. cannot be held accountable for loss of funds due to off-chain transactions because of merchant’s use of centralized wallet service

💡 Tip: We use Trust Wallet internally because it’s easy to setup, supports many cryptocurrencies, and maintains proper on-chain records.

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How Wallet Assignment Works

When an invoice is created:

1. For USD-denominated invoices: We check which wallets you have configured. Customers will only see payment options for cryptocurrencies where you have corresponding wallets set up.
2. For crypto-denominated invoices: We automatically assign the respective wallet for that cryptocurrency. If you don’t have a wallet set up for that specific network or it’s in standby mode, the API will return an error.

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Managing Primary and Standby Wallets

You can configure multiple wallets for each cryptocurrency network, but only one can be active at a time.

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Wallet Statuses

• Primary: The active wallet that will receive payments for new invoices
• Standby: Reserve wallets that are stored but not currently receiving payments

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Changing Wallet Status

To switch to a new primary wallet:

1. Click on your current primary wallet
2. Select “Move to standby”
3. Add your new wallet, which will automatically become the primary

To promote a standby wallet:

1. Click on the standby wallet
2. Select “Promote to primary”
3. The previously primary wallet will automatically move to standby

⚠️ Important: Changes to wallet configuration only affect new invoices. Existing invoices will continue using the wallet that was assigned when they were created.

Need more help? Contact our support team at support@squaredinc.com

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Creating wallet