Dust transactions refer to very small amounts of cryptocurrency in a single transaction that are generally considered too insignificant to be worth spending. These tiny amounts typically result from trading activities or fees incurred from sending cryptocurrency between wallets.
Because these small amounts may not cover transaction fees, they can be uneconomical to move or use. Financially, they are deemed as insignificant compared to the cost of the transaction itself.
Some platforms have policies relating to dust transactions, which may include setting minimum amounts for transactions in order to avoid cluttering up the network with these small value transactions.
In some cases, dust can accumulate in a wallet if left untouched for a long period, leading to clutter and potentially causing higher transaction fees in the future. It is recommended to periodically clean out dust from wallets to maintain their efficiency.
