A token approval lets a smart contract spend a specified amount of a token from your wallet. Approvals are useful for decentralised applications, but they deserve the same attention as a payment instruction because the permission can outlive the action that created it.
Read the permission scope
Before approving, check the contract, the token, the allowance amount, and whether the application is one you intended to use. An unlimited allowance can be convenient, but it increases the importance of verifying the contract and reviewing permissions over time.
Practical approval habits
- Use limited approvals when the application supports them.
- Keep long-term holdings in a wallet separate from routine application use.
- Review and revoke unused approvals periodically.
- Protect the private key that ultimately controls every approval.
This article is for general information only and is not investment, legal, or financial advice.