Dust limit refers to the minimum amount of cryptocurrency that is considered too small to be practical for transactions. These tiny amounts are often referred to as “dust” due to their negligible value.When a wallet holds dust, it can be cumbersome for users. Transactions involving dust may incur fees that outweigh the value of the dust itself, making them inefficient to move or exchange. As a result, many exchanges or wallets set a dust limit, preventing users from making transactions below this threshold.For example, if a dust limit is set at 0.0001 BTC, any amount below this is considered dust and may not be usable for sending or trading. This limit helps maintain transaction efficiency and reduces network congestion by discouraging the transfer of minuscule amounts that do not contribute meaningfully to the overall economy.In summary, understanding the dust limit is important for managing wallets and conducting transactions effectively, especially for users who deal with small amounts of cryptocurrency.