How are tokens withdrawn if they are in cold storage?

When you deposit cryptocurrency into the LocalCoinSwap exchange, you are depositing directly into cold storage. LocalCoinSwap operates hot wallets for all the currencies traded. These hot wallets will only ever hold at maximum 5% of deposited funds. When the hot wallets run low we send some cryptocurrency out of cold storage and onto the hot wallets to top them up. All withdrawals from the LocalCoinSwap platform come from the hot wallets.

Your deposit address is for accounting purposes. The balance in your deposit address does not necessarily reflect your balance on the exchange.