$60+ in fees for a single withdraw. Could exchanges survive this?

Dutchyyy

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Quote from: slaman29 on February 05, 2021, 05:09:02 AM

I think people are getting smart now. They're exchanging into USDT or some other stablecoins and then moving it out for a few dollars, then exchanging back. They still lose on fees but it's faster and not as painful as $50 and still waiting for confirmations.

I think Layer 2 is also going to be more popular in future.

I'm doing such transfers because USDT TRC-20 withdrawals are free or very cheap. But there are still exchanges that support only ERC-20 and Omni Tether deposit/withdraws for some strange reasons. Example: Kraken & Bittrex.

I also think that Layer 2 will gain popularity and solve the problem with fees.

I am locking the topic now.

7788bitcoin

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Quote from: Dutchyyy on February 04, 2021, 06:25:57 PM

For how long do you think exchanges could continue and survive this way before they start blocking or impose cosmic fees over ERC-20 withdraws?

If you could tell which exchange is providing the withdrawal fees rather than putting that burden to the end user, if that is true then that model will not last forever. The withdrawal fees are high if you are withdrawing ERC 20 tokens and hence i am not moving the coins from exchanges even though i know the risks involved as i do not want to pay high fees, i expected the ETH 2.0 upgrade will sort the issue and now i am thinking when that change would take place.

doctor877

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this high fees is getting out of hands on the ETH chain, this is only pushing people to find an alternative because this high fees is not sustainable. spending 20$ for a 50$ worth token beats one of the main purpose of why people should choose cryptocurrency over fiat.

JooBra

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Quote from: Vod on February 04, 2021, 11:13:45 PM

Quote from: Dutchyyy on February 04, 2021, 06:25:57 PM

For how long do you think exchanges could continue and survive this way before they start blocking or impose cosmic fees over ERC-20 withdraws?

There are many private blockchains that offer cheaper services. Every time you make a Ethereum trade, you are supporting everyone in the world. You should pay fees more equal to the actual cost within your peer/interest group, a much smaller domain.

Yeah there are coins that are not eth20 based and you have low fee with them. I never transfer money in ETH atm I use Cardano for that. Fees are big now and for ETH2.0 should fix that but that wont happen soon.

passwordnow

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Quote from: Inagame on February 04, 2021, 08:31:12 PM

Exchanges can make some deal to work together and use internal transfers or alternative chains to reduce fees.
Some of them have their own chains like Binance, Huobi and others.

That's possible, only if they agree to do that. But they are all competing to each other so I doubt it that an agreement for most of the exchanges will create an internal transfer.
But if this happens, every trader can easily transfer it with ease and have it for free. It could be a dream come true if someday these exchanges grants what you're thinking.

sheenshane

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An exchange will always be adjusted for their withdrawal fees to the recommend amount of transaction fees in the networks, so they are always safe for the fees and they will survive even there are high fees. The problem is us(the user), there's nothing we can is to accept those consequences of facing high fee upon having withdrawal. If your local exchange doesn't support altcoin that has a low fee upon withdrawal, you must find a way to lower the cost of the fee.

In my country, we have a local wallet that supports XRP and convert to fiat, we can cut the high fees from exchange to my local wallet using XRP. So, if I have Ethereum or Bitcoin on exchnage which is we know that these two coins are having high fees, I trade to XRP and then withdraw and convert to fiat.

sana54210

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Quote from: heyhat on February 05, 2021, 06:08:30 AM

Quote from: slaman29 on February 05, 2021, 05:09:02 AM

I think people are getting smart now. They're exchanging into USDT or some other stablecoins and then moving it out for a few dollars, then exchanging back. They still lose on fees but it's faster and not as painful as $50 and still waiting for confirmations.
I think Layer 2 is also going to be more popular in future.

Transaction with USDT TRC20 is free btw. Tron network covers fees.

Tron could be one of the cheapest and fastest blockchains available right now, obviously if it had as much transactions as etheruem, which is probably 100x more moves than tron could ever reached at its peak, on a regular daily basis, but it still would be cheaper for sure without a doubt. I get that Tron would be ideal and everyone should use it, but the fact is that it doesn't have the projects that other places have makes it simply known that people are not fine with using Tron because there is nothing to use it on neither.

In ethereum we have thousands of dapps and defi projects that makes ETH very attractive, people do not aim to actually have ETH, they aim at going for the things ETH provide, but that means you have to deal with ETH as well. Tron doesn't have that which makes it harder for people to buy Tron since there isn't a reason like that for it.

Slow death

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days ago i was talking to someone about this subject and i was telling the person that i could only withdraw LTC in binance because the bitcon withdrawal fees of 0.00050 = $18 is being a big headache

imagine if the person does not have big capital to do day trade and manages to make a profit of $25 per week, if the person withdraws in bitcoin the person will only receive $7 and will not be able to withdraw $7 to the bank, and this situation is unsustainable. exchanges have to come up with a reasonable solution. I always have to use LTC to withdraw due to high fees when withdrawing in bitcoin

Renampun

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I have a pending withdrawal due to a fee problem...
With the increasing price of ethereum, the value of the gas fee will automatically increase, sad to see that the value of the token I want to withdraw is $ 50 but has to pay a gas fee of $ 40.

Quote from: heyhat on February 05, 2021, 06:08:30 AM

Quote from: slaman29 on February 05, 2021, 05:09:02 AM

I think people are getting smart now. They're exchanging into USDT or some other stablecoins and then moving it out for a few dollars, then exchanging back. They still lose on fees but it's faster and not as painful as $50 and still waiting for confirmations.

I think Layer 2 is also going to be more popular in future.

Transaction with USDT TRC20 is free btw. Tron network covers fees.

yap, Tron is the best choice right now.

jrrsparkles

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Quote from: carlisle1 on February 05, 2021, 02:20:31 AM

Quote from: jrrsparkles on February 05, 2021, 12:41:42 AM

This situation is not going to be permanent like this,

Yeah it won't but the problem is the effect on us? in which needed a small transaction from time to time .

If people care about that uncertain hikes on the useless tokens then they have no other choice to be honest so either accept or just boycott it. With DEXs the condition of paying fee is getting more insane with the increase of ethereum's price.

heyhat

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fallenangel

Quote from: slaman29 on February 05, 2021, 05:09:02 AM

I think people are getting smart now. They're exchanging into USDT or some other stablecoins and then moving it out for a few dollars, then exchanging back. They still lose on fees but it's faster and not as painful as $50 and still waiting for confirmations.

I think Layer 2 is also going to be more popular in future.

Transaction with USDT TRC20 is free btw. Tron network covers fees.

slaman29

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I think people are getting smart now. They're exchanging into USDT or some other stablecoins and then moving it out for a few dollars, then exchanging back. They still lose on fees but it's faster and not as painful as $50 and still waiting for confirmations.

I think Layer 2 is also going to be more popular in future.

carlisle1

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Quote from: Dutchyyy on February 04, 2021, 06:25:57 PM

A few moments ago, I had a withdraw from one exchange to another.

I paid ~90c in fees. The sender (Exchange 1) paid ~$40 in fees and >400 gas. Then Exchange 2 (auto) moved the coins through a contract for another $20 in fees.

This transaction costs $60+ in fees.

While some of you may goat that exchanges deserve it, this is not sustainable for a long period. And in the end, the user is always paying the expenses.

For how long do you think exchanges could continue and survive this way before they start blocking or impose cosmic fees over ERC-20 withdraws?

I can feel you here mate, few days ago i have a same withdrawal and i only wanted to withdraw 300$ and the fee is almost similar like you , i spent almost 85$ just to get my funds.

the thing is Can we survive this ?

Quote from: jrrsparkles on February 05, 2021, 12:41:42 AM

This situation is not going to be permanent like this,

Yeah it won't but the problem is the effect on us? in which needed a small transaction from time to time .

heyhat

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fallenangel

Quote from: Bttzed03 on February 05, 2021, 12:28:55 AM

May we know if this is also a transaction from an exchange (CEX/DEX)? This is too expensive if it's just P2P.

Sorry, I just realized that my case was a bit out of topic. It was from DEX, uniswap.

jrrsparkles

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This situation is not going to be permanent like this, maybe for few months people will be facing the fee issues but once the bullish season becomes normal the number of transaction will reduce and also the transaction cost. In that time you have only two choices to trade ethereum based tokens which are either sell it in p2p mode or just simply move to different chain like tron.

Bttzed03

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Quote from: Dutchyyy on February 04, 2021, 06:25:57 PM

~ And in the end, the user is always paying the expenses.

Users pay for convenience when they are using exchanges and exchanges try to deliver by making sure users get their transaction/s done without any delay.

You can do the same tricks traders use when moving their funds from one exchange to another and that's selling their coin to another with cheaper fees (ERC-20 token to Doge/Trx/Ltc for example) then convert it back.

Another trick you can do is compare the fees the exchange is asking to the recommended fees by mempool explorers. I've done this in the case of bitcoin. I noticed that the transaction fee for slow withdrawal is higher than the fast withdrawal suggested by mempool.space.

Quote from: heyhat on February 04, 2021, 10:02:56 PM

Last night I paid $90 for gas fees. In many countries, the subsistence level is lower than $90 lol. I hate ETH. I hope soon, ADA, AVAX, HBAR, ZIL or DOT will replace ETH.

May we know if this is also a transaction from an exchange (CEX/DEX)? This is too expensive if it's just P2P.

Vod

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Quote from: Dutchyyy on February 04, 2021, 06:25:57 PM

For how long do you think exchanges could continue and survive this way before they start blocking or impose cosmic fees over ERC-20 withdraws?

There are many private blockchains that offer cheaper services. Every time you make a Ethereum trade, you are supporting everyone in the world. You should pay fees more equal to the actual cost within your peer/interest group, a much smaller domain.

heyhat

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fallenangel

Last night I paid $90 for gas fees. In many countries, the subsistence level is lower than $90 lol. I hate ETH. I hope soon, ADA, AVAX, HBAR, ZIL or DOT will replace ETH.

tbct_mt2

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Quote from: Dutchyyy on February 04, 2021, 06:25:57 PM

A few moments ago, I had a withdraw from one exchange to another.

I paid ~90c in fees. The sender (Exchange 1) paid ~$40 in fees and >400 gas. Then Exchange 2 (auto) moved the coins through a contract for another $20 in fees.

This transaction costs $60+ in fees.

It is known with average transaction fee on ERC20 chain, and especially not strange if your transaction includes a complicated smart contract.

Quote

While some of you may goat that exchanges deserve it, this is not sustainable for a long period. And in the end, the user is always paying the expenses.

Exchanges can charge you high fees, higher than what is necessary if you proceed your transactions from the wallet you can control gas and fee. Unfortunately, you can not blame all things on exchanges as transaction fees depend on the blockchain network. It can be high or low, at different time.

If you don't have instant demand to move your tokens, coins, let's choose the time when average fee is cheap and move yours. This in turn can result in another risks, store your coins or tokens on exchanges for longer. And you have consider risk and benefit to make decisions.

At the moment, average transaction has gas price at 186 Gwei, that is higher than normal gas price about 5 to 6 times.
https://ethgasstation.info/calculatorTxV.php

Inagame

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Exchanges can make some deal to work together and use internal transfers or alternative chains to reduce fees.
Some of them have their own chains like Binance, Huobi and others.

Topic: $60+ in fees for a single withdraw. Could exchanges survive this? (Read 154 times)