Binance Earns More Than $20,000 per Day Overcharging on Transaction Fees

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Quote from: BitcoinHunt3r on October 21, 2019, 02:41:50 PM

I think 0.0005 BTC still cheaper than most of exchanges. We can see minimum fee for withdrawal usually reach 0.001 BTC. And with that, Binance really can maintain their site very well, although get attacked they still can make sure they are reputable. With their services, i think it is worth if we pay that fee.

Yeah, .0005 is actually really cheap these days. If the cost to withdraw is anymore than that, I usually just trade for Doge then withdraw those to another exchange and withdraw the Bitcoins from there. This is what I usually end up having to do on Yobit. Yobit is completely scamming people with some of their fees to withdraw. .0012 BTC, 500 Doge, etc.,

Ferris419

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Quote from: el kaka22 on October 23, 2019, 01:35:39 AM

I can't believe people are defending binance and their shady business operational profits as "they have to make a profit". How can you not realize that they are making profit from the trading fee and that is their business model normally and whatever they are profiting (which is millions, literally) is their honest income they should be getting and they totally deserve.

However, when it comes to making money from peoples withdrawal under the guise of withdrawal fee is literally a profit they are making because there is no rival to them at that regard. Just because others charge more doesn't mean Binance should make 20k profit from just the excess of the fees. Any of us here would be celebrating like there is no tomorrow if we could make 20k a YEAR, these guys are making 20k PER DAY.

Binance is the world's largest crypto exchange, they have wallet service, DEX service, academy service and lots more, so, Binance deserve 20K USD, we are just some random people. So, 0.0005 BTC withdrawal fee is very normal for an exchange like Binance. What about oKex, Huobi, and other top exchanges? They ask the same amount. That's why I always withdraw in Ethereum, not by BTC. To convert from Ethereum to Bitcoin, sometimes I take Myetherwallet's service or bestchanger.

leea-1334

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surprise surprise,,, why is everyone in shock? this is what happens with any centralized exchange, you think they do not want to earn from fees from withdrawals? even localbitcoins charges you for DEPOSIT so you already pay for your input before you even do anything.

50k satoshi by the way is almost 5 dollars. That is too high for me. But everyone still loves binance right?

Ferris419

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This is not overcharged. Show me one exchange which asks lower than 0.0005 BTC per withdraw! All the good exchange takes this amount in BTC for withdrawing and 0.01 ETH for Ethereum. Recently, I am to use yobit exchange, and there BTC withdraws fee is 0.0012 BTC. Can you believe?

el kaka22

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I can't believe people are defending binance and their shady business operational profits as "they have to make a profit". How can you not realize that they are making profit from the trading fee and that is their business model normally and whatever they are profiting (which is millions, literally) is their honest income they should be getting and they totally deserve.

However, when it comes to making money from peoples withdrawal under the guise of withdrawal fee is literally a profit they are making because there is no rival to them at that regard. Just because others charge more doesn't mean Binance should make 20k profit from just the excess of the fee's. Any of us here would be celebrating like there is no tomorrow if we could make 20k a YEAR, these guys are making 20k PER DAY.

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Quote from: eaLiTy on October 21, 2019, 01:18:43 AM

Quote from: Yaunfitda on October 21, 2019, 01:04:14 AM

It is interesting to note as well, based on that article that Binance still uses Legacy wallet as input address that can really ballooned the fees by x amount.
Anyways, it still boils down to business + profit, at the end of the end, those exchanges really needs to find ways to generate and squeeze every penny out of us, crypto traders.

This is not a problem with Binance alone all of the exchanges have a very high withdrawal fees and 0.0005BTC is the standard fee and some exchanges even charge as high as 0.0015BTC HitBTC for example and CoinMex has the highest fees 0.002296BTC. There is no one protesting that and so is the reason they are continuing that old fees. If you are looking for free withdrawal fees go to Bitstamp and Coinbase Pro.

To know the complete list of withdrawal fees here is the exchanges and the fees they are charging.

It's not just binance, most crypto exchanges have higher fees than required to transfer BTC, a normal thing because "the fees" is one of the main income exchanges, we can't complain about it.
However, 0.0005 is cheaper than many other exchanges out there. Fortunate for people who trade in some exchanges that cost nothing to withdraw.

mersal

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Quote from: Yaunfitda on October 21, 2019, 01:04:14 AM

Binance Earns More Than $20,000 per Day Overcharging on Transaction Fees

Quote

If you are a regular Binance user, you are probably well aware that the cryptocurrency exchange charges a 0.0005 BTC withdrawal fee, irrespective of the size of the withdrawal or network fee requirements.

The 0.0005 BTC withdrawal fee is currently around 33 times higher than the average fee required to ensure transactions are mined on the next block.

https://beincrypto.com/binance-earns-more-than-20000-per-day-overcharging-on-transaction-fees/

It is interesting to note as well, based on that article that Binance still uses Legacy wallet as input address that can really ballooned the fees by x amount.

Anyways, it still boils down to business + profit, at the end of the end, those exchanges really needs to find ways to generate and squeeze every penny out of us, crypto traders.

IMO, Binance exchange got the very less withdrawal free compared to any other crypto exchange so blaming it for making huge profit it is not fair where they are making profits from their business and this is the good exchange we have for now compared to others so let them make some profits they are not here for free service.

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Quote from: Bttzed03 on October 21, 2019, 09:31:03 AM

Traders use the services provided by Binance and in return, Binance charges back. That's a normal practice in any business. If traders have a problem with that, they can always use another exchange or they can also ask help from regulators Grin

Quote from: crwth on October 21, 2019, 01:39:14 AM

The concern with the wallet is that if they were to change or update a new wallet for it, it's going to be hard. Imagine a large amount of BTC in the exchange itself, and moving and upgrading a wallet would be somewhat interrupting with their business. I don't have the experience with that, but I know it could expose the wallet or something, could there be an exploit when doing that and stealing the funds?

Other major exchanges have already switched to segwit since last year though. It's probably not the priority of Binance right now because they are focused on listing altcoins both on CEX and DEX plus their IEOs or IDOs.

I believe that they really really need to focus on the IEO they support, because their reputation depends on it. I believe that BNB has also risen in price precisely because IEO has become the best alternative to ico companies. But there is always a fly in the ointment, because there are companies that do not justify their trust. Perhaps this is because of the minimum professionalism of the team or because of the minimum demand for the project in society, As an example, the company Harmony.

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I think 0.0005 BTC still cheaper than most of exchanges. We can see minimum fee for withdrawal usually reach 0.001 BTC. And with that, Binance really can maintain their site very well, although get attacked they still can make sure they are reputable. With their services, i think it is worth if we pay that fee.

Vispilio

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On Binance, at least you can briefly convert your crypto holdings to an altcoin with much cheaper comissions and yet somewhat stable price and conduct a fast withdrawal (eg via TRX); other exchanges are admittedly more notorious for fees.

The big rip off in Binance was introduced by its new margin and futures products, where the liquidations have exponentially higher commissions and the maintenance margin is also way more expensive then competitors...

BigBoy89

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It's half-true.
At Binance, and any other exchange, fees are not only moving coins to your wallet. But to move it on deposit, to move balances in-between, etc.

Still, it's unreasonably high and as I wrote 2-3 weeks ago: Exchanges are making more profit from withdrawal fees than trading fees when you are trading small. But if we want to use Binance liquidity and stability, we have to accept those fees.

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Traders use the services provided by Binance and in return, Binance charges back. That's a normal practice in any business. If traders have a problem with that, they can always use another exchange or they can also ask help from regulators Grin

Quote from: crwth on October 21, 2019, 01:39:14 AM

The concern with the wallet is that if they were to change or update a new wallet for it, it's going to be hard. Imagine a large amount of BTC in the exchange itself, and moving and upgrading a wallet would be somewhat interrupting with their business. I don't have the experience with that, but I know it could expose the wallet or something, could there be an exploit when doing that and stealing the funds?

Other major exchanges have already switched to segwit since last year though. It's probably not the priority of Binance right now because they are focused on listing altcoins both on CEX and DEX plus their IEOs or IDOs.

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I don't see where is the problem considering it's the average fee on a lot of other exchanges and as someone said, we don't see people shouting about it. Coinbase too charges the same IIRC, when they increased the miners we have seen a few people shouting here and there for a few days but finally they stopped and I'm sure they still use it as of today.

I believe the reasons they overcharge the TXs fee is to not see people claiming "It takes too much time to withdraw from xyz!" whatever it can be from social networks, useless support tickets, ...

People have been praising Binance for too long now, I know a day they will realize the mistake.
I mean $20k x 30 days = over half a million dollars monthly donated generously by user Roll Eyes

Quote from: crwth on October 21, 2019, 01:39:14 AM

If you are running your exchange and that happens to be one of the most well-known exchanges in the industry, that's going to be profitable, right? Without considering the Trading Fees either. They are advantageous for sure.

The concern with the wallet is that if they were to change or update a new wallet for it, it's going to be hard. Imagine a large amount of BTC in the exchange itself, and moving and upgrading a wallet would be somewhat interrupting with their business. I don't have the experience with that, but I know it could expose the wallet or something, could there be an exploit when doing that and stealing the funds?

Upgrading their wallets isn't a real problem, don't forget that they store the coins in cold storage and only keep an amount for the trading activity.
How do you think other exchanges managed to upgrade to Segwit and/or bech32 format address?

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Quote from: BitHodler on October 21, 2019, 03:24:35 AM

Binance was crowned to be the best exchange to have ever existed last year, while people are now slowly shifting back and start to see flaws in the way they operate.... that's a good thing because it makes people not blindly trust them anymore.

If we look at the 0.0005BTC withdrawal fee, it's much better than BTC-Es 0.001BTC, and much better than Yobit's 0.0012BTC. I would actually be quite happy with 0.0005BTC IMHO, but people as always want to pay close to zero in fees....

I think this is the minimum fee at all major exchanges and this is the way for them to do business in this market so I will not object to this issue. In fact, that fee will not affect your profit much because if you have accepted to participate in crypto, you must have enough money to pay for those amounts. Personally, I am still using Binance because it is a very good exchange and the withdrawal is usually very fast so the fee of 0.0005 BTC absolutely does not affect me much.

There are currently very few exchanges that are cheap and you should accept this fee when participating. Of course, many investors don't like this fee but they can't do anything else.

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Quote from: magneto on October 21, 2019, 03:27:44 AM

If enough community goes to protest, there could potentially be changes made.

Meh. You sign up to a service with such withdrawal fees. It's not that they forced high withdrawal fees upon their users, unless they out of nothing increased their fees, then the story is different. In Binance's case, they haven't increased their fees so there really isn't much to complain about.

For the liquidity that they offer, and the wide variety of coin pairs, 0.0005BTC in fees isn't even that high. On top of that, whenever the network goes through some severe congestion again (which increases the fees for every user of Bitcoin), Binance got you covered with that 0.0005BTC fee.

Even when the on-chain fees jump above 0.0005BTC I'm sure they won't increase their fees immediately because the profits they generate from trading easily covers their withdrawal expenses.

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Quote from: joniboini on October 21, 2019, 03:22:08 AM

Binance name being used again by the media. I'd rather say crypto exchanges, in general, are overcharging on tx fees, but they go with Binance instead. Nice strategy for SEO.

Keywords tho HAHAHA!
Even binance has high fee traders still choose it over the others, even me, like why not if I can take profit easy because of their liquidity? That could be actually peanuts to some. And $20,000 a day isn't surprising, man that's a leading exchange site.

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indeed it has become very reasonable when the exchange place has a high trading volume and can provide trading comfort then the benefits of the exchange will also be more and more because there will be many who use the platform for trading.

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Have you guys ever withdrawn from Binance? They overpay miner fees by a hilarious margin to make sure users never wait more than a block. Like this one: https://www.blockchain.com/btc/tx/4b5a77f55d9fc27d5a5f44d8d97457f9b0d77920c311a5bfcbae6e1b4938895f

They just paid 95 satoshis per byte when transactions are getting confirmed in the next block for 1 satoshi per byte......

Quote from: JeromeTash on October 21, 2019, 01:30:30 AM

Maybe the excess transaction fees is to take care of the BTC dust in the different wallets.

That's part of it too. Customers make lots of small deposits which results in lots of inputs and much more expensive transactions. They might be pocketing some money from this, but it's way less than the OP is insinuating.

magneto

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Unfortunately as a user, you have to comply with whatever fees and rules that they put out.

They could easily argue that the fees goes towards maintaining the security of their cold and hot wallets, as well as paying for dust inputs that come in deposits. Of course, that is very unlikely to consist the entire 0.0005 BTC and at least part of it is definitely going towards Binance themselves, but it is likely their PR response if this issue was ever raised and discussed.

It's actually quite common practice as well among exchanges to do this, not just Binance. If enough community goes to protest, there could potentially be changes made.

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Binance was crowned to be the best exchange to have ever existed last year, while people are now slowly shifting back and start to see flaws in the way they operate.... that's a good thing because it makes people not blindly trust them anymore.

If we look at the 0.0005BTC withdrawal fee, it's much better than BTC-Es 0.001BTC, and much better than Yobit's 0.0012BTC. I would actually be quite happy with 0.0005BTC IMHO, but people as always want to pay close to zero in fees....

Topic: Binance Earns More Than $20,000 per Day Overcharging on Transaction Fees (Read 248 times)