Binance is earning only $20,00 per day on transaction fees charge?? - page 3.

gentlemand

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Welt Am Draht

Quote from: Wysi on October 22, 2019, 12:14:39 PM

I have been a binance user from the day I learn about trading and trust me there is no other exchange which is more secure than binance and it's reliable as well.

Can you please tell us how you know this? Are you in charge of its security policies? Are you sleeping with CZ?

Everyone's secure until they're not. I remember a time when Mt Gox was described as 'too big to fail'. I'm sure they do their best. One day that may not be good enough. Plan accordingly.

deadsilent

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Quote from: o_e_l_e_o on October 22, 2019, 03:21:02 PM

Quote from: Wysi on October 22, 2019, 12:14:39 PM

I have been a binance user from the day I learn about trading and trust me there is no other exchange which is more secure than binance

Apart from when they were hacked for thousands of bitcoin earlier this year. Oh and when they were hacked for thousands of users' KYC documents, also earlier this year. Roll Eyes

Quote from: Nadziratel on October 22, 2019, 03:04:14 PM

You know that some of these fees are paid as mining expenses, right?

You can read the breakdown of the calculation here: https://beincrypto.com/binance-earns-more-than-20000-per-day-overcharging-on-transaction-fees/

Binance made 7 transactions in an hour, each transaction containing 36 outputs, paying a total of 0.01 BTC in mining fees. With their withdrawal fee of 0.0005, 0.0005*36*7 = 0.126 BTC charged to customers, leaving Binance with a profit of 0.125 BTC in a single hour. Multiply that by 24 to get 3 BTC per day. Now add in a similar calculation for all the different coins they list, and that $20k a day suddenly becomes much higher.

It's disgusting really, and Binance are probably far from being the worst offenders here. If you don't want to continue to be ripped off, then you should consider trading peer-to-peer on a DEX instead.

But don't forget that Binance covered the losses when the exchange was hacked. We rarely see that. Most hacked Exchange are mostly not operating anymore.
https://www.google.com/amp/s/www.cryptolinenews.com/exchange-news/the-binance-hack-leads-to-a-42-million-loss-in-btc-dont-worry-everything-is-covered/%3famp
That's why still many people are using their service. Because they know they are covered.

franky1

legendary

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binance charge $4 to so that people can take their money out of their service
i remember soo many people using paypals 20cent fee as a reason to tell others to switch to btc
i remember soo many people using western unions fee as a reason to tell others to switch to btc

heck id be pee'd off if an atm charged me anything for a withdrawal

i can kinda understand the principal. it kinda deters people withdrawing, thus keeps them trading a bit longer
but i know some businesses in the cryptosphere are getting a lil greedy

AjithBtc

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Binance earning $20K from transaction fees is not a big or small thing to take into controversy. From my understanding the primary purpose of the Binance exchange is trading of cryptocurrencies. Out of the trading there will be fee, which needs to be the earning of Binance. If the earning made is a big issue, he could've got house arrest.

boltz

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Maybe even more. Binance still has a lot of volume on the exchange and a lot of withdrawals of ethereum and bitcoin from where the big money are coming from so I wouldn't be surprised if BNB will rise just because of this fees as ETH withdrawal takes 0.01 ETH ...and its a lot , could be 10$ when ETH reaches 2k$. For me , this is another reason so start using DEX exchange when fees are low and gateways are perfect for low fees.

squatter

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STOP SNITCHIN'

Quote from: o_e_l_e_o on October 22, 2019, 03:21:02 PM

Quote from: Wysi on October 22, 2019, 12:14:39 PM

I have been a binance user from the day I learn about trading and trust me there is no other exchange which is more secure than binance

Apart from when they were hacked for thousands of bitcoin earlier this year. Oh and when they were hacked for thousands of users' KYC documents, also earlier this year. Roll Eyes

Quote from: Nadziratel on October 22, 2019, 03:04:14 PM

You know that some of these fees are paid as mining expenses, right?

You can read the breakdown of the calculation here: https://beincrypto.com/binance-earns-more-than-20000-per-day-overcharging-on-transaction-fees/

Binance made 7 transactions in an hour, each transaction containing 36 outputs, paying a total of 0.01 BTC in mining fees. With their withdrawal fee of 0.0005, 0.0005*36*7 = 0.126 BTC charged to customers, leaving Binance with a profit of 0.125 BTC in a single hour. Multiply that by 24 to get 3 BTC per day. Now add in a similar calculation for all the different coins they list, and that $20k a day suddenly becomes much higher.

Keep in mind, we need to account for their consolidation transactions, like this one. Last hour, they processed 26 such transactions and the hour before that they processed 47.

We should also account for the current low fee environment. At the height of the 2017 bull market, they were paying insane fees for their consolidation transactions. Over 1,000 satoshis per byte sometimes.

They may have been losing lots of money on transaction fees in that environment -- I'm not sure. Either way, it's worth noting that their costs to process deposits and withdrawals vary wildly depending on network conditions.

Shasha80

sr. member

Activity: 1876

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I am not concerned about transaction fees charges, as long as the exchanges provide quality services as well
guaranteed security. But if you have objections related to transaction fees, please look for another exchanges
with cheaper transaction fees. But the risk of each of them if a problem occurs. As long as I use binance exchanges
for trading, there is never a problem. Until now I was very satisfied with binance compared with other exchanges.

Kyraishi

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Quote from: s92225 on October 22, 2019, 12:07:31 PM

Yea... and just for context, 20k a day is a revenue of 7.3 million a year. That's nothing for any medium sized company much less for one of the largest crypto exchanges in the world.

You may not be happy that you aren't getting 1:1 trades, but i wouldn't exactly call this overcharging. If you can find a more trustworthy exchange with better exchange rates, then go there. If you find that hard to do, then they're not overcharging...

Any thoughts on OKEX / Huobi fees?

You mean the withdraw fee you pay when you want to withdraw funds to an external address and it's meant to cover transaction fees, right?

Companies shouldn't be making a lot of money from transaction fees, your essentially overcharging your client base in order to profit off transactions fees, which they shouldn't even make money off...

I'd assume a large amount of their profits from the exchange mostly come from the launchpad and the IEO's they hold, they charge huge fees and usually sell out on their platform.

o_e_l_e_o

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Quote from: Wysi on October 22, 2019, 12:14:39 PM

I have been a binance user from the day I learn about trading and trust me there is no other exchange which is more secure than binance

Apart from when they were hacked for thousands of bitcoin earlier this year. Oh and when they were hacked for thousands of users' KYC documents, also earlier this year. Roll Eyes

Quote from: Nadziratel on October 22, 2019, 03:04:14 PM

You know that some of these fees are paid as mining expenses, right?

You can read the breakdown of the calculation here: https://beincrypto.com/binance-earns-more-than-20000-per-day-overcharging-on-transaction-fees/

Binance made 7 transactions in an hour, each transaction containing 36 outputs, paying a total of 0.01 BTC in mining fees. With their withdrawal fee of 0.0005, 0.0005*36*7 = 0.126 BTC charged to customers, leaving Binance with a profit of 0.116 BTC in a single hour. Multiply that by 24 to get close to 3 BTC per day. Now add in a similar calculation for all the different coins they list, and that $20k a day suddenly becomes much higher.

It's disgusting really, and Binance are probably far from being the worst offenders here. If you don't want to continue to be ripped off, then you should consider trading peer-to-peer on a DEX instead.

zhekinsp

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Quote from: Theb on October 22, 2019, 02:56:07 PM

Quote from: zhekinsp on October 22, 2019, 02:14:44 PM

But don't forget BNB which got the total marketcap value of nearly 3 billion which is itself their profits right? They created this token from nowhere and made this into a huge profit so the transactions fees were just extra bonus.

Market cap of a cryptocurrency cannot be considered as a revenue for the project team itself since it's taking up the overall supply of the token multiplied to its current price. If I remembered it correctly 40% of the total supply of BNB was allocated to the team of Binance and not Binance as a company, meaning the employees are the ones sharing the profit and not the company itself which means its not a revenue for Binance. Additionally I know that they are burning the coins allocated to the team which I think they have done several times already and they will keep doing that until their own supply is all burned, this completely eliminates any rumors that they kept almost half of it just for profit.

But likely they made huge profits from the BNB token since the last year since it is one of the best doing crypto in terms of price so just added this to OP's statement of they are only making 7.2 million per year,they made lot more than what we think actually.

Nadziratel

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Quote from: s92225 on October 22, 2019, 12:07:31 PM

Yea... and just for context, 20k a day is a revenue of 7.3 million a year. That's nothing for any medium sized company much less for one of the largest crypto exchanges in the world.

You may not be happy that you aren't getting 1:1 trades, but i wouldn't exactly call this overcharging. If you can find a more trustworthy exchange with better exchange rates, then go there. If you find that hard to do, then they're not overcharging...

Any thoughts on OKEX / Huobi fees?

You know that some of these fees are paid as mining expenses, right?

I think we should stop calculating how much money Binance or any other exchange makes. They do not contribute to us or the market. Almost every day and everyone is talking about Binance because (like or not) the best exchange for the time being. Will things change in the future? Yeah, better, it'il just come out. But today, the best job, the most preferred and will earn the best money.

Theb

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Quote from: zhekinsp on October 22, 2019, 02:14:44 PM

But don't forget BNB which got the total marketcap value of nearly 3 billion which is itself their profits right? They created this token from nowhere and made this into a huge profit so the transactions fees were just extra bonus.

Market cap of a cryptocurrency cannot be considered as a revenue for the project team itself since it's taking up the overall supply of the token multiplied to its current price. If I remembered it correctly 40% of the total supply of BNB was allocated to the team of Binance and not Binance as a company, meaning the employees are the ones sharing the profit and not the company itself which means its not a revenue for Binance. Additionally I know that they are burning the coins allocated to the team which I think they have done several times already and they will keep doing that until their own supply is all burned, this completely eliminates any rumors that they kept almost half of it just for profit.

zhekinsp

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★777Coin.com★ Fun BTC Casino!

But don't forget BNB which got the total marketcap value of nearly 3 billion which is itself their profits right? They created this token from nowhere and made this into a huge profit so the transactions fees were just extra bonus.

dothebeats

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No one really knows how much trades are really happening within the platform so it may be way more than that but certainly not less than that. I'm not really against what they are earning since they are providing a platform with good liquidity and good security, plus the fact that a part of this goes to a fund to which they use to cover customers' funds should there be any hacks and whatnot affecting the platform and the users. This isn't overcharging IMO if you are really getting something good and something that you need off of a service. Most of the fees are justified, too, for any other exchanges as well.

audaciousbeing

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Quote from: s92225 on October 22, 2019, 12:07:31 PM

Yea... and just for context, 20k a day is a revenue of 7.3 million a year. That's nothing for any medium sized company much less for one of the largest crypto exchanges in the world.

You may not be happy that you aren't getting 1:1 trades, but i wouldn't exactly call this overcharging. If you can find a more trustworthy exchange with better exchange rates, then go there. If you find that hard to do, then they're not overcharging...

Any thoughts on OKEX / Huobi fees?

Your analogy is true really and a medium size company is even better off because for Binance the $20k is the revenue without even considering the cost of running the business which is really on the high side and the difficulty of getting finance for that nature of business would be another challenge. For me, the fee they generate does not even commensurate with the risk they take for people that over the years they have not betrayed the trust that have been bestowed upon them.

Wysi

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Quote from: s92225 on October 22, 2019, 12:07:31 PM

Yea... and just for context, 20k a day is a revenue of 7.3 million a year. That's nothing for any medium sized company much less for one of the largest crypto exchanges in the world.

You may not be happy that you aren't getting 1:1 trades, but i wouldn't exactly call this overcharging. If you can find a more trustworthy exchange with better exchange rates, then go there. If you find that hard to do, then they're not overcharging...

Any thoughts on OKEX / Huobi fees?

I have been a binance user from the day I learn about trading and trust me there is no other exchange which is more secure than binance and it's reliable as well. It doesn't matter about the transaction as far as it served the purpose.

No idea about the other two exchanges which you have listed but usually transaction fees are much higher on other exchanges compared to binance.

s92225

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Yea... and just for context, 20k a day is a revenue of 7.3 million a year. That's nothing for any medium sized company much less for one of the largest crypto exchanges in the world.

You may not be happy that you aren't getting 1:1 trades, but i wouldn't exactly call this overcharging. If you can find a more trustworthy exchange with better exchange rates, then go there. If you find that hard to do, then they're not overcharging...

Any thoughts on OKEX / Huobi fees?

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