Topic: Bitcoin withdrawal fee is damn high in exchanges! - page 5. (Read 796 times)
What else can we expect? Exchange is a business establishment. They establish it to make money, so they will definitely charge every action their client made on their platforms such as trading fees, and withdrawal fees. And if the situation allows them, they wanted to get as much profit as they can from these charges. Exchange is not a charity that will let us use their service free of charge. So it is either we deal with it or stop using their service.
The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?
As a Bitcoin-only exchange which is offering very competitive trading fees [0% maker; 0.25% taker] while having to comply with local regulations in Vietnam to offer a consistent and stable service to our clients, the revenue has to be generated somewhere in order to keep providing such a service.
While you might be able to buy also in the OTC markets, you most likely will end up paying a higher spread than if trading directly on an exchange platform.
Moreover: If the exchange has a proper cold storage set up, the withdrawal fee has to basically cover for three transactions:
- Deposits moved into Cold Storage
- Cold Storage transfers into Hot Wallet
- User withdrawal from Hot Wallet
...without a Cold Storage, you can reduce this from 3 to 1tx the exchange has to cover... - but this comes at (naturally) a much higher risk, that the exchange might go bust if things go the wrong way.
Ultimately: You get what you pay for.
Operating a service such as this costs significant $ and if one is cutting a few corners too much in order to beat the competition by another basis point or two, the users will ultimately pay the price for it.
The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?
The reason is simple, exchanges aren't meant to be used as wallet. High fees is actually good IMO. It acts as a barrier for those lazy asses who think it is good idea to keep bitcoins on exchanges and send whenever needed. But it can be disastrous.
Also $9-12 you see is not network fees. It is arbitrary fees exchange charges from you. Exchanges rather make batch transactions combining various withdrawal requests in a single transaction. Not a while ago if I remember correctly, Bittrex used to offer free of charge withdrawals. However, with time they raised fees to as high as 0.002 BTC.
This isn't Bitcoin's fault, there's absolutely no need to pay such high amounts for network fees, and exchanges actually don't do that, they keep the difference between their withdrawal fee and actual network fee for themselves. In 2016 withdrawal fees used to be lower, but then they skyrocketed in the end of 2017 during the heights of the bubble, and after that exchanges "forgot" to lower their fees, since they probably noticed that people pay it anyway. They also incentivize people to keep their coins on exchange, so they would be more likely to trade and thus pay their trading fees and make profit for them.
Most of the exchanges use 0.0005 BTC as withdrawal fee, I only know about Yobit which charge 0.0012 BTX per withdrawal.
0.0005 BTC is not a big deal I think. However, you can use lihhtning network too in the future, at the moment, there's no top reputed exchange using lightning network.
0.0005 BTC is not a big deal I think. However, you can use lihhtning network too in the future, at the moment, there's no top reputed exchange using lightning network.
Centralized exchanges won't survive long without these fees.
That might be true to an extent, but I'd rather pay a higher trade fee than a huge withdrawal one, especially for bitcoin. Many withdrawal fees for altcoins are much lower, but usually that's not what I want to withdraw from an exchange. Having said that, not all exchanges are equal in their fees. Kucoin currently charges 40k sats to withdraw bitcoin, and while that might not be outrageous, it's still over $4. Contrast that to Yobit, which I think is 120k sats--that's a ripoff IMO.
This is a problem that we face everyday: leave the money on exchanges to avoid fees but with some risk, or withdraw to our wallets to keep our funds safe but paying high fees?
I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...
I think this is totally possible
I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...
I think this is totally possible
If you want to trade, and withdraw your coins very often, then you have to pay a price for it. As mentioned above, it is not just a fee for sending coins via blockchain, but also a fee for using the service, nobody works for free today, why expect crypto exchange to be someone who will give up profits for the benefit of their users?
I believe that each service has its price, but also that some have high fees. Perhaps superior service entails a higher price, as with everything else we pay or buy. You can buy a new car for, say, $10 000, but you can also buy it for $100 000.
Is that chart updated in "real time" or close to it.
As far as I know, but I'm not exactly an authority on centralized exchanges - I've only ever used one (without any form of KYC, using a throwaway email address and over Tor), and the last time I used it was around 2 years ago. I've never used a centralized exchange for fiat. My primary reason for not using them is that I have no desire to complete KYC anywhere ever for any reason, but when I keep seeing them charging ludicrous fees, being hacked, locking accounts, and other such shady behavior, I'm always very glad that I don't.Kucoin currently charges 40k sats to withdraw bitcoin, and while that might not be outrageous, it's still over $4. Contrast that to Yobit, which I think is 120k sats--that's a ripoff IMO.
It's ridiculous when you think about it. When you deposit to an exchange, they will need to make maybe one or two consolidation transactions to move your deposit from the address they gave you to their central hot wallet, and then when you withdraw, that's one more transaction. All the transaction they make are batched, and the consolidation ones can be made with a tiny fee because they are non-urgent. All-in-all, it'll be costing them <1000 sats per deposit to process. To charge 40-100x that is ridiculous. 
This is a problem that we face everyday: leave the money on exchanges to avoid fees but with some risk, or withdraw to our wallets to keep our funds safe but paying high fees?
I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...
I think this is totally possible
I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...
I think this is totally possible
If you want to trade, and withdraw your coins very often, then you have to pay a price for it. As mentioned above, it is not just a fee for sending coins via blockchain, but also a fee for using the service, nobody works for free today, why expect crypto exchange to be someone who will give up profits for the benefit of their users?
I believe that each service has its price, but also that some have high fees. Perhaps superior service entails a higher price, as with everything else we pay or buy. You can buy a new car for, say, $10 000, but you can also buy it for $100 000.
Centralized exchanges won't survive long without these fees.
That might be true to an extent, but I'd rather pay a higher trade fee than a huge withdrawal one, especially for bitcoin. Many withdrawal fees for altcoins are much lower, but usually that's not what I want to withdraw from an exchange. Having said that, not all exchanges are equal in their fees. Kucoin currently charges 40k sats to withdraw bitcoin, and while that might not be outrageous, it's still over $4. Contrast that to Yobit, which I think is 120k sats--that's a ripoff IMO.
I know this is not applicable to everyone, but I cope with high fees by withdrawing bigger amounts in a less frequent manner
Obviously so they can earn their money. I am not sure why but there are these sites where you could choose what kind of transaction you want, whether you want a fast one if you are in a hurry or a slow one that still waits for other transactions to complete. If that is a higher fee, that means that those transactions are fast yet, it is expensive.
This is a problem that we face everyday: leave the money on exchanges to avoid fees but with some risk, or withdraw to our wallets to keep our funds safe but paying high fees?
I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...
I think this is totally possible
I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...
I think this is totally possible
What are you trying to trade? BTC and fiat or BTC or altcoins? Although centralized exchanges are awful for this kind of thing, even $12 for a withdrawal is a bit much for them. Take a look at this list: https://withdrawalfees.com/coins/bitcoin. There are plenty of exchanges which will let you withdraw for free or only a couple of dollars. All they will ask in return is to know everything about you and for you to upload details of your entire life, copies of all your ID, passport, driver's licenses, employment status, payslips, and tell them why you are buying bitcoin, where your money is coming from, where it is going, and what you are going to spend it on. Oh, and have the ability to freeze your account and steal your coins if they don't like the answers you give them. 
Alternatively, if you want to have free withdrawals, want to submit absolutely zero KYC information, and improved security by keeping control over your own coins, then start using a decentralized exchange like BISQ to trade peer to peer with other users.
Alternatively, if you want to have free withdrawals, want to submit absolutely zero KYC information, and improved security by keeping control over your own coins, then start using a decentralized exchange like BISQ to trade peer to peer with other users.
Is that chart updated in "real time" or close to it.
I don't use exchanges that much, but I have noticed that some do vary the fee. Sometimes it's easy to see why, like many unconfirmed transactions and they usually have their withdraws in a block or 2. Others I think it's just because they feel like it.
-Dave
The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?
The reason is very commonplace, the commission for withdrawing funds is probably not a very large, but noticeable part of the exchange’s income. For example, I saw exchanges where the output is at the level of 50,000 satoshi, despite the fact that the user’s conclusions can be combined into 1 transaction, and let's say 2000-3000, well, even 5000 satoshi for each, and get the rest of the amount as net profit.
Unfortunately it depends on the exchange you are using , as for me I pay the same amount I pay when I send bitcoins from one wallet to another , the thing is the widrawal fee is different for different exchanges , you should try And read the terms and conditions before you make any move like that , but I do think it would be good if you just keep your bitcoins there for a while and pay at once , this is what I do , keep accumulating them as I go forward and then pay at once , it actually reduces the load but yes is not at all fast and consumes a lot of time..
The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?
Yes it is really to high if your transaction will be made through bitcoin but just like what others do, they are using the exchangers to buy some ripples or ethereum in exchange of bitcoin then when their bitcoin becomes ethereum or xrp then this would be the time that they will be able to withdraw it then the transaction fee will be just xrp or ethereum and it is more less than the transaction fee of bitcoin. This probably many people are doing to avoid large transaction fee of using bitcoin.
What are you trying to trade? BTC and fiat or BTC or altcoins? Although centralized exchanges are awful for this kind of thing, even $12 for a withdrawal is a bit much for them. Take a look at this list: https://withdrawalfees.com/coins/bitcoin. There are plenty of exchanges which will let you withdraw for free or only a couple of dollars. All they will ask in return is to know everything about you and for you to upload details of your entire life, copies of all your ID, passport, driver's licenses, employment status, payslips, and tell them why you are buying bitcoin, where your money is coming from, where it is going, and what you are going to spend it on. Oh, and have the ability to freeze your account and steal your coins if they don't like the answers you give them.
Alternatively, if you want to have free withdrawals, want to submit absolutely zero KYC information, and improved security by keeping control over your own coins, then start using a decentralized exchange like BISQ to trade peer to peer with other users.
Alternatively, if you want to have free withdrawals, want to submit absolutely zero KYC information, and improved security by keeping control over your own coins, then start using a decentralized exchange like BISQ to trade peer to peer with other users.
The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?
the widrawal fee in exchange is mostly 0.001-0.0005 per widraw thats normal thing before but because of price increase of bitcoin it will look like much higher in terms USD value.The solution i do to reduce the value of transaction fee is i use other crypto for widrawal such as XRP and i only use bitcoin for deposit in exchange.
If you dont have local exchange that can easily convert other crypto to fiat is the problem need to solve on me thats not a problem.
Nothing we can do about that mate. Fees are probably high because they need to manage the exchange, plus, they have to pay their employees. Not only that, but there's also the issue of them adding more features and adding qol improvements towards their UI and codes, which makes it easier for traders. It's understandable, and yet at the same time, not. Ngl, I know what you feel, but they're honestly at the upper hand in this argument. Why? Simply because, if you think their fees are high, then don't use their exchange, we aren't forcing you kind of thing.
Tbh, there's nothing wrong with it, they're pretty much just doing their job. Not really our place to complain against them. It's like they place their fees at a place where you can't help but feel the pain but still is within manageable levels.
Tbh, there's nothing wrong with it, they're pretty much just doing their job. Not really our place to complain against them. It's like they place their fees at a place where you can't help but feel the pain but still is within manageable levels.
The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?
I have not used exchanges for a long while, but my last time was on HITbtc exchange, and I don't remember it being expensive... At the same time, it's easy to guess why exchanges raise their fees. For one, this is another source of income for them. Apart from that, a higher fee encourages people to keep their money on the exchange rather than withdraw immediately, which is also good for exchanges. Does Binance have high fees as well? According to what I see on Coingecko, it seems fine (although it could, of course, be around $10, because it depends on the amount of money you withdraw from there. Just look for an exchange which will be better for you. Good luck! Jump to: