Exchanges are starting to reduce their bitcoin withdrawal fees at last

joshy23

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Quote from: eaLiTy on March 02, 2018, 04:02:23 PM

Quote from: Omega Weapon on March 02, 2018, 12:13:02 PM

It is too soon but this could be the start of a new trend, the fees have been an issue for a very long time in bitcoin and it was about time something was done about it, we are finally seeing the first results of this and when the lightning network is finally put to work we may see the beginning of a new era where bitcoin can be used again as a currency to exchange for products and services.

The transaction charges have come down and we would see bitcoin being used as a currency once again and i expect majority of the retailers who stopped accepting bitcoin because of the high fees will start accepting it again,i was able to send a transaction with just $0.06 at 2.897 sat/B and the transaction was included in the blockchain within two minutes ,to be frank the exchanges are still charging more fees than the real charges and they need to give the option to the users at what fees they wanted to send the coins rather than a single fees for everyone.

If they will start doing this business back,then for sure we will see more rise to follow, this actions coming from the exchange can be a great start for most businesses who cater bitcoin to accept the real use of bitcoin, exchange can influence the value they can be the basis of those establish business
on how to charge the fee when its being use from the payment transactions.

Shipitcinvova

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eaLiTy

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Quote from: Omega Weapon on March 02, 2018, 12:13:02 PM

It is too soon but this could be the start of a new trend, the fees have been an issue for a very long time in bitcoin and it was about time something was done about it, we are finally seeing the first results of this and when the lightning network is finally put to work we may see the beginning of a new era where bitcoin can be used again as a currency to exchange for products and services.

The transaction charges have come down and we would see bitcoin being used as a currency once again and i expect majority of the retailers who stopped accepting bitcoin because of the high fees will start accepting it again,i was able to send a transaction with just $0.06 at 2.897 sat/B and the transaction was included in the blockchain within two minutes ,to be frank the exchanges are still charging more fees than the real charges and they need to give the option to the users at what fees they wanted to send the coins rather than a single fees for everyone.

Omega Weapon

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Quote from: teddy5145 on March 02, 2018, 07:11:32 AM

Quote from: ganlianshifu1 on March 02, 2018, 07:01:30 AM

Thanks to Segwit, the bitcoin transaction fee has finally dropped!

The lightning network has passed the field test, so we certainly hope to launch out of the chain extension solution earlier than originally anticipated, thus bringing a lower fee prospect for all.

Lightning Network are still at its infancy, there is still a lot of testing and changes to be made, but it could be the solution for Bitcoin's scalability problem

On other note, Bitfinex also lowers its Withdrawal fees by 25%
All thanks to Batching, Segwit, and Mempool being empty
https://verifiedtopics.com/bitfinex-decrease-btc-withdrawal-fees/

What a time to be alive, eh Roll Eyes

It is too soon but this could be the start of a new trend, the fees have been an issue for a very long time in bitcoin and it was about time something was done about it, we are finally seeing the first results of this and when the lightning network is finally put to work we may see the beginning of a new era where bitcoin can be used again as a currency to exchange for products and services.

stompix

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Quote from: Lovecove on March 02, 2018, 08:15:37 AM

A business model is overall, and not aspect-wise. You can't charge people extra at bank of America for withdrawing funds from your own checking account through the teller because it costs them money to pay employees to do that and to update the servers and to pay the accountants?

To be fair, I know at least two banks that were doing this.
One was a subsidiary of Erste bank the other was local.

If you had an account with them, with a debit card attached you had 0% fees for ATM withdraws. But if you went to the teller at one of their branches and asked for a manual withdraw they charged you 1 euro(if I remember correctly) plus 0.5% of the sum.

And a few years ago there was a whole scandal because they charged an extra euro if you wanted to pay bills (electric,gas,phone) in cash at the teller. To their defense I must add that they did provide an automatic method with 0 fees.

Quote from: filharvey on March 02, 2018, 09:34:05 AM

One of the reason is segwit getting activated widely and due to which the congestion in network getting fully reduced.Another reason is professional new exchanges entering the market to break the monopoly of some exchanges like poloniex,bittrex,kracken which almost had a lion's share of bitcoin exchange market.The bigger exchanges are facing a severe competition from newer exchanges which are ready to provide a good customer service unlike poloniex and bittrex which were well known for their poor customer service.

Monopoly of poloniex and bittrex, when did that happen?
I wound't touch or let my coins touch those exchanges even if the only other still around would be MtGox.

BrewMaster

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Quote from: Azjum on March 02, 2018, 08:48:08 AM

The trading fees may be low (even very low) but they do gain on withdrawals.
Waves at a fixed fee of 0.001, it is interesting to see how much these transaction fees are charged on exchanges.

it is pretty simple to know.
next time you made a withdrawal from an exchange or any kind of similar service, use the transaction ID they give you to check the transaction fee. you can simply do it by searching it on an online block explorer.
it usually is near the same amount they charge you because the transactions have more than one input and also they usually pay a little higher fee than normal.

filharvey

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One of the reason is segwit getting activated widely and due to which the congestion in network getting fully reduced.Another reason is professional new exchanges entering the market to break the monopoly of some exchanges like poloniex,bittrex,kracken which almost had a lion's share of bitcoin exchange market.The bigger exchanges are facing a severe competition from newer exchanges which are ready to provide a good customer service unlike poloniex and bittrex which were well known for their poor customer service.

Azjum

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The trading fees may be low (even very low) but they do gain on withdrawals.
Waves at a fixed fee of 0.001, it is interesting to see how much these transaction fees are charged on exchanges.

antagonist

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Quote from: alyssa85 on March 02, 2018, 06:55:19 AM

Here is Kraken:

https://twitter.com/krakenfx/status/969341056008454144

Quote

Effective immediately, withdrawal fees on Bitcoin (XBT) are reduced to 0.0005, and withdrawal fees on Bitcoin Cash (BCH) are reduced to 0.0001.

And here is Binance:

https://twitter.com/binance_2017/status/969271254959222784

Quote

#Binance is happy to announce a 50% reduction in $BTC withdrawal fees. Effective immediately, BTC withdrawal fees are only 0.0005 BTC!

It's still pretty high given that you can send transactions for a few cents, but it is a step in the right direction.

it is very good thing that they do this , so long create extortion world for bitcoin trader and too many ppl begin to be like dog who chase only its own tail of its own . This one they should have done it very long time in past butnow that they do , i support this one and will not complain it

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Quote from: Lovecove on March 02, 2018, 08:15:37 AM

I don't understand why the server costs should be taken into account when withdrawing?

Because it is part of the cost of providing the service. It is both logical and fair that those that use that service the most pay the most for it.

Quote from: Lovecove on March 02, 2018, 08:15:37 AM

A business model is overall, and not aspect-wise. You can't charge people extra at bank of America for withdrawing funds from your own checking account through the teller because it costs them money to pay employees to do that and to update the servers and to pay the accountants?

Banks charge for some services based on how often people use them. Some of these fees are hidden, like every time you use a debit card the retailer pays the fee not the customer, but it has the same effect in making what you buy more expensive. When the bank provides a service like cash withdrawal for free it isn't really free as that means they have to recoup the cost by charging higher fees elsewhere.
What the exchanges are doing is actually a far more transparent model where you can see what you are paying before deciding to use the service and fairer because customers pay for the services in proportion to how they use them.

Quote from: Lovecove on March 02, 2018, 08:15:37 AM

I don't know why you have sympathy for exchanges lol. They make millions of dollars every year. They make that off of the commissions from trades and maybe some coin listings and what not...

I mean it's so profitable you see new exchanges popping up everywhere... I have no sympathy for their costs whatsoever. Sorry.

It is not a question of me having sympathy it is a question of me understanding different business models and ways to pass on costs most fairly.

Mpamaegbu

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I don't know if we owe this reduction to the overwhelming activities from the Segwit or that people jettisoned using Bitcoin for transactions. Whichever, this is some great news if you asked me as transaction fees almost brought Bitcoin activities to its news. However, I believe the exchanges can still bring the witdrawal charges down more to accommodate minor transactions.

Quote from: kier010 on March 02, 2018, 08:06:33 AM

exchange needs to earn too and they need it to manage their exchange sites. it is a good thing that they reduce their withdrawal fees. i hope other exchange will follow soon.

As if the exchanges don't earn already with the reduced rate. Remember that the Binance exchange was almost running its exchange with zero interest with it started for some weeks.

motoprose

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Quote from: alyssa85 on March 02, 2018, 07:18:43 AM

Bitfinex have also responded and lowered their fees:

https://verifiedtopics.com/bitfinex-decrease-btc-withdrawal-fees/

Quote

Since SegWit adoption we have managed to decrease our BTC withdrawal fees by 25%, to 0.0006 BTC.

It's higher than the rest, but still, it's progress.

Yeah. Teddy already mentioned this a couple of posts down from your initial one.

Quote from: teddy5145 on March 02, 2018, 07:11:32 AM

Quote from: ganlianshifu1 on March 02, 2018, 07:01:30 AM

Thanks to Segwit, the bitcoin transaction fee has finally dropped!

The lightning network has passed the field test, so we certainly hope to launch out of the chain extension solution earlier than originally anticipated, thus bringing a lower fee prospect for all.

Lightning Network are still at its infancy, there is still a lot of testing and changes to be made, but it could be the solution for Bitcoin's scalability problem

On other note, Bitfinex also lowers its Withdrawal fees by 25%
All thanks to Batching, Segwit, and Mempool being empty
https://verifiedtopics.com/bitfinex-decrease-btc-withdrawal-fees/

What a time to be alive, eh Roll Eyes

But understandable of being excited about this happening.
Just hope the other exchanges will follow suit after the major ones have reduced theirs by half. Embarrassed

As far as I can remember Cryptopia and hitbtc has always charged 0.001btc withdrawal fees ever since I have used them for the past year. Undecided

Lovecove

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Quote from: TheQuin on March 02, 2018, 07:08:05 AM

Quote from: alyssa85 on March 02, 2018, 06:55:19 AM

It's still pretty high given that you can send transactions for a few cents, but it is a step in the right direction.

You do have to take into account that the fee doesn't just cover the miner's fee on the transaction but also the cost of administrating the withdrawal system. They need to run servers, put security systems in place for the hot wallet, have a cold wallet, sweep deposits and answer support requests as well.

Even so, they were all quick to put withdrawal fees up so it is good to some reducing them. It would be better if they used dynamic fees like for example Bitfinex (currently 0.0004BTC).

I don't understand why the server costs should be taken into account when withdrawing?

A business model is overall, and not aspect-wise. You can't charge people extra at bank of America for withdrawing funds from your own checking account through the teller because it costs them money to pay employees to do that and to update the servers and to pay the accountants?

I don't know why you have sympathy for exchanges lol. They make millions of dollars every year. They make that off of the commissions from trades and maybe some coin listings and what not...

I mean it's so profitable you see new exchanges popping up everywhere... I have no sympathy for their costs whatsoever. Sorry.

kier010

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exchange needs to earn too and they need it to manage their exchange sites. it is a good thing that they reduce their withdrawal fees. i hope other exchange will follow soon.

Quinni

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At this point I think binance do very well, because I think if a high number of exchanges of personnel, is to be able to cut trading fees, so that we can attract more and more people traded on exchanges. I like binance.

erickkyut

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That's great! I hope that HitBTC will also follow them. The withdrawal fee for HitBTC is 0.001btc. This is a great news for us traders because the fees are now lesser and the transaction is also becoming faster. Bitcoin is now starting to resolve its major problems.

shone08

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Quote from: alyssa85 on March 02, 2018, 06:55:19 AM

Here is Kraken:

https://twitter.com/krakenfx/status/969341056008454144

Quote

Effective immediately, withdrawal fees on Bitcoin (XBT) are reduced to 0.0005, and withdrawal fees on Bitcoin Cash (BCH) are reduced to 0.0001.

And here is Binance:

https://twitter.com/binance_2017/status/969271254959222784

Quote

#Binance is happy to announce a 50% reduction in $BTC withdrawal fees. Effective immediately, BTC withdrawal fees are only 0.0005 BTC!

It's still pretty high given that you can send transactions for a few cents, but it is a step in the right direction.

Finally the withdrawal fee decrease to 50% this is a good news for every trader in that exchange site thanks to bitcoin lightning and segwit we can now experiense a small fee again hoping it will last because the fee are based on bitcoin price.

Red-Apple

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Quote from: alyssa85 on March 02, 2018, 06:55:19 AM

It's still pretty high given that you can send transactions for a few cents, but it is a step in the right direction.

they will always have it higher than normal because they make profit on the difference even if it is little and also they don't have 1 input to pay you from. the transactions usually consist of multiple inputs which will increase the fee and depending on your withdrawal size it can be more.

i think the best way to set the withdrawal fees is a dynamic one though. for example when mempool is empty and you are withdrawal something they can pay with a small transaction size it should be a small fee and if you are withdrawing a big amoung like 50BTC and they have to use a lot of inputs you pay a higher fee or when the mempool is fuller.
that way they don't have to change it every time with a big delay like this!

ps. the site you have in your signature still charges outrageous withdrawal fees.

eternalgloom

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It's about time, but I still think Kraken can do a bit better than that. I would really like to gather all my dust from exchanges, once they start charging the actual fees.
Exchanges should only make profit on trades, not on deposits or withdrawals, but that's just my opinion.

I'd probably have around 0.02 BTC if I could withdraw everything from Kraken, Hitbtc, Bittrex etc.

alyssa85

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Quote from: BelieveInBTC on March 02, 2018, 07:12:14 AM

Do you happen to know which exchanges have the lowest withdrawal fee? I think I'm going to switch to another one.

GDAX has a zero withdrawal fee (they even maintained zero fees when miner fees were going crazy in December). But I think the exchange is for Americans only.

Topic: Exchanges are starting to reduce their bitcoin withdrawal fees at last (Read 246 times)