Topic: High withdraw fee rates by binance etc, Why?! (Read 241 times)
Exchange charges are high because it's their business. They are taking care of your funds and accounts. You know it's a withdrawal fee, not a transaction fee. They are holding funds on your behalf of you. Though they are making revenue from trading fees, withdrawal fee is more high revenue for them. It's because we are forced to pay if in case deposit there. So don't use CEX unless you want to trade. Use a non-custodial wallet to handle your funds, so you don't need to spend extra for transferring funds.
And CEX like Binance did identify this demand, and filled the gap!
CEXs might fill the demand, but there are many CEXs other than Binance which do not rip off their users to such a ridiculous degree.are using something other than CEX sites, for keeping their crypto...
If they are using a centralized exchange to store crypto, then they don't actually own any crypto. They own an IOU at best, which can be taken away at any time and for any reason.Remembering I was talking to a friend, ask him do you know about technical stuff of bitcoin?
You don't need to understand the technical side of bitcoin to appreciate having sole and uncensorable control over your own money. 
I still have never managed to figure out why people seem to be OK with this. Why use an exchange which charges you 20 bucks to access your "own" money when they could do it for 5 cents? Why do Binance users put up with this highway robbery?
I think having bitcoin is somehow complex for even average users, I mean those users who do not even install an antivirus on their laptops. And CEX like Binance did identify this demand, and filled the gap! Also, nowadays many users just need bitcoin for trading and investing, not for anything else...
Those for trading will use brokers like Binance, those for investing will use cold wallets like ledger! from people in my circle I can say only 1 of 5 (20%), are using something other than CEX sites, for keeping their crypto...
I think bitcoin is not designed for being popular, it is designed to be decentralized, so there is room for such 3rd sites...
I think most Binance users, just heard (once) about the fundamental stuff of bitcoin like signing, hash, distributed ledger, block chain etc.
Remembering I was talking to a friend, ask him do you know about technical stuff of bitcoin? he said yes. I should look at news, and identify when is time to sell and when is time to buy!
So brokers take withdrawal fee from users, say it is $20, pay 5% of it ($1) as network fee, keep rest 95% ($18) for themselves...
You've got it now, but bear in mind the network fee they pay is hugely overpaid as well. The vast majority of bitcoin transaction I have ever made I have paid a rate of somewhere around 1-2 sats/vbyte, which works out (at current prices) of around 10 cents. With large batched transactions, as is the case with withdrawals from centralized exchanges, then the relative size of your individual output is even less, meaning that your part of the transaction would cost less than 5 cents if you had control over signing and broadcast. But instead of paying 5 cents they charge you 20 bucks, overpay the network fee, and then pocket the rest.I still have never managed to figure out why people seem to be OK with this. Why use an exchange which charges you 20 bucks to access your "own" money when they could do it for 5 cents? Why do Binance users put up with this highway robbery?
For conclusion, and from posts in the topic, I can say that "Withdrawal Fee" is something different than "Network fee".
The withdrawal fee is invented by brokers (and taken by brokers), while network fee is basic feature of bitcoin, and is taken by miners.
Withdrawal fee is somewhere from 1x to 25x times of network fee. (network fee much cheaper)...
So brokers take withdrawal fee from users, say it is $20, pay 5% of it ($1) as network fee, keep rest 95% ($18) for themselves...
The withdrawal fee is invented by brokers (and taken by brokers), while network fee is basic feature of bitcoin, and is taken by miners.
Withdrawal fee is somewhere from 1x to 25x times of network fee. (network fee much cheaper)...
So brokers take withdrawal fee from users, say it is $20, pay 5% of it ($1) as network fee, keep rest 95% ($18) for themselves...
I can't find if there's a minimum withdrawal amount: most exchanges don't allow you to withdraw $10 in on-chain Bitcoin.
I don't think there are any minimum amount of Bitcoin you can withdraw on FTX, but you need to be careful to choose Bitcoin main chain, not fake bitcoin on bsc or sol chains.Sending anything to wrong chain will cost you minimum 5% to return it back if you make some mistake, so better be careful newbies.
Last time I tested I am sure I tested with minimal amount of coins with value below $10 and it worked fine.
Note that FTX is changing this terms ofn every few weeks so better verify this yoursefl, instead of trusting my words.
I would pay attention on
Hi,
trading websites like binance, do charge user for 0.0005 BTC (half of mili BTC or 0.5 mBTC) when user is going to withdraw.
Many other websites are likely charging users for same fee. What is the reason?
Sites like binance do pay users in groups, I mean they pay to 10 users in same transaction. this will also reduce fee payed by binance.
So why binance (or other sites) do charge user for $10 as fee when they do pay $1-2 as fee?
For example even if binance pay $1 as fee to the bitcoin network, then it will charge user for $10 (0.5mBTC).
I think binance do not likes that users withdraw their BTCs because maybe they do not have enough BTC in their wallets!
trading websites like binance, do charge user for 0.0005 BTC (half of mili BTC or 0.5 mBTC) when user is going to withdraw.
Many other websites are likely charging users for same fee. What is the reason?
Sites like binance do pay users in groups, I mean they pay to 10 users in same transaction. this will also reduce fee payed by binance.
So why binance (or other sites) do charge user for $10 as fee when they do pay $1-2 as fee?
For example even if binance pay $1 as fee to the bitcoin network, then it will charge user for $10 (0.5mBTC).
I think binance do not likes that users withdraw their BTCs because maybe they do not have enough BTC in their wallets!
Nope that's not it because this is not how they run their business and Binance is earning a lot of money for this as they are the top exchange exist. If I am not wrong that's the default fees even before when bitcoin is so cheap. So if you think the network fee is so high better shift to other alts which have less fee and fast.
You can also switch to FTX exchange that doesn't charge any fees for withdrawing Bitcoin
Let's see what they say:Quote
Small BTC withdrawal fees: BTC withdrawals > 0.01 BTC are free. BTC withdrawals < 0.01 BTC are charged withdrawal fees after your first free one per day.
I can't find if there's a minimum withdrawal amount: most exchanges don't allow you to withdraw $10 in on-chain Bitcoin. When i want to withdraw low amount of BTC like $10 or less, as some user suggested, First i exchange the BTC into others like LTC or Tether, then use sites like fixedfloat{dot}com and change Tether to BTC back again. fixedfloat fee is 0.5%~1% of market price, and there is no withdrawal fee, which is good for low amounts, like less $10.
You can also switch to FTX exchange that doesn't charge any fees for withdrawing Bitcoin, instead of converting to shitcoins all the time and you will still pay fees for them, just less.I can't confirm if this is true but it appears that Kraken and Coinbase exchange currently also has very low fees for Withdrawing BTC, but maybe it's adjusting according to mempool state.
Check this comparison table:
https://withdrawalfees.com/coins/bitcoin
PS
I would be very careful using any centralized exchanges, and it's better to switch to something like Bisq that can't freeze your account and confiscate your coins.
and there is no withdrawal fee
That's not entirely correct: you also pay for the on-chain transaction fee. When on-chain fees are higher, switching to Bitcoin LN pays off.
When i want to withdraw low amount of BTC like $10 or less, as some user suggested, First i exchange the BTC into others like LTC or Tether, then use sites like fixedfloat{dot}com and change Tether to BTC back again. fixedfloat fee is 0.5%~1% of market price, and there is no withdrawal fee, which is good for low amounts, like less $10.
Or use a different exchange
This, exactly. I don't want to swap my valuable bitcoin for some useless, centralized and insecure altcoin just because the exchange is ripping me off. Much better to find a more honest exchange.On this BEST Crypto Exchange Fee Comparison, it seems Binance really has a huge fee with a 3.5% withdrawal fee and I saw FTX exchange platform which is all are low fees and most of them are 0%.
Choosing the right exchange sometimes it's a very crucial part.
No there won't be any uproar! ING for instance started charging users (dependong on which subscription they have) if they withdraw money (or above a certain number of transactions per year). It's still low (€0.80), but they charge €6.00 per deposit already. Money is just an inconvenience for banks nowadays. And I bet those fees will only go up in the future.
So you have to pay every month for the OranjePakket account in the first place, you have to pay every month for the debit card, and then you have to pay to deposit money in to your account, and then pay again to withdraw money from your account. And in return for all that payment, they offer a cool 0% interest rate. And people actually use this? What a rip off.Bitcoin fixes this.
Or use a different exchange
This, exactly. I don't want to swap my valuable bitcoin for some useless, centralized and insecure altcoin just because the exchange is ripping me off. Much better to find a more honest exchange. Imagine paying $30 just to be allowed to access your own money. If a fiat bank tried to do that there would be uproar.
No there won't be any uproar! ING for instance started charging users (dependong on which subscription they have) if they withdraw money (or above a certain number of transactions per year). It's still low (€0.80), but they charge €6.00 per deposit already. Money is just an inconvenience for banks nowadays. And I bet those fees will only go up in the future.Withdrawal fees for them are like service fees as well, so if you feel that's huge, then why not try withdrawing altcoins?
Or use a different exchange, Kraken for instance charges 0.00001 BTC (or free, if you use Bitcoin Lightning Network). Vote with your wallet 
Withdrawal fees for them are like service fees as well, so if you feel that's huge, then why not try withdrawing altcoins? That's my technique, if I will trade with Binance, I usually trade by BTC to a certain altcoins, withdraw it to my local wallet and convert it to local currency.
Hi,
trading websites like binance, do charge user for 0.0005 BTC (half of mili BTC or 0.5 mBTC) when user is going to withdraw.
Many other websites are likely charging users for same fee. What is the reason?
Sites like binance do pay users in groups, I mean they pay to 10 users in same transaction. this will also reduce fee payed by binance.
So why binance (or other sites) do charge user for $10 as fee when they do pay $1-2 as fee?
For example even if binance pay $1 as fee to the bitcoin network, then it will charge user for $10 (0.5mBTC).
I think binance do not likes that users withdraw their BTCs because maybe they do not have enough BTC in their wallets!
trading websites like binance, do charge user for 0.0005 BTC (half of mili BTC or 0.5 mBTC) when user is going to withdraw.
Many other websites are likely charging users for same fee. What is the reason?
Sites like binance do pay users in groups, I mean they pay to 10 users in same transaction. this will also reduce fee payed by binance.
So why binance (or other sites) do charge user for $10 as fee when they do pay $1-2 as fee?
For example even if binance pay $1 as fee to the bitcoin network, then it will charge user for $10 (0.5mBTC).
I think binance do not likes that users withdraw their BTCs because maybe they do not have enough BTC in their wallets!
The profit that Binance exchange is making is too much that even if they make zero withdrawal fee, it will have no impact on them. But these exchange motive is to make more and more money, whether it is from the trading fee or withdrawal fee.
Yeah, keeping the withdrawal fee a bit high also discourages traders to move the funds out of the exchange and exchanges do want more liquidity.
1. Which is the more obvious one; So that they can make abnormal profits from your transaction fees
2. So that they can discourage you from using Bitcoin network to withdraw and instead use their shitcoin network (Binance smart chain and Binance chain) but in actual sense right now at 1 sat per vbyte Bitcoin network is so check when you attempt to make a transfer.
2. So that they can discourage you from using Bitcoin network to withdraw and instead use their shitcoin network (Binance smart chain and Binance chain) but in actual sense right now at 1 sat per vbyte Bitcoin network is so check when you attempt to make a transfer.
Hi,
trading websites like binance, do charge user for 0.0005 BTC (half of mili BTC or 0.5 mBTC) when user is going to withdraw.
Many other websites are likely charging users for same fee. What is the reason?
Sites like binance do pay users in groups, I mean they pay to 10 users in same transaction. this will also reduce fee payed by binance.
So why binance (or other sites) do charge user for $10 as fee when they do pay $1-2 as fee?
For example even if binance pay $1 as fee to the bitcoin network, then it will charge user for $10 (0.5mBTC).
I think binance do not likes that users withdraw their BTCs because maybe they do not have enough BTC in their wallets!
trading websites like binance, do charge user for 0.0005 BTC (half of mili BTC or 0.5 mBTC) when user is going to withdraw.
Many other websites are likely charging users for same fee. What is the reason?
Sites like binance do pay users in groups, I mean they pay to 10 users in same transaction. this will also reduce fee payed by binance.
So why binance (or other sites) do charge user for $10 as fee when they do pay $1-2 as fee?
For example even if binance pay $1 as fee to the bitcoin network, then it will charge user for $10 (0.5mBTC).
I think binance do not likes that users withdraw their BTCs because maybe they do not have enough BTC in their wallets!
High withdraw fees are to discourage users from withdrawing their coins.
This consolidation (10 minutes ago) also overpaid by a factor 12. I can only conclude Binance has totally different objectives than the average Bitcoin user.
It's easy to massively overpay the fee when it isn't your money that is paying for it. Binance have been ripping off their users daily since their foundation, but for some reason people turn a blind eye. As Charles-Tim says, at the height of it they were charging 50,000 sats per withdrawal when bitcoin was $60k. Imagine paying $30 just to be allowed to access your own money. If a fiat bank tried to do that there would be uproar.It's not as if Binance doesn't scam users. See this topic. Very short version: shasan withdrew Doge from Binance to someone else's address. A year later, when Doge is worth much more, Binance sends the same Doge transaction again and takes everything in shasan's account to make up for their own stupidity.
Wow. Literal theft. Again, imagine if a fiat bank said "Well, we accidentally sent a million buck to someone you sent money to a year and a half ago, so we are going to take everything you own as compensation for our own mistake."Centralized exchanges really are the worst of both worlds. All the downsides of complete centralization with none of the insurance or protections that fiat banks provide.
What I don't like about these instant swaps platforms are the sudden freezing of funds and requesting KYC and the fact they have plenty of scam accusations to their names. It's a risk everyone needs to weigh up for themselves.
It's not as if Binance doesn't scam users. See this topic. Very short version: shasan withdrew Doge from Binance to someone else's address. A year later, when Doge is worth much more, Binance sends the same Doge transaction again and takes everything in shasan's account to make up for their own stupidity. Jump to: