Topic: Lightning network fee higher than on-chain network fee (Read 116 times)
Unfortunately I think it will also happen at other exchanges in the future. Because low withdrawal fees and fast transactions allow people to easily hold their Bitcoins out of the exchanges without spending much money and dedicating time for doing that. But exchanges need those funds, for liquidity and sometimes for making money elsewhere with them, as we have seen with FTX for example. So unfortunately, exchanges offering Lightning Network deposits and withdrawals will likely increase their fees in the same way as Kucoin when people will start to use LN more frequently IMO.
I thought it will be like what mentioned by @Synchronice, but you're actually comparing the lightning fees in CEX and on chain network fees.
Actually OP compare on-chain fee with exchange withdraw fee, where Kucoin take some profit from it. LN fees usually is much lower and could be $0 in some cases (e.g. no routing or all channel used for routing doesn't impose any fee).
I thought it will be like what mentioned by @Synchronice, but you're actually comparing the lightning fees in CEX and on chain network fees.
Actually OP compare on-chain fee with exchange withdraw fee, where Kucoin take some profit from it. LN fees usually is much lower and could be $0 in some cases (e.g. no routing or all channel used for routing doesn't impose any fee).
Btw, I want to try to have bitcoins on the lightning network, what is the best non-custodial wallet? That means a special application for the lightning network.
You will really like this thread which you can see good lightning network wallets: Lists of open-source bitcoin lightning walletsYou will like Phoenix. Also Zeus, Aqua and Muun are good.
I will try to collect sat on the lightning network.
I noticed that Kucoin is gradually increasing the fee. Probably as more people are using it to withdraw.
Is there any chance you hacked my mind? I don't use Kucoin because my Country is blacklisted on their platform but if I had a verified account there, the only thing I would use it for would be withdrawals 
I can surprise you even more.
According to https://www.binance.com/en/fee/cryptoFee, withdrawal fee for Bitcoin (legacy address) is 0.000068 BTC but withdrawal fee for SegWit address is 0.001 BTC. Does this make any sense?
Probably a mistake they didn't correct, but on the app, the fee is the same for all Bitcoin address types. There is no way that is more expensive than the BTC ERC20 tokens According to https://www.binance.com/en/fee/cryptoFee, withdrawal fee for Bitcoin (legacy address) is 0.000068 BTC but withdrawal fee for SegWit address is 0.001 BTC. Does this make any sense?
I can surprise you even more.
According to https://www.binance.com/en/fee/cryptoFee, withdrawal fee for Bitcoin (legacy address) is 0.000068 BTC but withdrawal fee for SegWit address is 0.001 BTC. Does this make any sense?
From the last picture on the OP post, you can see that Binance do not differentiate between legacy and segwit addresses. Just click on bitcoin and withdraw. They are both of the same fee. According to https://www.binance.com/en/fee/cryptoFee, withdrawal fee for Bitcoin (legacy address) is 0.000068 BTC but withdrawal fee for SegWit address is 0.001 BTC. Does this make any sense?
But what I am talking about is how the lightning network fee on Kucoin is too much. Even 14 times higher than the lightning network fee on Binance and most other exchanges that I have used lightning network for payment.
A little surprised with the onchain bitcoin withdrawal fee from your picture shows 0.0000068/$0.4 while I checked the Binance app with 0.000068/$4.43 onchain bitcoin withdrawal why is it a little different?
No much difference. It is $4.44424414 on the picture. Binance is not using fixing rate again. It has a way it is done it is changing.Btw, I want to try to have bitcoins on the lightning network, what is the best non-custodial wallet? That means a special application for the lightning network.
You will really like this thread which you can see good lightning network wallets: Lists of open-source bitcoin lightning walletsYou will like Phoenix. Also Zeus, Aqua and Muun are good.
A little surprised with the onchain bitcoin withdrawal fee from your picture shows 0.0000068/$0.4 while I checked the Binance app with 0.000068/$4.43 onchain bitcoin withdrawal why is it a little different?
The lightning network withdrawal fee on Kucoin is very unreasonable because it is more expensive, while on Binance it is much different, I don't know why this Kucoin exchange? I have never made any withdrawals with the lightning network before.
Btw, I want to try to have bitcoins on the lightning network, what is the best non-custodial wallet? That means a special application for the lightning network.
The lightning network withdrawal fee on Kucoin is very unreasonable because it is more expensive, while on Binance it is much different, I don't know why this Kucoin exchange? I have never made any withdrawals with the lightning network before.
Btw, I want to try to have bitcoins on the lightning network, what is the best non-custodial wallet? That means a special application for the lightning network.
I thought it will be like what mentioned by @Synchronice, but you're actually comparing the lightning fees in CEX and on chain network fees.
In the future they will increase the fees for lightning network withdrawal and lower their KCC centralized network to encourage people use their shitty centralized network.
Yeah just like we know, their sites their rules.
In the future they will increase the fees for lightning network withdrawal and lower their KCC centralized network to encourage people use their shitty centralized network.
Yeah just like we know, their sites their rules.
I can surprise you even more.
According to https://www.binance.com/en/fee/cryptoFee, withdrawal fee for Bitcoin (legacy address) is 0.000068 BTC but withdrawal fee for SegWit address is 0.001 BTC. Does this make any sense?
According to https://www.binance.com/en/fee/cryptoFee, withdrawal fee for Bitcoin (legacy address) is 0.000068 BTC but withdrawal fee for SegWit address is 0.001 BTC. Does this make any sense?
I am referring to Kucoin. A custodial lightning network payment.
Definitely you know that I am talking about bitcoin but I am not talking about using a noncustodial lightning network. Noncustodial lightning network fee is $0 if you open channel directly with someone that you want to send the coins to. But if the channel is not directly opened, low fee less than $0.0001 are charged.
See the fee for 1 input and 2 outputs on mempool.space right now which is 9 sat/vbyte with a fee of $0.82.
But on Kucoin, the lightning fee for bitcoin is $0.97
On other exchanges like Binance, the fee is less than $0.07
I am surprised that lightning network fee which is $0 or less than $0.0001 on noncustodial wallet is almost $1 on Kucoin. I noticed that Kucoin is gradually increasing the fee. Probably as more people are using it to withdraw.
Definitely you know that I am talking about bitcoin but I am not talking about using a noncustodial lightning network. Noncustodial lightning network fee is $0 if you open channel directly with someone that you want to send the coins to. But if the channel is not directly opened, low fee less than $0.0001 are charged.
See the fee for 1 input and 2 outputs on mempool.space right now which is 9 sat/vbyte with a fee of $0.82.
But on Kucoin, the lightning fee for bitcoin is $0.97
On other exchanges like Binance, the fee is less than $0.07
I am surprised that lightning network fee which is $0 or less than $0.0001 on noncustodial wallet is almost $1 on Kucoin. I noticed that Kucoin is gradually increasing the fee. Probably as more people are using it to withdraw.
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