Topic: Who's Raking in This Fee - page 2. (Read 326 times)

As far as I know, the transaction fee goes and is paid to the miners who add or process, validate your transaction to the blockchain, and confirm it. So yeah, the miners are the ones benefiting from the transaction fees regardless of the specific source or destination of the bitcoins. The exchange may only charge a withdrawal fee to cover its own costs.

Depending on the exchange, the fees should change with the actual miner fees. Usually it’s a small fee plus the actual miner fee. There are times however when fees are very low but your withdraw fee is still quite large, nothing you can do really.

If you need to deposit and withdraw lots of transactions you need to use either lightning network or some type of L2 if you are on the Ethereum network. It’s always expensive getting transactions going on ETH and BTC.

Your question is who benefits from the transaction fee or rather withdrawal charges of bitcoin done from the exchanges to your wallet i would say both the exchange and miners benefit. Firstly exchanges batches transactions and then send them all out at once (an example is how your Campaign manager sends you your weekly payment combine with others), you know that exchanges have fixed withdrawal charges which most of the Time is higher than the regular transaction fee. So they just take this charges and broadcast your transaction with others and pay a certain amount of fee for the on chain transaction. This fee they pay goes to the miner that mines the block which the transaction they broadcasted belongs to. This transaction fee as said is not that high compared to all the charges they do for all those withdrawals by it users so they also benefit from those charges.

For binance they have a static fee of 0.0005 btc which if you calculate is higher than even what we have as transaction fee now. Also if you have a guess that maybe what if the transaction fee on the mempool gets bigger than there charges? I would say it is not that much of a problem because most of the top exchanges liaise with mining pools to include their transactions into their blocks and they paid them. In fact Binance has its own mining pool which if I am not mistaken is one of the top 6 largest mining pools which makes there’s easier

exchanges most of the time batch lots of peoples withdrawals as multiple outputs of one transaction, making assumptions that it will save the user fee's this way

exchanges however deduct an amount from withdrawal balance when you press the button

exchanges can say they deduct 0.00003-0.003 as a fee.. but when you get the coin. you can run some math on it to see if they fairly charged you inside the exchange

find the tx of the btc you got paid to your self custody. look at the number of outputs(destinations)
minus one of the outputs(destination) count to work out how many users they facilitated (minus the one 'change address' back to service)

take the total fee for the transaction and divide it by the count of destinations.. and you get a rough per user cost of that transaction..
see how it compared to how much the exchange deducted from your balance at withdrawal, to see how fair it is and see if the exchange fully paid your deduction along with the other users deduction as a tx-fee.. or if the exchange kept some of your withdrawal deduction

Binance approve your withdrawal request and they proceed it for you together with other users in a batch transaction.

It is an on-chain transaction so Binance have to pay transaction fee to Bitcoin miners. But they do a batch transaction that has many outputs to many users for their withdrawals so Binance save on chain transaction fee with a batch transaction. They benefit from it because they charge all user same high withdrawal fee.

I can say, both Bitcoin miners and Binance get benefit from it. Miners enjoy transaction fee and Binance enjoy a positive balance of what they get by charging users and what they pay to Bitcoin miners.

Raking you mean benefiting from it? Is that what you mean?

With the transaction fees so high, the exchange has an advantage because they can raise those prices and then pool up transactions that are withdrawing it and then take advantage of the multiple transaction fees and then profit in someway with the extra that it has. I think they have an advantage in that case because a lot of volatility with the tx fee and with a lot of people withdrawing at the same time the fees are already big for the exchange. 

So I think it's the exchanges that benefit or earn from it.

The difference between the network fee and what you are charged on a CEX is a profit for the exchange. However, just because you are charged (for example) 0.001 BTC and the network fee is 0.0005 BTC, it does not mean that the CEX profited 0.0005BTC. CEX's also have to move inputs to hot wallets, cold wallets, etc which are additional costs that come after customer deposits and withdrawals. They pass on this cost to customers with the excessive fee.

Overall, they do profit from the withdrawal fees but not as much as you would assume. If you are using a CEX as a wallet and not a means of trading only, then you will waste a serious amount of money. You should definitely use a wallet for sending/receiving day to day, and only a CEX if there is no other option or means of exchange (dex, p2p, etc are not only fairer with fees but better for your privacy too).

I believe it will still be  miners that will get whatever sats the exchange decide to use as fee when they sent the coin you purchased to you.

CEX do adjust what they charge users as transaction fee based on the blockchain network and since the fee is currently high if you want your transaction to be confirmed in a short period of time you’ll have to pay higher and also the transaction fee can fluctuate at anytime, currently the transaction fee in binance is 0.00048BTC it was higher than this the last time I checked.

Hey there, could you help me out with this question? So, when we send Bitcoin from one wallet, like an Electrum wallet, to another Bitcoin address, there's this transaction fee, right? Currently, it's pretty high, and the miners are the ones benefiting from it, got that part. Now, in another scenario, let's say I purchased some bitcoins from a centralized exchange like Binance, and I need to send them to a cold wallet address. Again, there's a transaction fee. But who's raking in this fee: the miners or the CEX platform?