Why exchanges are charging a big amount as transaction fee on withdrawal - page 2.

Kakmakr

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Exchanges are actually the "weakpoint" for Crypto currencies, because it strips off all anonymity that you might have had and it is also very expensive to use. The moment when your tokens hits an exchange and it touches anything to do with Fiat currencies, you are getting screwed.

Some exchanges have deposit and withdrawal fees and also trading fees... so everything you do are charged, just like money in a Bank. I pay more or less 1% trading fees on all my transactions.... so you paid almost 12% in trading and other fees... to get it deposited in your Bank. (They also charge you a standard Bank transfer fee for money that are being withdrawn from their system) Roll Eyes

Reid

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I am glad that the gambling industry is changing when it comes to withdrawal fees.
But, why is it that exchanges could not do the same?
I had the same problem for years but I never tried to talk about it.
I don't know why, I just swallowed the truth and just thought of it as where their profits will come from.
Most old-school investors want to keep Bitcoin but will regret the fees when they go out using its chain so you use other chains for lower fees but it's not Bitcoin, which is a big problem.

DaveF

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Outside of the obvious reason of because they can, there is also the simple reason that they can with the high prices get your transaction into the next block or 2 regardless of what the block chain does. Even over this last weekend for long stretches of time BTC fees of 1sat/b would have gotten you into the next block. And there were a few stretches of fewer blocks and more tx where it went to 15 to 20 sat/b for a while.

This way, they know you are in the next block, and they make a nice profit.

Not saying it's a good thing, but it is the way it is.
Years ago, you used to see threads about how long some exchanges took to send out payments, but they didn't take long, they had low fees and sent them at low fees and people had to wait. This caused people to start screaming SCAM or BAD SERVICE or whatever.

Now, you pay you fee and off it goes.

*All the above is in the general view, there are still exchanges that charge insane fees and send with low fees but if you look at a lot of block explorers you will see that when you can to transactions at 1sat/b there are exchanges paying 50x that.

-Dave

Fesatmas

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Unfortunately, so far personally, to withdraw crypto to fiat is still in good condition, unless we are on an exchange where the exchange is often referred to as a fake exchange. They allowed us to withdraw, but at a greater cost than I pulled.

I'll give you an example of one of the cursed exchanges I've used because I got coins from Airdrop and it took me half a year to meet the minimum withdrawal:

Note (I'm using a phone so the image display is the phone version Sorry, the image display will be very annoying).

Exchange: https://bitcastle.io/

In essence, as traders, we must really choose and sort out the right exchange and not burden the user when making withdrawals.

Sanugarid

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They're all the same, just look for the one that has a lower fees, they need the fees so you can't blame them since they're a company, profit before the people first for them, you can't do too much about it because it's not a permanent thing, it's not like they're planning to stay that way, they know how it feels to pay absurd fees too.

Strongkored

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Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

If this is the scenario surely then we can't make a plan with what is available in the wallet.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

Because of the high withdrawal fees that finally make me trade more often on local exchanges that provide fiat, maybe the liquidity is not as high as other exchanges but if trading profits have to be cut by high withdrawal fees I don't think it's a pleasant one. Exchange uses withdrawal fees as one of its sources of income apart from trading fees.

My guess you uses HitBTC because only that exchange uses 0.0009 BTC as a withdrawal fee, the rest is lower but some are even higher than that number
source : https://withdrawalfees.com/coins/bitcoin

Charles-Tim

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Quote from: Oceat on October 05, 2021, 06:36:52 PM

I believe a mempool have something to do with it especially when it's congested, exchanges tend to increase the transaction fee when using Bitcoin. That's why it's necessary to convert your Bitcoin to another altcoin that has small transaction fee to save more than spending more only for withdrawing Bitcoin.

I have used three exchanges before, two have static fee while you can adjust the fee on the third one. But what I noticed about the three exchanges is that the withdrawal fee is not adjusted as the mempool is getting congested or decongested.

Quote from: Oceat on October 05, 2021, 06:36:52 PM

I have done it so many times if I don't like the current fees on some exchanges that I used then I automatically convert it to another altcoin and it did save me a lot than using Bitcoin.

It depends on the amount you want to transfer. If you have $50000 or higher worth of bitcoin, you will never think of converting it to altcoins because the trading fee (conversion fee) would have taken more than the bitcoin withdrawal fee on the exchanges, the trading fee is in certain percentage of the amount you want to trade not an actual amount, so the higher the amount you want to trade, the higher the trading fee in amount.

Oceat

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Quote from: xSkylarx on October 05, 2021, 12:23:52 PM

Quote from: Dread Pirate Roberts on October 05, 2021, 11:48:56 AM

Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

The bitcoin fee on the exchange does feel very high . because the average exchange uses a fixed fee. and the high bitcoin price affects the total fixed fee as well. and I think this applied on many exchanges . except in your own wallet. maybe the best way to avoid this thing happen again to find out how to withdraw altcoin to your currency. because altcoins have much lower fees. such as LTC its less than $1

I agree that this is a great tip for lowering fees. They mostly do it because they can profit from it. Imagine paying them for the security of your money as well as the use of their website. They will also implement a minimum withdrawal to ensure that they receive enough fees. Converting your coin into an altcoin is the best option for lowering fees and speed, as bitcoin currently has extremely high fees and traffic.

I believe a mempool have something to do with it especially when it's congested, exchanges tend to increase the transaction fee when using Bitcoin. That's why it's necessary to convert your Bitcoin to another altcoin that has small transaction fee to save more than spending more only for withdrawing Bitcoin.

I have done it so many times if I don't like the current fees on some exchanges that I used then I automatically convert it to another altcoin and it did save me a lot than using Bitcoin.

24Kt

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Quote from: Charles-Tim on October 05, 2021, 01:20:24 PM

Quote from: The Sceptical Chymist on October 05, 2021, 04:42:04 AM

But yeah, 0.0009BTC is a pretty high fee, and personally I think it's excessive. Obviously whatever exchange that was is making a profit from that, because it doesn't take that much to send bitcoin right now with a reasonably high network fee. OP might have tried exchanging that TRX on the altcoin marketplace section. I don't know how many trades happen there, but I'm pretty sure that he would have saved money had he found someone to trade with.

If you check this link, I think he used HitBTC, a centralized exchange that always freeze customers coins even for no good reason. I was using the exchange before, it was my first exchange because verification is not needed until I realized the withdrawal fee was too much. Even withdrawing altcoin on the exchange will require high fee but no like bitcoin which is higher.

Quote from: Cadaver20 on October 05, 2021, 12:49:30 PM

The withdrawal fee of almost all crypto exchanges is the same. So you will not get the solution from crypto exchange. Instead, you need to find a coin that can be easily converted into fiat money. When I need money, I convert my crypto to Litecoin because its withdrawal fee is the lowest. Then i convert Litecoin to fiat money.

Litecoin withdrawal fee can be low. But exchange fees are not the same although the withdrawal fee is higher than on-chain transaction fee paid to miners.

Press on the coin to check its withdrawal fee on the listed exchanges

Withdrawal fee on cryptocurrency exchanges

The link above is a very good one to save for comparison purposes of withdrawal fees among exchanges. I can see that hitbtc has really 90k sats fee which for me is really high. If the OP doesn't want to pay those fees in btc, there are p2p trading in kucoin and binance. Right now, kucoin has no compulsory KYC but of course if you will avail the p2p you need to comply with the KYC requirements. But if you will not avail their p2p and just trade, their btc withdrawal fee is lower than 90k. But you will already save fees if you will directly use the p2p trade. Up to the OP if he is fine with submitting KYC.

Hamphser

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Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

If this is the scenario surely then we can't make a plan with what is available in the wallet.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

Just convert it on other altcoins which does have less or low withdrawal fee then your problem get solved.Some exchange do really charged up much higher or simply set out fixed rates rather than on dynamic ones.

Some does have dynamic which means it will always vary on the pool or network condition.If you do find out that fees arent justfiable then you could always leave and choose for another one but if this exchange is

been long time you've been using then you could always make up some switch up with other coins to ease up the amount of fee that been charged.

Charles-Tim

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Quote from: The Sceptical Chymist on October 05, 2021, 04:42:04 AM

But yeah, 0.0009BTC is a pretty high fee, and personally I think it's excessive. Obviously whatever exchange that was is making a profit from that, because it doesn't take that much to send bitcoin right now with a reasonably high network fee. OP might have tried exchanging that TRX on the altcoin marketplace section. I don't know how many trades happen there, but I'm pretty sure that he would have saved money had he found someone to trade with.

If you check this link, I think he used HitBTC, a centralized exchange that always freeze customers coins even for no good reason. I was using the exchange before, it was my first exchange because verification is not needed until I realized the withdrawal fee was too much. Even withdrawing altcoin on the exchange will require high fee but no like bitcoin which is higher.

Quote from: Cadaver20 on October 05, 2021, 12:49:30 PM

The withdrawal fee of almost all crypto exchanges is the same. So you will not get the solution from crypto exchange. Instead, you need to find a coin that can be easily converted into fiat money. When I need money, I convert my crypto to Litecoin because its withdrawal fee is the lowest. Then i convert Litecoin to fiat money.

Litecoin withdrawal fee can be low. But exchange fees are not the same although the withdrawal fee is higher than on-chain transaction fee paid to miners.

Press on the coin to check its withdrawal fee on the listed exchanges

Withdrawal fee on cryptocurrency exchanges

Cadaver20

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Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

The withdrawal fee of almost all crypto exchanges is the same. So you will not get the solution from crypto exchange. Instead, you need to find a coin that can be easily converted into fiat money. When I need money, I convert my crypto to Litecoin because its withdrawal fee is the lowest. Then i convert Litecoin to fiat money.

xSkylarx

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Quote from: Dread Pirate Roberts on October 05, 2021, 11:48:56 AM

Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

The bitcoin fee on the exchange does feel very high . because the average exchange uses a fixed fee. and the high bitcoin price affects the total fixed fee as well. and I think this applied on many exchanges . except in your own wallet. maybe the best way to avoid this thing happen again to find out how to withdraw altcoin to your currency. because altcoins have much lower fees. such as LTC its less than $1

I agree that this is a great tip for lowering fees. They mostly do it because they can profit from it. Imagine paying them for the security of your money as well as the use of their website. They will also implement a minimum withdrawal to ensure that they receive enough fees. Converting your coin into an altcoin is the best option for lowering fees and speed, as bitcoin currently has extremely high fees and traffic.

Dread Pirate Roberts

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Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

The bitcoin fee on the exchange does feel very high . because the average exchange uses a fixed fee. and the high bitcoin price affects the total fixed fee as well. and I think this applied on many exchanges . except in your own wallet. maybe the best way to avoid this thing happen again to find out how to withdraw altcoin to your currency. because altcoins have much lower fees. such as LTC its less than $1

Blawpaw

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Quote from: jackg on October 04, 2021, 11:35:29 PM

Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

I normally just convert my coins to another currency on an exchange as they'll try to steal whatever they can anyway (0.0005+ btc transaction fees are quite unreasonable). If you can't work out a good currency to covert to, I normally use Litecoin for low fees and high acceptance/liquidity from other exchanges.

Yeah, I normally use LTC as well, but before all the dogecoin craze I would always use Doge to move coins from an exchange. In terms of speed and cost of transactions fees, Dogecoin was awesome. Now, I simply use LTC as it is fast and less costly. Remember that Exchanges are businesses that run for profit so they will always get their share. If there are none or close to no trading fees, then exchanges will surely have an expensive withdraw\deposit fee, that is simply how they work.

dothebeats

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This is the reason why I try to seek for p2p options when I want to convert my coins into quick cash. Some exchange platforms already have this, and they are IMO quite reasonable as opposed to the fees imposed by the platform itself. Also with it, the ones who will send the funds to my bank account would be a singular entity, and not a huge organization or a company which will surely follow with some questioning on the bank’s side as to the nature of the transferred amount.

Binance has a good P2P platform embedded within the exchange, though there will be times wherein the exchange rate is against you, but when compared to the fees imposed by binance, it is more economical and faster, too.

Dewi Aries

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Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

If this is the scenario surely then we can't make a plan with what is available in the wallet.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

Maybe my question is, in where you change your bitcoin to fiat and it is an exchange or p2p. Because if p2p and only accept btc, maybe you don't have any choice. But if there are some coins allowed, pick on USDT can be alternative. Because some chain only cost $1 of USDT to withdraw from exchanges. For example, my local exchanges allow some coins, when i withdraw from binance i use USDT on BSC or TRX network with only $1 fee.

tyz

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It basically determines an oligopoly of crypto exchanges and accordingly there is no real competition, which explains the high fees. However, there is more and more progress in the development of atomic swaps, i.e. transactions directly from one blockchain to another. This is the future of crypto trading anyway in my opinion. Moreover, it will be much cheaper because instead of three transactions (deposit, exchange, withdrawal) there will only be one and also more secure, as the intermediary (crypto exchange) will be eliminated.

jackg

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Quote from: Bttzed03 on October 05, 2021, 05:25:09 AM

Quote from: The Sceptical Chymist on October 05, 2021, 04:42:04 AM

Quote from: jackg on October 04, 2021, 11:35:29 PM

I normally just convert my coins to another currency on an exchange as they'll try to steal whatever they can anyway (0.0005+ btc transaction fees are quite unreasonable). If you can't work out a good currency to covert to, I normally use litecoin for low fees and high acceptance/liquidity from other exchanges.

Since OP didn't explain how he was going to convert crypto to fiat, it's hard to say whether converting his TRX to a coin with a lower withdrawal fee would have helped him, but I certainly see your point. We'd kind of have to know which exchange he was using to withdraw fiat and whether a LTC-->fiat conversion is possible on it.

I would assume that his local exchange/custodial wallet only supports BTC to their country's fiat currency conversion. That was also the same case with us a few years ago until other cryptocurrencies with cheaper tx fees such as XRP were added.

I'm not sure on the security standards, and you need tor, but there's also bisq which mightve been a better option for op.

I've used it before for the same thing and I think I remember the system acting like a wallet so you can withdraw funds and set your own fee - I think the limit on altcoins was high as I converted over 20 ltc to ~0.1btc (but this is just how I've remembered it and don't really want to go back to installing tor).

AicecreaME

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Quote from: Vaskiy on October 04, 2021, 11:31:31 PM

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

If this is the scenario surely then we can't make a plan with what is available in the wallet.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

The exchangers really have high fees most especially if you're going to withdraw BTC. I suggest you look up altcoins to convert it first before going in fiat. Personally, I use XRP because it has a relatively low gas fee compared to other coins. You can also check from time to time when is the best time to withdraw that has a lesser gas fee. Usually, it's around midnight during the weekends. Although it still varies. Hope this helps. You can check few articles about it too to make yourself more educated. Transaction fees are a pain in the ass, I feel you. Instead of having a bigger amount, the amount you can withdraw will be lesser because of gas fees. Because of course, the platform needs to profit as well. I just find it too much sometimes.

Topic: Why exchanges are charging a big amount as transaction fee on withdrawal - page 2. (Read 350 times)