Why the transaction fee hike on ORDI?

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Quote from: Pi-network314159 on December 24, 2023, 04:51:02 AM

Quote from: Zaguru12 on December 23, 2023, 02:00:49 AM

I will advice you to pay attention to the network address you’re receiving a coin to and be sure it same with the one you’re sending from, because if you’re sending and receiving from different networks then your coin will be lost for ever

just like this bitcoin network I selected as BNB smart contract bep20, on binace where to receive it I also need to select BNB bep20 just like this my binace recipient address I need to chose the number 2 which I have labeled

but if I what to chose the first bitcoin network I will also chose same in my mexc if not it will be sent to a wrong address despite its still bitcoin. so changing its network automatically turns the bitcoin to wBTC.

You can't send BTC to BEP20 address or vice versa, so you need to have wBTC if you want to deposit to an exchange but withdrawing varies from exchange, they might consider all as BTC but you can only withdraw them to the BNB address not to your segwit or legacy. It means you can't have any choice if you want to move your BTC on BTC network or you can choose these so-called BTC tokens on different networks which may not exists the next day. Cheesy

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Quote from: Despairo on December 24, 2023, 08:46:47 AM

Quote from: pakhitheboss on December 23, 2023, 08:44:07 AM

He is using WBTC on the Binance smart chain BEP20 which is not Bitcoin, it is an altcoin.

Quote from: lionheart78 on December 23, 2023, 06:14:58 PM

Sending WBTC to another exchange is a way to minimize transaction fees. Since it is in BEP20, the user can minimize the transaction fee

There's no such WBTC on BSC network since WBTC is a dedicated token that run in ETH network. If you use Bitcoin that run in BSC network, it's actually BTCB.

Thanks for enlightening me with your theory of There's no such WBTC on the BSC network since WBTC is a dedicated token that runs in the ETH network.. It proves you haven't understood how BSC came into existence and why I wrote WBTC is common on most blockchains.

Sometimes replies like these could be ignored but looking at your rank with a campaign you certainly have to know the basic difference between Bitcoin and Bitcoin tokens. It is now evident that you would like to argue with me about what should a cloned token be named. I am not sure how to put this up to you but I have been here for some time now and I feel you should understand where the Bitcoin cloning token started and why I gave a generic name. You will come up with the question why WBTC and why not anything else, please do your research before every other was called WBTC and why it is not being named the same.

Despairo

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Quote from: pakhitheboss on December 23, 2023, 08:44:07 AM

He is using WBTC on the Binance smart chain BEP20 which is not Bitcoin, it is an altcoin.

Quote from: lionheart78 on December 23, 2023, 06:14:58 PM

Sending WBTC to another exchange is a way to minimize transaction fees. Since it is in BEP20, the user can minimize the transaction fee

There's no such WBTC on BSC network since WBTC is a dedicated token that run in ETH network. If you use Bitcoin that run in BSC network, it's actually BTCB.

Quote from: Pi-network314159 on December 24, 2023, 04:51:02 AM

but if I what to chose the first bitcoin network I will also chose same in my mexc if not it will be sent to a wrong address despite its still bitcoin. so changing its network automatically turns the bitcoin to wBTC.

Remember, both Bitcoin and BTC(SegWit) are actually same, segwit is a soft fork and it's compatible with the original Bitcoin chain. So don't get tricked by Binance since they make it separate.

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I have this mind thoughts that ordinals can bring people a lot of money in the next two years and I do want to get some brc20 tokens but I am shocked with the transaction fee of withdrawing them from an exchange, it's massive than trying to send Bitcoin from one wallet address into another wallet address, today I saw a brc20 project with power management utility and I decide to risk some money, I was asked for $65 as the withdrawal fee from the exchange (kucoin).

You people investing in this side of the crypto space how are you doing it? The transaction fee is enough to piss you off, and only God knows how the bull market transaction fee will look like, because of this nonsense I have decide to abandoned any Bitcoin Ordinals project when if they are so good, I don't care anymore.

Pi-network314159

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Quote from: Zaguru12 on December 23, 2023, 02:00:49 AM

I will advice you to pay attention to the network address you’re receiving a coin to and be sure it same with the one you’re sending from, because if you’re sending and receiving from different networks then your coin will be lost for ever

now I understand fully what you mean

just like this bitcoin network I selected as BNB smart contract bep20, on binace where to receive it I also need to select BNB bep20 just like this my binace recipient address I need to chose the number 2 which I have labeled

but if I what to chose the first bitcoin network I will also chose same in my mexc if not it will be sent to a wrong address despite its still bitcoin. so changing its network automatically turns the bitcoin to wBTC.

Out of mind

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The reason for ORDI's high trading volume is that it is a token of the BRC20 platform. This coin is mainly compared to Bitcoin, which is why when Bitcoin goes higher, it goes higher. And when Bitcoin's transaction fee increases, ORDI's transaction fee also increases. If you withdraw from any exchange of course it will deduct the same transaction free but often a reduction.

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Quote from: lionheart78 on December 23, 2023, 06:14:58 PM

Wrapped Bitcoin tokens can always be converted to Bitcoin. Sending WBTC to another exchange is a way to minimize transaction fees. Since it is in BEP20, the user can minimize the transaction fee. Who would love to pay 0.0005 BTC (BTC network transfer) or $21 at the current conversion when they can pay just $1 (Bep20 using WBTC) during the exchange transfer? I would agree with you if the owner wanted to hold Bitcoin and withdrawn it to his non-custodial wallet, but during exchange transfer, I think using WBTC to minimize withdrawal fees is a practical approach.

Yes you are wright , apart from the watch, I think there are other coins to by that will reduce the transaction fee, there is also need to convert it to BNB, TRON, LTE COIN for transfer instead apart from using (WBTC) because the ones I listed is more cheaper than wbtc. After sending to another exchange using bnb smart chain network then you can change it to your desired coin.

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Aside from the fact that Bitcoin Network is clogged in recent times, each exchanges have their own fees attached for withdrawal of assets and the bad thing about this is that the transaction fee is fixed and can't be negotiated further or modified unlike a non-custodial wallet. My thesis for transaction fees for withdrawal of ORDI being greater than BTC fees is due to the fact that ORDI is a token on the network. This could be likened to how native ETH on Ethereum network costs way less thsn tokens in a transaction.

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Quote from: OcTradism on December 23, 2023, 03:53:00 AM

I agree that checking information, withdrawal fee, on chain transaction fee and compare those information before broadcasting your transaction by yourself from your own wallet or submit your withdrawal request on a centralized exchange, is a good practice.

However I see one of your screenshot is for BTC withdrawal on BEP20. It is not good.

If you want to withdraw BTC, do it on Bitcoin blockchain. If you want to have bitcoin, buy bitcoin, don't buy any Wrapped Bitcoin tokens because they are altcoins, not Bitcoin.

Wrapped Bitcoin tokens can always be converted to Bitcoin. Sending WBTC to another exchange is a way to minimize transaction fees. Since it is in BEP20, the user can minimize the transaction fee. Who would love to pay 0.0005 BTC (BTC network transfer) or $21 at the current conversion when they can pay just $1 (Bep20 using WBTC) during the exchange transfer? I would agree with you if the owner wanted to hold Bitcoin and withdrawn it to his non-custodial wallet, but during exchange transfer, I think using WBTC to minimize withdrawal fees is a practical approach.

Quote from: Mpamaegbu on December 23, 2023, 03:52:33 PM

This scrutiny you mentioned on tx fee shouldn't even be only on exchanges, we ought to observe it with our private wallets. Recently, I made a transaction and chose a custom fee, didn't remember to ok it. It reverted to low priority or something but I didn't know and I sent it. I realized my error as soon as the coin showed it had gone through and it was already late by then. The huge fee I paid hurt me for days. Imagine someone paying 3 Ordi ($150+) for a transaction they could do with less than a dollar.

Transaction fees have been really crazy these past days, they even surged to more than $100 but gladly the tx fee price toned down to less than $10 now, the priority tx fee price is around $7.91(130sat/vB) as of this writing.

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Quote from: Pi-network314159 on December 23, 2023, 01:46:45 PM

Yes I know about that. There are different options but the BNB smart Chain network is more reliable and the fee is less.

In terms of being reliable, what do you really mean by that? Like, what criteria do you use to rate and give such credit?

As far as I'm concerned, I don't trust any other network. I might use them temporarily, but saying they are reliable is like giving them my 100% trust, which I can't even do at all; centralised coins are not to be trusted.

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This scrutiny you mentioned on tx fee shouldn't even be only on exchanges, we ought to observe it with our private wallets. Recently, I made a transaction and chose a custom fee, didn't remember to ok it. It reverted to low priority or something but I didn't know and I sent it. I realized my error as soon as the coin showed it had gone through and it was already late by then. The huge fee I paid hurt me for days. Imagine someone paying 3 Ordi ($150+) for a transaction they could do with less than a dollar.

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Quote from: Pi-network314159 on December 23, 2023, 01:09:06 AM

As I was trying to do a withdrawal on a Mexican exchange to Binace, I decided to use ORDI instead of the usual BNB to check if the transaction would be less than BNB or tron. only for me to discover that the network fee is 3 ORDI, which is equal to $147 in current price.
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You guys can share your thoughts on this.

This is really shocking that ORDI tokens are based on the BTC blockchain but charging 3 ORDI which is a huge amount to pay for the withdrawal. Actually, if you are using a custodial wallet like the wallet of an exchange, then that exchange will charge an extra amount to cover the commission they charge. Maybe that's why you are getting a high fee, and how can you say the transaction fee is 4 cents as you might be talking about lightning network because the fee on BTC blockchain for a normal network means for a BTC network is around 30 dollars on Binance, and it must be high on Kucoin, Bybit, or maybe on other exchanges, as the rates are different on each centralized exchange?

And keep in mind that BNB and Polygon are some of the many blockchains that cost a lesser transaction fee, and that's why you are seeing a lesser transaction fee on BNB while a huge transaction fee on ORDI because ORDI is based on BTC blockchain. But indirectly, as these transactions are inscribed on BTC blockchain using Ordinals therefore the fee is higher in compared to the BTC fee.

jossiel

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BEP20/BSC are truly cheap in fees and there's no argument with that. But if you're going to withdraw Bitcoin into that chain or network then it's just another altcoin.

I know that the price and value could be the same but the thing that matters is about in which network it is staying and you're taking. I can't blame you with that if you're withdrawing bitcoin in that chain because it's saving you fees.

And with these ORDIs and SATS, I just hope that this craze will stop asap as they're affecting the fees madly. We can no longer do simple transactions nowadays and many still don't know yet about lightning network.

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Quote from: Zaguru12 on December 23, 2023, 02:00:49 AM

all networks.

I will advice you to pay attention to the network address you’re receiving a coin to and be sure it same with the one you’re sending from, because if you’re sending and receiving from different networks then your coin will be lost for ever

Yes I know about that. There are different options but the BNB smart Chain network is more reliable and the fee is less.

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Quote from: _act_ on December 23, 2023, 04:18:45 AM

It is because Ordi is a BTC20 token. BRC20 tokens are making use of bitcoin blockchain and use bitcoin for transaction fee. They are also responsible for mempool congestion that makes bitcoin fee high.

But in addition, it is good to know that exchanges charges than what the mempool state is. Exchanges charge both the network fee and their own exchange fee which is usually very high.

Yeah but still feels like there must be a solution to this as bitcoin network is highly congested due to this. Imagine a transaction that will arrived few weeks after thats bad.

I think ORDI should migrate somewhere cause I think the bitcoin network cant handle such loads of transactions including those brc20 that has been traded on the market.

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Quote from: Gladitorcomeback on December 23, 2023, 05:49:48 AM

Btc fee = 0.43$ ?? I think you selected other network as normal btc withdraw fee in binance is more than 29$ now.

He is using WBTC on the Binance smart chain BEP20 which is not Bitcoin, it is an altcoin.

Quote from: Pi-network314159 on December 23, 2023, 01:09:06 AM

it is always good to check transaction fee before making a transaction because if you don't check your transaction fee you might loose a lot of fund to transaction fee.

That is correct before processing any transaction on any blockchain it is a good habit to check the fee. If not then accidentally anyone would pay more fees than the value of the crypto. I have not invested in ORDI so I would not know the withdrawal fees applicable, it would be high as they use the Bitcoin blockchain which is facing heavy congestion due to the ordinals.

Quote from: Zaguru12 on December 23, 2023, 02:00:49 AM

As for USDT, the fees are mostly small in almost all networks and it is around that 1USDT for almost all networks.

It is not always 1 USDT for all other blockchains, especially on the Ethereum blockchain. It varies from 1 USDT to 5 USDT depending on the blockchain used.

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Quote from: Pi-network314159 on December 23, 2023, 01:09:06 AM

it is always good to check transaction fee before making a transaction because if you don't check your transaction fee you might loose a lot of fund to transaction fee. just take a look at the price of transaction fee of these coins I listed below on mexc exchange

Absolutely true, My friend once withdraw new token worth 20$ from Bitmart exchange where fee was more than 10$. He doesn't checked withdrawal fee at the time of transaction and then ask me that he received low payment but when I checked fee then I told about the fee issue. Sometimes due to network congestion or any other issue exchanges make changes in fee and it's better to check fee weather from exchanges or wallet.

Quote from: Pi-network314159 on December 23, 2023, 01:09:06 AM

as I was trying to do a withdrawal on mexc exchange to binace, I decided to use ORDI instead of the usual BNB, to check if the transaction will be less as BNB or tron. only for me to discover that the network fee is 3 ORDI which is equal to $147 in current price.
I also checked BTC, it was 0.00001sats which is approximately 0.43cent. transaction fee . I also checked USDT and the price was $1 for transaction fee I started wondering why it's so high compared to bitcoin?

Ordinal fee is high due to current congestion of btc network and some other factors we don't know. Ethereum network tokens are also high which is more than normal eth token sending fee.

Btc fee = 0.43$ ?? I think you selected other network as normal btc withdraw fee in binance is more than 29$ now.

Despairo

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Bitcoin that use other network instead of on-chain, L2, L3 is a shitcoin. The real Bitcoin network charge for 0.0011 BTC which is $48 right now.

Why the transaction fee spike on ORDI? because ORDI is hyped right now.

https://www.mexc.com/fee

Quote from: Pi-network314159 on December 23, 2023, 01:09:06 AM

I also checked BTC, it was 0.00001sats which is approximately 0.43cent.

1 BTC = 100,000,000 Satoshi
1 Satoshi = $0.000436
0.00001 Satoshi = $0.00000000436

The important thing you can't send less than 1 Satoshi in Bitcoin network.

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It is because Ordi is a BTC20 token. BRC20 tokens are making use of bitcoin blockchain and use bitcoin for transaction fee. They are also responsible for mempool congestion that makes bitcoin fee high.

But in addition, it is good to know that exchanges charges than what the mempool state is. Exchanges charge both the network fee and their own exchange fee which is usually very high.

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Quote from: Pi-network314159 on December 23, 2023, 01:09:06 AM

it is always good to check transaction fee before making a transaction because if you don't check your transaction fee you might loose a lot of fund to transaction fee. just take a look at the price of transaction fee of these coins I listed below on mexc exchange

I agree that checking information, withdrawal fee, on chain transaction fee and compare those information before broadcasting your transaction by yourself from your own wallet or submit your withdrawal request on a centralized exchange, is a good practice.

However I see one of your screenshot is for BTC withdrawal on BEP20. It is not good.

If you want to withdraw BTC, do it on Bitcoin blockchain. If you want to have bitcoin, buy bitcoin, don't buy any Wrapped Bitcoin tokens because they are altcoins, not Bitcoin.

Topic: Why the transaction fee hike on ORDI? (Read 213 times)