Bitcoin Forum

Why it's so that at the time of cash out these fees and stuffs are deducted.Is it necessary?

Yes off course it is necessary. Your fees are break up of few things which are mostly mentioned in the FAQ section of each exchanger, wallets or from whatever you are cashing out.

For all the wallets and exchangers when you send the coins over the network then specific fee is taken on the behalf of miner, called as miner fees. This is not credited to the service provider but given to the miner itself.

When you do any kind of conversion within two currencies over the exchanger then the fees are taken for exchanger itself.

When you cash out from your wallet to the bank then specific fees are taken called as withdrawn fees. These are for the service provider itself as commission or any other way you call it.

Yes its necessary as they have run the business.  :P

ofcourse its necessary or else how can we give incentive to those miners or stakers?. but whats good is its just small price compared to those banks fees

In comparison to what wire transfers and PayPal fees, bitcoin and other cryptocurrency have way less fee. Another good thing about bitcoin is that the fees would be same if you send $10 or $1000(given the inputs and outputs are same). And as boyshx said the fees(mostly the trading fee) taken by exchanges is their main source of income.

So if you owned a cryptocurrency exchange website, how would you make money out of it? Let's make it clear, you are not here to do some social service. The cost of servers, domain, employees is huge and there has to be a way to deal with such costs, right? That is what fee does for you. If the fee becomes zero then the company would run in huge losses and no company can thrive business like that. So these minor fees are necessary.

Everything is not free you know. I think that fee is for the miners as well for their hard work of maintaining the system.

All things had its corresponding price and as you said theres nothing free on this world already. They do need money for the sake of profits or even just a little pay for their service that they do gave ex. miners, and if you are running a business then you would normally charge up small fee too because on this way you would able to make money.On my side this thing would really be necessary and no people would really make things for free or they wont make any benefit.

The deduction of fee let's you enjoy all the services that you do, it's like asking why banks demands fee and all, if you use any service then you have to pay for it and this minimal fee that they demand helps support the wallet or the site you are using other than that many wallets also pay taxes alongside the fee..while you cash out .
Also operating this network is not something that's been done for free.. and it cannot be done for free.
The miners also have a role in it ..there are just too many things  that needs to be paid .

What do you think? Crypto services are free? if you don't want to pay some fees then you shouldn't cash out or look for someone that are willing to transact to you without any fee.

I think the fee must exist, because we use the services of others, so that way people will provide good service. however this is a business and there are calculations in any movement

Of course yes if you use the platform they need put a fee mostly in exchanges if you really search about cryptocurrencies you need to know that if you use some exchanges there's a fee to deduct. It's normal if you use their service and this day nothing is free.

Of course it is necessary, when we transact a cryptocurrency miners are the one who verify or confirm the transaction you have made and for miners to do that effectively, they need a lot of resources such as electricity and efficient hardware, you have to understand that cryptocurrencies are decentralized so there is no central entity that is responsible for processing all the transactions, and no one will do it for charity, of course people will mine what is a coin that will give them the most profit. It is like transferring money using banks but in a cheaper and fastest way so there is no need to protest for this.

I will call that as a compensation for the miners who will mine the blocks for your transaction. If there is no any fee for the transaction, miners will not mine any more. The result, transactions in peer to peer network will not be made.

Cannot believe someone is asking why fees are charged! If you have ever used money before, or any services with digital payments, you must surely have paid fees. Banks charge you fees. ATMs charge you fees. So must exchanges and sites that process your withdrawals. Even miners want their fees. Services. You want to use them, you must pay for it, yes?

The only way to keep this zero or even low is using atomic swap on the zero fee cryptos, the way I see it :)

So you want someone to work with you for free.These are the charges collected for their service what they have given to use if is in exchange or we are deducted transaction fee for paying the miners.

That's what I'm saying. All services are free but there are promo's that fees were discounted and in terms of cryptocurrency. You want to cash out, convert your crypto > cash so what you are expecting? It's going to be for free? Are PayPal money are convertible and transferable to banks without any fees?

Of course, its business, one way or another company needs something to support them. So it you are using a exchanges to trade and then withdraw them, you are deducted a certain fee to cover expenses like usage of their platform.

The fees are not that high though, compare to traditional banking system and it takes like a couple of minutes to a hour to see the funds going to your wallet. So to answer you yes, its necessary.

What kind of question is that, is he expecting everything to be free? Miners spend fortunes on equipment so this guy can get a free ride?

Well, this guy has no knowledge yet about he expects a free of charge all throughout the transactions in the exchange. It should have fees were they can atleast earned money in this exchange even miners.

I'm not even sure he's talking about exchanges, not transactions out of his wallet. I think I could understand if a total newbie asked why later ones are deducted, but exchanges, jeez... Why doesn't he ask the same question at his local bank when he sends a wire?

The fees that are being deducted in every transfers or cash outs are payments to miners along with the cut of the platform. For your question as to if it is necessary it is because of the decentralized nature of this market, so any kind of work and calculations in every transfers or cash out at the platform and wallet that you are using. Without this structure then this market will not run properly and might need to have a centralized people to work to the platform.

These expenditures are necessary, and these expenditures are necessary for block chain maintenance!

Because the miners' income in the blockchain is the expense of mining.

Nobody will offer free service, if you using any service you have to pay fee or commission or else how can that company will make revenue. Suppose if you do any transaction in the bank you have to pay service charge am I right? like that exchanges also collect a fee from you for your every transaction. to deposit, there is no fee in many exchanges but to withdraw you have to pay little amount.

Base on your post history, you have basic knowledge about cryptocurrency and you even believe that it will make you rich so I don't think your a newbie anymore. The logic is very easy, it's like you wanted something to drink on the street and you know that you can't drink if you can't pay the amount. The same with bitcoin transactions, you have to pay the miners in order for your transaction to move on and becomes confirmed.

Yes because obviously, you are using their services. And these companies that are doing their job so that you can cash out and use your cryptos or turn them as fiat are paying hundreds of workers and other partners just to keep their companies running and be able to give services to people like you who complain why they charge fees and all. Just try to put yourself in their shoes, would you be going all through that effort in making those things possible for users like you if you won't get anything from it? I think not. And if you would, then man, your a saint.

If u get everything free then their will no taste and valuation.That's the achievement so costly is more valuable.If there is no fee then your transaction will loss its legality,prove and protection.What will happen to those who engage in this work.So deduction of fees and stuffs are necessary.

There is a saying that there is nothing free in the world. We are on trading and transactions which involves earnings and money and all, which I think is just to have some fees for those who have initially risked capital for us to earn.

Yes fees are necessary. The miner needs motivation to mine. We may call it transaction fees but really, they are mi ers fee. These miners gets money to solve blocks, if not, who will then want to mine. Every transactikn, the miner is the one who will solve it

Obviously there's should be a transaction fees and others stuff are deducted once in trading is done because they are using there service and security protocol for the safe of customer and also its a business which they are paying taxed to the government to make licenced to operate and its care.

 Fee are use to make a exchanger long life or live. Exchanger also is a bussiness they will just wait user or investor cashout there money. Then instant 0.001 btc. But for me i think its okay that they have deduction its only a few amount in your money

yeah you are right , online exchangers is like a business because they do also have a capital to start that business and they do also pay for the fees , that is why they also charged whom ever who uses their service.


that is not what you call a motivation but rather that is a fee for the miners in order to process your transaction. miners do also have the right to reject or approve your transaction and it will still depend on the fee that you put up.


of course there is. there is always a free money . Like for example working here on the forum. you can always get free coins as long as you work on it.  I guess that is somehow considered free because working on those task is kinda bit easy.

fees are optional when you use good written wallet you can have full control over it.
Exchange platforms and other sites are not social welfare organizations, they need these fees to manage their business so they are deducted from you when you send, receive or both  in return for providing service to you.
So you'll find these drawings/fees different from one site to another but not releated with bitcoin. Bitcoin has a fee when sending only and depends on input/output only "may be same fee when sending 100$ and 100,000$"

There reason is that here isn't any assurance that price will go deeper than you expect. So that's better to hold your coins, don't lose by selling on very low price, like it is now

Absolutely. I am having such headaches back then. Believe it or not I am having more than 5 transactions before I could cash out my coins from an exchange. So much fees or funds I've made. But of course, that is where they are earning. From the transaction fees, converter fees, exchange fees and transfer funds. I'm getting used how that cycle goes, though.

And yes, it is necessary. Without fees, there will be no miner's fee, no earnings from different wallet and exchanges

I wouldn't be so sure that you're paying less fees than you would with bank transfers. Sure, if you're just looking at the miners fee, maybe.
But once you start factoring in fees from exchanges, you could very well be paying more than you would on bank transfers.

I'm also used to using Sepa for bank transfers within Europe, which is essentially free.

Well we cant expect $0 fee for transactions. When you send money using paypal or moneygram or wire transfer there will be fees charged to you. In the same way, fees are charged for transacting business in the exchanger. Also, miners are given part of that fee as well. But if you compare it to the later, the fees are way much lesser.

yes it is really necessary, since where doing transactions means their is fee included to it and i think exchanges fee's of coin is way lesser than paypal or wire transfer of money.

These fees and other stuffs are helping to run this community without this there will be no profit for workers who work hard to process your transaction. These fees are considered as rewarding system for users who help the system to run smoothly. Just imagine if there is no fees, hence no miners will get paid. So, why will miners spend so much money and receive nothing. Mostly bitcoin fees are genuine but there should be regulations upon exchange fees which charge according to their wish.

There's no free transaction today before it was possible when the network isn't experiencing traffic but today, we have to comply and pay centavos for your transaction to move on.

It won't hurt you to pay $0.1 - $0.5 for transferring worth $1,000 of bitcoin.