Bitcoin Forum

I was randomly going through Tweets and suddenly I found this from one of the influencers I follow. Pushpendra Singh (https://twitter.com/PushpendraTech/status/1654898123968499714?s=20) posted this image. which I assume is a WazirX app screenshot and I was horrified that a Centralized local Exchange can charge so much as a fee. I am sharing the screenshot below.

https://i.imgur.com/kuobnzrl.jpg

I was unsure why a local exchange asked for such a huge fee. I did question a few friends of mine who Legend (according to me) and they said it is a malpractice that WazirX is known for. They sent me a screenshot of another exchange, Giottus, that had a comparatively low fee compared to the questioned exchange.

https://i.imgur.com/HApAbC7l.jpg

They are only asking for 20 USDT. I think that is still a big amount if someone like me wants to transfer a small amount supposedly 10 USDT. I would get a straight-away decline. Then what are the ways available to transfer Ethereum blockchain tokens at a cheaper price?

Thanks.

All CEX are same buddy! They earn money with these ridiculous high fee and conversion amount. What you shared is not new but remember the current network congestion on Ethereum network is also high. There is a sudden spike similar to Bitcoin, as we know Ethereum follows Bitcoin.

Since, the transaction fees are onthe upside what these exchanges do is very simple to understand. They add the current fee with their platform charge and make it big. That is why you will see a high withdrawal fee for Bitcoin and Ethereum
 

That's totally ridiculous. It's insane to pay that kinda fees for a transaction. I just checked it now and it looks like the fees have dropped.
But it is still a huge amount for fees to be paid for crypto transactions.

Exchanges generally show extra fees when compared to actual transaction fees on the blockchain. May be that's why the fees are so huge.
Who's using Wazirx anyway.

https://i.ibb.co/qstcB8p/62209776.png

As @pawanjain said, majority of the crypto trades from India takes place outside WazirX nowadays and only a very few newbies from India who are absolutely new to the space tend to stick to WazirX for crypto trades. For quite a long time, WazirX has been used only as a marketplace to convert your fiat to low tx fee crypto preferably a centralized L1 crypto such as BNB or a memecoin such as DOGE. Once they have bought these using the shitty INR, they will move their coins to any non-custodial wallets and start trading in DEX or other popular CEX such as Binance/Kraken.

CEXs need to run their businesses, pay their employees, run their servers and to tackle all these areas withdrawal fees along with trading fees are the only ways for them to gain revenue. Hence, that is the reason we used to see ridiculously high fees on local exchanges in comparison to global exchanges. If you do not want to indulge in any legal problems from the IT department or RBI, I would request you to stay away from Indian CEXes for your conversions and use P2P instead.

Huh? 193 USDC As a transaction fee? How much was the withdrawal amount there? Was it for any withdrawal? As far as I know, Kucoin was the worst exchange charging a 25 USDC transaction fee for an ERC-20 withdrawal. That was the max amount I learned so far. ERC-20 Chain charges more withdrawal fees than any other chain. The lowest Transaction fee charges for ERC-20 USDC withdrawal by Binance. It is 3.2 USDC. Also, If you withdraw a small amount of USDC, Coinbase exchange is the best option as they charge 1% of your transaction amount. You can check the image below;

https://www.talkimg.com/images/2023/05/11/Screenshot_3161d93527fba5b9c53.png

But, Charging 193 USDC for a withdrawal is ridiculous.

Note; I do not recommend using any centralized exchanges. I am not from India so I don't know about this particular exchange as well. That's are the stats only that I was aware of.

We can't do anything about this because its their choice to charge whatever amount they want to but still we have the choice whether we need to continue using their service with ridiculous fee or move to better exchanges but don't forget all the centralized exchanges are same and can change the fee at any moment if they want.

As of now its 86 for withdrawing from Wazirx but the actual gas price required for high priority is above 13USDC so they are charging 6x times than actual cost.

Is it same for all the ERC-20 based tokens or just for USDC? I just checked the gas fees you can do a priority next block transaction in maximum $7-$8. $193 is exorbitant for any place. It indicates focus is merely on minting money right now. For you best can be check all the ERC 20 tokens and their withdrawal fees, i have seen low price tokens have lower fees generally. Also I suggest you to go with Trx chain, i have seen it's fees is almost negligible on all the exchanges but obviously not possible if you are transferring to ERC 20 wallet.