Bitcoin Forum

I have a question about coinbase fees, They always charge me 0.0002 BTC for every transaction i send, Is this the bitcoin fees because they claim its bitcoin fees but not their fees? If it is true how come freebitco.in send 5460 Satoshi? Today i had to send 5000 satoshi to a DR and they charged me 20000 satoshi for just sending it? Any other wallet with low fees or this fee is applied by bitcoin?

There are actually not coinbase fees. This is given to the miner for keeping the network secure. You would have this issue regardless of the faucet you use.

try blockchain.info
you can send bitcoin with custom fee with their custom send feature
but below 10000 satoshi is not recommended.
coinbase fee higher because i think they need send to another address (forwarding address)
my suggestion : just leave coinbase ;D

about freebitco, they send many addresses in one transaction
so, they can send minimum amount like 5640 satoshi. just see their tx details

The min transaction fee is 0.0001 / KB, but some sites pay a higher fee to make the transaction go through faster.

For example, I made a withdrawal on 777coin a few days ago, and it costs me 0.00025 (and after checking TxID, the tx does actually have 0.00025 fee attached) and so 777coin has no benefit from it. :)

The buy and sell fee are usually less than 1 dollar based on my experience.

That's weird, my Coinbase wallet doesn't charge me any fee when I send, and they actually pay them themselves.

Are you sure they don't charge you any fee? I think this happens when the transaction in low btc value. I had a experience like this.

If they dont charge fees then where do they get profit from

They charge a fee when you make a US$ deposit to buy bitcoin.

They also have a "vault" service which, I believe, charges fees.

They charge a small transaction fee and a small bank deposit fee. Think the total is less than 1-2% of your transaction.

Exchanges make profit for trading fees mainly, and also from fiat going in and out. Without charging the customer for withdraw fees, they may get more customers to trade.

And since they are relatively new, it's more important for them to build trust and loyalty from customers rather than being immediately profitable, so not charging withdrawal fee is a good choice.

It does cost more they claim it adds even more security to your account.  You would have to sign up for it so you would know about the extra fees.

its called a miners fee, for finding your coin.

its universal as long you use bitcoin.

I was under the impression that coinbase covered the miners fee in most cases. It is possible that this has recently changed, although it was the case in the past.

The fee the OP is referring to is the fee that is paid to the miners for confirming the transaction on the network. It is what gives the miners an incentive (apart from the block subsidy - currently at 25 BTC per block) to mine (and secure) on the network.

well transaction fee is 0.0001 in most sites, so they are charging up like twice for you.. anyway most online wallets or exchanges do that.

They are really not "charging" this but rather giving the amount to the miners. They are essentially forcing you to pay to ensure your TX will be confirmed quickly. The larger your TX fee is, the greater the incentive miners have to confirm your TX in their block.

This is true. This fee that coinbase "charges" you would be "charged" to you regardless of the wallet service that you use, although I thought that they were covering the TX fee in most cases (this may have changed, IDK). If you were to try to send a TX without a fee then you would likely have to wait 13+ hours for it to confirm if it is to confirm at all, and if it does not it would be a huge headache to get your wallet to reflect the fact that the TX did not go through (in most cases)

They don't charge withdrawal fees because they want customers moving BTC in and out of their account (as well as storing their BTC in their for daily and non-daily transactions, which is where Coinbase Vault comes into play). This BTC movement increases the customers' likelihood of using Coinbase to buy/sell BTC. It has nothing to do with reputation and I would consider them pretty damn well-trusted in the community. They're making more money by not charging a withdrawal fee than they would otherwise.

They may keep half of that transaction or maybe they pay it in whole to the miners (in form of a transaction fee). I don't know the exact structure of Coinbase's fees! I guess faucets and freebitco.in may send multiple transactions to several receipients at once, and thus save on the transaction fees? Could this be right?

Those are miner fees, they get profit from charging of US deposits and buying and selling.

Yeah, I guess such small fees won't really get their business going. They will want to depend on relative fees, that adjust according to the amount of BTC you buy or sell there. A fixed amount per transaction doesn't seem to make much sense! They pay a miners-/transaction fee so the transaction goes through quickly!

Yeah, they have to pay the miners fees, so the transaction goes through smoothly without a delay. Some services also take a small fee themselves, so people don't abuse their system and withdraw 500 times a day.