Exchanges and network fees

[nick9995]

Networks, ie. Bittrex charge a fee on each trade.  They also charge a withdrawal fee (and maybe a deposit fee?).

Are network fees also charged on a trade?  For example, I trade Ether for XRP and on Bittrex I pay their fee of 0.25%.  Does the trade also subtract a network/blockchain fee the same as what you would pay sending bitcoin from one address to another?

Every time I search 'exchange' and 'network fee' I just find pages detailing the exchange fees.

How does an exchange work? ie.  is there an intermediate currency like USDT?  Does it go Ether --> USDT --> XRP?

[AdolfinWolf]

Networks, ie. Bittrex charge a fee on each trade.  They also charge a withdrawal fee (and maybe a deposit fee?).

Are network fees also charged on a trade?  For example, I trade Ether for XRP and on Bittrex I pay their fee of 0.25%.  Does the trade also subtract a network/blockchain fee the same as what you would pay sending bitcoin from one address to another?

Every time I search 'exchange' and 'network fee' I just find pages detailing the exchange fees.

How does an exchange work? ie.  is there an intermediate currency like USDT?  Does it go Ether --> USDT --> XRP?

No, Bittrex/Poloniex are centralized. These currencies never leave their platform when trading between them, unless you withdraw them from their site, ( that's when they enter the network).

So every transaction a user does on their platform, let it be BTC -> XRP , is offchain, and you're completely dependant on ( in this case) bittrex, to give you the right amount of ripple.


But i assume that they are indeed using the maker/trader fees to pay for the on-chain transactions and their servers.

[nick9995]

Awesome! Thanks that answers my question!

[cyber_smiley]

Networks, ie. Bittrex charge a fee on each trade.  They also charge a withdrawal fee (and maybe a deposit fee?).

Are network fees also charged on a trade?  For example, I trade Ether for XRP and on Bittrex I pay their fee of 0.25%.  Does the trade also subtract a network/blockchain fee the same as what you would pay sending bitcoin from one address to another?

Every time I search 'exchange' and 'network fee' I just find pages detailing the exchange fees.

How does an exchange work? ie.  is there an intermediate currency like USDT?  Does it go Ether --> USDT --> XRP?

AdolfinWolf pretty answered your question there, you might want to check Binance for trading, I do believe that they have lower fee like 0.1% per trade + they have all pairs with ETH which can be good to switch to specially if you are transferring your money frequently until we get Ligthing Network adoption next year.

[zzHQzz]

Networks, ie. Bittrex charge a fee on each trade.  They also charge a withdrawal fee (and maybe a deposit fee?).

Are network fees also charged on a trade?  For example, I trade Ether for XRP and on Bittrex I pay their fee of 0.25%.  Does the trade also subtract a network/blockchain fee the same as what you would pay sending bitcoin from one address to another?

Every time I search 'exchange' and 'network fee' I just find pages detailing the exchange fees.

How does an exchange work? ie.  is there an intermediate currency like USDT?  Does it go Ether --> USDT --> XRP?

AdolfinWolf pretty answered your question there, you might want to check Binance for trading, I do believe that they have lower fee like 0.1% per trade + they have all pairs with ETH which can be good to switch to specially if you are transferring your money frequently until we get Ligthing Network adoption next year.

Question about binance -  they have 50% less fee when trading in BnB and so for example i'm going btc/bnb bnb/gto i still have to pay the same fee at i'd pay with btc/gto is it correct?

[nick9995]

AdolfinWolf pretty answered your question there, you might want to check Binance for trading, I do believe that they have lower fee like 0.1% per trade + they have all pairs with ETH which can be good to switch to specially if you are transferring your money frequently until we get Ligthing Network adoption next year.

Fudge... I just wrote a program wrapper for Bittrex API.  Well I'll stick with them for the moment and see if my trader bot makes any gains.  0.25% does not sound like a lot but 0.1% will mean a few more bucks saved every trade...

[cyber_smiley]

AdolfinWolf pretty answered your question there, you might want to check Binance for trading, I do believe that they have lower fee like 0.1% per trade + they have all pairs with ETH which can be good to switch to specially if you are transferring your money frequently until we get Ligthing Network adoption next year.

Fudge... I just wrote a program wrapper for Bittrex API.  Well I'll stick with them for the moment and see if my trader bot makes any gains.  0.25% does not sound like a lot but 0.1% will mean a few more bucks saved every trade...

As I understood, with binance you have to have some holdings in BNB for you to have that discount and this 50% will turn less in coming years + have in mind that binance will slowly be buying those tokens to reduce the supply (because with BNB they have been founded through an ICO)

Some things to read:

https://support.binance.com/hc/en-us/articles/115000583311-What-deductible-fees-does-BNB-charge-
https://steemit.com/crypto/@therealwolf/bnb-and-binance-explained
https://www.reddit.com/r/binance/comments/7jkssk/using_bnb_to_minimize_trade_fees/

[ArxOn]

$24.85 fee for 100 eur worth of BTC from Coinbase to Bittrex... Not gonna happen

[cyber_smiley]

$24.85 fee for 100 eur worth of BTC from Coinbase to Bittrex... Not gonna happen

It's actually not real problem on coinbase end, Bitcoin network is taking huge overload atm because many people are sending transactions which as a result has higher fees than ordinary. Coinbase could split that they pay some part of fee and users other but who lieks losing money.

If you are entering crypto currency just to make pure profit I will advise you to buy then Ethereum for instance as some exchanges are trading with ETH pairs which is faster and more convenient in terms of fees. You will need to wait some time before some measures are activated on bitcoin that should solve this issue - it is worked on but development is slow and takes time since when you are dealing with money you want to do it right.

[sward1550]

I notice yesterday Coinbase fees went through the roof too. Was going to pay for a debit card only $10.00 and they tagged on a $20 fee. I canceled the transaction. Was the same when i transferred  $200 of bitcoin to another company not Bittrix. Are you saying this is not Coinbase charging that? Still wrapping my head around all this. I feel like my bitcoin is now stuck on Coinbase until it goes up enough to cover the absorbent transfer fees?      I understand once lightning is in place the fees should go back down? Any clarity on this would be helpful.

And while I am here. I have many coins on Bettrix but understand I should not keep them there. I plan to let them ride awhile but can't seem to figure what the best wallet is to keep many different coins in. Or do I leave them there till ready to sell convert to bitcoin or ETH. Then move to a debit or back into fiat somehow.
 Bittrix quit trading TKN now I have 100 TKN's on there and can't figure out how to get them. Opened a Livecoin account to try and send to but that was why I ended up here. Not sure how to send coin to coin transfers.

[zzHQzz]

AdolfinWolf pretty answered your question there, you might want to check Binance for trading, I do believe that they have lower fee like 0.1% per trade + they have all pairs with ETH which can be good to switch to specially if you are transferring your money frequently until we get Ligthing Network adoption next year.

Fudge... I just wrote a program wrapper for Bittrex API.  Well I'll stick with them for the moment and see if my trader bot makes any gains.  0.25% does not sound like a lot but 0.1% will mean a few more bucks saved every trade...

As I understood, with binance you have to have some holdings in BNB for you to have that discount and this 50% will turn less in coming years + have in mind that binance will slowly be buying those tokens to reduce the supply (because with BNB they have been founded through an ICO)

Some things to read:

https://support.binance.com/hc/en-us/articles/115000583311-What-deductible-fees-does-BNB-charge-
https://steemit.com/crypto/@therealwolf/bnb-and-binance-explained
https://www.reddit.com/r/binance/comments/7jkssk/using_bnb_to_minimize_trade_fees/

Thanks
tldr: if you have to pay a fee for any transaction and have some BNBs on your account - you can select to pay with BNB's with 50% discount (for next 6 months, then 25%)