Binance Earns More Than $20,000 per Day Overcharging on Transaction Fees

[atjiat]

Traders use the services provided by Binance and in return, Binance charges back. That's a normal practice in any business. If traders have a problem with that, they can always use another exchange or they can also ask help from regulators 

The concern with the wallet is that if they were to change or update a new wallet for it, it's going to be hard. Imagine a large amount of BTC in the exchange itself, and moving and upgrading a wallet would be somewhat interrupting with their business. I don't have the experience with that, but I know it could expose the wallet or something, could there be an exploit when doing that and stealing the funds?

Other major exchanges have already switched to segwit since last year though. It's probably not the priority of Binance right now because they are focused on listing altcoins both on CEX and DEX plus their IEOs or IDOs.

I believe that they really really need to focus on the IEO they support, because their reputation depends on it.  I believe that BNB has also risen in price precisely because IEO has become the best alternative to ico companies.  But there is always a fly in the ointment, because there are companies that do not justify their trust.  Perhaps this is because of the minimum professionalism of the team or because of the minimum demand for the project in society, As an example, the company Harmony.

[mersal]

Binance Earns More Than $20,000 per Day Overcharging on Transaction Fees

If you are a regular Binance user, you are probably well aware that the cryptocurrency exchange charges a 0.0005 BTC withdrawal fee, irrespective of the size of the withdrawal or network fee requirements.

The 0.0005 BTC withdrawal fee is currently around 33 times higher than the average fee required to ensure transactions are mined on the next block.

https://beincrypto.com/binance-earns-more-than-20000-per-day-overcharging-on-transaction-fees/

It is interesting to note as well, based on that article that Binance still uses Legacy wallet as input address that can really ballooned the fees by x amount.

Anyways, it still boils down to business + profit, at the end of the end, those exchanges really needs to find ways to generate and squeeze every penny out of us, crypto traders.

IMO, Binance exchange got the very less withdrawal free compared to any other crypto exchange so blaming it for making huge profit it is not fair where they are making profits from their business and this is the good exchange we have for now compared to others so let them make some profits they are not here for free service.

[error08]

It is interesting to note as well, based on that article that Binance still uses Legacy wallet as input address that can really ballooned the fees by x amount.
Anyways, it still boils down to business + profit, at the end of the end, those exchanges really needs to find ways to generate and squeeze every penny out of us, crypto traders.

This is not a problem with Binance alone all of the exchanges have a very high withdrawal fees and 0.0005BTC is the standard fee and some exchanges even charge as high as 0.0015BTC HitBTC for example and CoinMex has the highest fees 0.002296BTC. There is no one protesting that and so is the reason they are continuing that old fees. If you are looking for free withdrawal fees go to Bitstamp and Coinbase Pro.

To know the complete list of withdrawal fees here is the exchanges and the fees they are charging.

It's not just binance, most crypto exchanges have higher fees than required to transfer BTC, a normal thing because "the fees" is one of the main income exchanges, we can't complain about it.
However, 0.0005 is cheaper than many other exchanges out there. Fortunate for people who trade in some exchanges that cost nothing to withdraw.

[el kaka22]

I can't believe people are defending binance and their shady business operational profits as "they have to make a profit". How can you not realize that they are making profit from the trading fee and that is their business model normally and whatever they are profiting (which is millions, literally) is their honest income they should be getting and they totally deserve.

However, when it comes to making money from peoples withdrawal under the guise of withdrawal fee is literally a profit they are making because there is no rival to them at that regard. Just because others charge more doesn't mean Binance should make 20k profit from just the excess of the fee's. Any of us here would be celebrating like there is no tomorrow if we could make 20k a YEAR, these guys are making 20k PER DAY.

[Ferris419]

This is not overcharged. Show me one exchange which asks lower than 0.0005 BTC per withdraw! All the good exchange takes this amount in BTC for withdrawing and 0.01 ETH for Ethereum. Recently, I am to use yobit exchange, and there BTC withdraws fee is 0.0012 BTC. Can you believe?

[leea-1334]

surprise surprise,,, why is everyone in shock? this is what happens with any centralized exchange, you think they do not want to earn from fees from withdrawals? even localbitcoins charges you for DEPOSIT so you already pay for your input before you even do anything.

50k satoshi by the way is almost 5 dollars. That is too high for me. But everyone still loves binance right?

[Ferris419]

I can't believe people are defending binance and their shady business operational profits as "they have to make a profit". How can you not realize that they are making profit from the trading fee and that is their business model normally and whatever they are profiting (which is millions, literally) is their honest income they should be getting and they totally deserve.

However, when it comes to making money from peoples withdrawal under the guise of withdrawal fee is literally a profit they are making because there is no rival to them at that regard. Just because others charge more doesn't mean Binance should make 20k profit from just the excess of the fees. Any of us here would be celebrating like there is no tomorrow if we could make 20k a YEAR, these guys are making 20k PER DAY.

Binance is the world's largest crypto exchange, they have wallet service, DEX service, academy service and lots more, so, Binance deserve 20K USD, we are just some random people. So, 0.0005 BTC withdrawal fee is very normal for an exchange like Binance. What about oKex, Huobi, and other top exchanges? They ask the same amount. That's why I always withdraw in Ethereum, not by BTC. To convert from Ethereum to Bitcoin, sometimes I take Myetherwallet's service or bestchanger.

[adroitful_one]

I think 0.0005 BTC still cheaper than most of exchanges. We can see minimum fee for withdrawal usually reach 0.001 BTC. And with that, Binance really can maintain their site very well, although get attacked they still can make sure they are reputable. With their services, i think it is worth if we pay that fee.

Yeah, .0005 is actually really cheap these days. If the cost to withdraw is anymore than that, I usually just trade for Doge then withdraw those to another exchange and withdraw the Bitcoins from there. This is what I usually end up having to do on Yobit. Yobit is completely scamming people with some of their fees to withdraw. .0012 BTC, 500 Doge, etc.,