Bitcoin withdrawal fee is damn high in exchanges!

[DaveF]

What are you trying to trade? BTC and fiat or BTC or altcoins? Although centralized exchanges are awful for this kind of thing, even $12 for a withdrawal is a bit much for them. Take a look at this list: https://withdrawalfees.com/coins/bitcoin. There are plenty of exchanges which will let you withdraw for free or only a couple of dollars. All they will ask in return is to know everything about you and for you to upload details of your entire life, copies of all your ID, passport, driver's licenses, employment status, payslips, and tell them why you are buying bitcoin, where your money is coming from, where it is going, and what you are going to spend it on. Oh, and have the ability to freeze your account and steal your coins if they don't like the answers you give them.

Alternatively, if you want to have free withdrawals, want to submit absolutely zero KYC information, and improved security by keeping control over your own coins, then start using a decentralized exchange like BISQ to trade peer to peer with other users.

Is that chart updated in "real time" or close to it.
I don't use exchanges that much, but I have noticed that some do vary the fee. Sometimes it's easy to see why, like many unconfirmed transactions and they usually have their withdraws in a block or 2. Others I think it's just because they feel like it.

-Dave

[1715195196]

1715195196

[rdluffy]

This is a problem that we face everyday: leave the money on exchanges to avoid fees but with some risk, or withdraw to our wallets to keep our funds safe but paying high fees?

I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...

I think this is totally possible

[FlightyPouch]

Obviously so they can earn their money. I am not sure why but there are these sites where you could choose what kind of transaction you want, whether you want a fast one if you are in a hurry or a slow one that still waits for other transactions to complete. If that is a higher fee, that means that those transactions are fast yet, it is expensive.

[Kahan848]

I know this is not applicable to everyone, but I cope with high fees by withdrawing bigger amounts in a less frequent manner

[The Sceptical Chymist]

Centralized exchanges won't survive long without these fees.

That might be true to an extent, but I'd rather pay a higher trade fee than a huge withdrawal one, especially for bitcoin.  Many withdrawal fees for altcoins are much lower, but usually that's not what I want to withdraw from an exchange. 

Having said that, not all exchanges are equal in their fees.  Kucoin currently charges 40k sats to withdraw bitcoin, and while that might not be outrageous, it's still over $4.  Contrast that to Yobit, which I think is 120k sats--that's a ripoff IMO.

[Lucius]

This is a problem that we face everyday: leave the money on exchanges to avoid fees but with some risk, or withdraw to our wallets to keep our funds safe but paying high fees?

I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...

I think this is totally possible

If you want to trade, and withdraw your coins very often, then you have to pay a price for it. As mentioned above, it is not just a fee for sending coins via blockchain, but also a fee for using the service, nobody works for free today, why expect crypto exchange to be someone who will give up profits for the benefit of their users?

I believe that each service has its price, but also that some have high fees. Perhaps superior service entails a higher price, as with everything else we pay or buy. You can buy a new car for, say, $10 000, but you can also buy it for $100 000.

[o_e_l_e_o]

Is that chart updated in "real time" or close to it.

As far as I know, but I'm not exactly an authority on centralized exchanges - I've only ever used one (without any form of KYC, using a throwaway email address and over Tor), and the last time I used it was around 2 years ago. I've never used a centralized exchange for fiat. My primary reason for not using them is that I have no desire to complete KYC anywhere ever for any reason, but when I keep seeing them charging ludicrous fees, being hacked, locking accounts, and other such shady behavior, I'm always very glad that I don't.

Kucoin currently charges 40k sats to withdraw bitcoin, and while that might not be outrageous, it's still over $4.  Contrast that to Yobit, which I think is 120k sats--that's a ripoff IMO.

It's ridiculous when you think about it. When you deposit to an exchange, they will need to make maybe one or two consolidation transactions to move your deposit from the address they gave you to their central hot wallet, and then when you withdraw, that's one more transaction. All the transaction they make are batched, and the consolidation ones can be made with a tiny fee because they are non-urgent. All-in-all, it'll be costing them <1000 sats per deposit to process. To charge 40-100x that is ridiculous.

[Sanugarid]

Centralized exchanges won't survive long without these fees.

That might be true to an extent, but I'd rather pay a higher trade fee than a huge withdrawal one, especially for bitcoin.  Many withdrawal fees for altcoins are much lower, but usually that's not what I want to withdraw from an exchange. 

Having said that, not all exchanges are equal in their fees.  Kucoin currently charges 40k sats to withdraw bitcoin, and while that might not be outrageous, it's still over $4.  Contrast that to Yobit, which I think is 120k sats--that's a ripoff IMO.

Withdrawal with bitcoin is really high because it is dominant than any other coins and you can do nothing about it so if you want to withdraw that bitcoin of yours you should have a lot of it and make some more so you do not care about it when withdrawal time that you want comes.

This is a problem that we face everyday: leave the money on exchanges to avoid fees but with some risk, or withdraw to our wallets to keep our funds safe but paying high fees?

I know that exchanges need to gain money, it's a business, obviously, but why not decrease a little the fees of withdraw? Or at least let the customer choose the best option?
If you want your coins quickly, pay higher fees, if you don't care about the time of a transaction, put a low fee...

I think this is totally possible

If you want to trade, and withdraw your coins very often, then you have to pay a price for it. As mentioned above, it is not just a fee for sending coins via blockchain, but also a fee for using the service, nobody works for free today, why expect crypto exchange to be someone who will give up profits for the benefit of their users?

I believe that each service has its price, but also that some have high fees. Perhaps superior service entails a higher price, as with everything else we pay or buy. You can buy a new car for, say, $10 000, but you can also buy it for $100 000.

That is indeed true, the payment you give is enough for the exchange because if the exchange really gives you a low withdrawal payment, it is also their loss, so consider that it is one of the struggles you should encounter and face it. Make more money, earn with bitcoin so if you withdraw it, it feels to you that nothing happened. Maybe there are some options you can try, as a trader, you must know a technique that you should do so that you can earn bigger. As a trader, you should also look at the easiest and profitable side.

[Pffrt]

Most of the exchanges use 0.0005 BTC as withdrawal fee, I only know about Yobit which charge 0.0012 BTX per withdrawal.
0.0005 BTC is not a big deal I think. However, you can use lihhtning network too in the future, at the moment, there's no top reputed exchange using lightning network.

[hatshepsut93]

This isn't Bitcoin's fault, there's absolutely no need to pay such high amounts for network fees, and exchanges actually don't do that, they keep the difference between their withdrawal fee and actual network fee for themselves. In 2016 withdrawal fees used to be lower, but then they skyrocketed in the end of 2017 during the heights of the bubble, and after that exchanges "forgot" to lower their fees, since they probably noticed that people pay it anyway. They also incentivize people to keep their coins on exchange, so they would be more likely to trade and thus pay their trading fees and make profit for them.

[worle1bm]

The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?

The reason is simple, exchanges aren't meant to be used as wallet. High fees is actually good IMO. It acts as a barrier for those lazy asses who think it is good idea to keep bitcoins on exchanges and send whenever needed. But it can be disastrous.

Also $9-12 you see is not network fees. It is arbitrary fees exchange charges from you. Exchanges rather make batch transactions combining various withdrawal requests in a single transaction. Not a while ago if I remember correctly, Bittrex used to offer free of charge withdrawals. However, with time they raised fees to as high as 0.002 BTC.

[VBTC]

The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?

As a Bitcoin-only exchange which is offering very competitive trading fees [0% maker; 0.25% taker] while having to comply with local regulations in Vietnam to offer a consistent and stable service to our clients, the revenue has to be generated somewhere in order to keep providing such a service.

While you might be able to buy also in the OTC markets, you most likely will end up paying a higher spread than if trading directly on an exchange platform.

Moreover: If the exchange has a proper cold storage set up, the withdrawal fee has to basically cover for three transactions:

- Deposits moved into Cold Storage
- Cold Storage transfers into Hot Wallet
- User withdrawal from Hot Wallet

...without a Cold Storage, you can reduce this from 3 to 1tx the exchange has to cover... - but this comes at (naturally) a much higher risk, that the exchange might go bust if things go the wrong way.

Ultimately: You get what you pay for.

Operating a service such as this costs significant $ and if one is cutting a few corners too much in order to beat the competition by another basis point or two, the users will ultimately pay the price for it.

[serjent05]

What else can we expect?  Exchange is a business establishment.  They establish it to make money, so they will definitely charge every action their client made on their platforms such as trading fees, and withdrawal fees.  And if the situation allows them, they wanted to get as much profit as they can from these charges. Exchange is not a charity that will let us use their service free of charge.  So it is either we deal with it or stop using their service.

[Baofeng]

The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?

I think if you compare it to fiat withdrawals, it is still cheap. Besides, they need to  money to keep their business going so I guess they need to charge extra. And we don't know what exchanges you try though, much better if you tell us so that we can we see if they have the 'rights' to charge such high fees. Maybe the network is clogged that time. Anyways, here is one example why it is cheap: Bitcoin whale moves ball busting $1.1B for just $83.

[inthelongrun]

The only lackings I see in bitcoin is its too high withdrawal fee. Almost every exchange takes such a huge fee for bitcoin transactions. I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?

I think if you compare it to fiat withdrawals, it is still cheap. Besides, they need to  money to keep their business going so I guess they need to charge extra. And we don't know what exchanges you try though, much better if you tell us so that we can we see if they have the 'rights' to charge such high fees. Maybe the network is clogged that time. Anyways, here is one example why it is cheap: Bitcoin whale moves ball busting $1.1B for just $83.

Considering huge amounts of withdrawals then obviously $9-12 is very cheap. But the point here is, what about small withdrawals? Well, since bitcoin price continues to increase so the fixed bitcoin withdrawal fees on exchanges increases in dollar value too. But I think exchanges will lower withdrawal fees once bitcoin price reaches ath or more. For now, there is nothing we can do but using altcoins on withdrawals can be a good alternative. 

[Oasisman]

I tried in several exchanges and was shocked because they all are asking 9-12$ withdrawal fee! What do you think about this issue guys? Why are they asking this high fee?

That's like a uniform fees, It seems that every exchange wants to follow a certain range of exchange rates which I found absurd. High withdrawal fees has become a headache even before, but like most of the people do, we can't avoid these fees, specially if we are trading or use an exchange for a different transactions.

[vermigerous]

No doubt about it, since bitcoin has the most valued price in the market, exchanges also wants to earn out from it. Higher valued crypto higher rate of fees.

[Mumbeeptind1963]

Considering huge amounts of withdrawals then obviously $9-12 is very cheap. But the point here is, what about small withdrawals? Well, since bitcoin price continues to increase so the fixed bitcoin withdrawal fees on exchanges increases in dollar value too. But I think exchanges will lower withdrawal fees once bitcoin price reaches ath or more. For now, there is nothing we can do but using altcoins on withdrawals can be a good alternative. 

It will be very normal since bitcoin price is getting higher now ,so fees will go higher as well, if you want to lower the fees i think  you may convert it in XRP for lower fees and faster transaction. But it is up to you, exchange fee is so high for me it will lessen my earnings since I only got salary here in bounty so it is bad for me .

[Botnake]

The exchange fee will be higher if the value of bitcoin increases.
In some exchanges the fee are really high but with other top exchanges, you can get at 0.0005 withdrawal fee per transaction, that's already 5 usd at the current price but actually that would not hurt you if you are making money in an exchange.

[finaleshot2016]

In exchanges, you can do trading and through trading, you can earn a  lot of profit there if you're good at it. So exchanges fee are very expensive since you're using their platform for your benefit. Bitcoin price is going higher so expect that fees will go high too, it's directly proportional to each other.

Bitcoin is the target of all of the devs that creates good exchanges, they wanted to earn profit as well from their users.