Bitcoin withdrawal fee is damn high in exchanges!

[Tduty]

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?

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What do you think about this issue guys?
Why are they asking this high fee?

This is not the first time the issue has been raised. I personally don't think it's that much of an issue because I understand that exchanges are also businesses. Centralized exchanges won't survive long without these fees. You pay for the services they offer to you as a user. Why so high? I don't have the figures to check how much is their operating cost but I can say that they charge to profit and continue to operate.

If you find the withdrawal fees troubling, you have the option to go for altcoins with cheaper fees like doge. You can trade on decentralized exchanges but you might raise another issue which is liquidity. Then again, CEX provides better liquidity and using their service has a higher cost.

[20kevin20]

This is not the first time the issue has been raised. I personally don't think it's that much of an issue because I understand that exchanges are also businesses. Centralized exchanges won't survive long without these fees. You pay for the services they offer to you as a user. Why so high? I don't have the figures to check how much is their operating cost but I can say that they charge to profit and continue to operate.

If you find the withdrawal fees troubling, you have the option to go for altcoins with cheaper fees like doge. You can trade on decentralized exchanges but you might raise another issue which is liquidity. Then again, CEX provides better liquidity and using their service has a higher cost.

It depends. I think a high withdrawal fee + trading fees are too much. And trust me, exchanges with high withdrawal fees earn a lot just from them alone. Think of weaker hands - they're going to be bipolar during trades and they'll keep depositing and withdrawing with every sharper move of the markets, going with the market flows (in other words, losing).

I think exchanges should either have withdrawal fees or trading ones. Not both..

[Assface16678]

This is not the first time the issue has been raised. I personally don't think it's that much of an issue because I understand that exchanges are also businesses. Centralized exchanges won't survive long without these fees. You pay for the services they offer to you as a user. Why so high? I don't have the figures to check how much is their operating cost but I can say that they charge to profit and continue to operate.

If you find the withdrawal fees troubling, you have the option to go for altcoins with cheaper fees like doge. You can trade on decentralized exchanges but you might raise another issue which is liquidity. Then again, CEX provides better liquidity and using their service has a higher cost.

It depends. I think a high withdrawal fee + trading fees are too much. And trust me, exchanges with high withdrawal fees earn a lot just from them alone. Think of weaker hands - they're going to be bipolar during trades and they'll keep depositing and withdrawing with every sharper move of the markets, going with the market flows (in other words, losing).

I think exchanges should either have withdrawal fees or trading ones. Not both..

When we are making some trading, most of us having trouble with the use of transactions fee because it was too high, and most of the time bitcoin is one of the most top transactions fee and because of the market price. Today the cost of the bitcoin shows a good market profit, and we are welcoming back the price of the coin because from the previous year the amount came from 6k dollars and now it is going up again and back to 10k dollars now some of the people make more investment and hoping still the price of the coin goes up again and so the people want to withdraw their coins they have some trouble because the cost of the bitcoin comes back with a higher fee because of increasing of market price.

Because that's how they make money (or at least cover their operational fees), even non-cryptocurrency exchange also have high withdraw fees.

I think exchanges should either have withdrawal fees or trading ones. Not both..

IMO it's not realistic because some users are active trader while other users only make 1 buy/sell trading activity which makes only certain user got the benefit of low fees.

I think we cannot stop other people to make a transaction every time because sometimes they have a lot of earnings and they want to invest into other currency too and yet we cannot control other people and the market to make a stop for a while for having transactions because it may affect the whole market. This is the reason why the price goes up and down because of the trades happening.

[erikalui]

Because that's how they make money (or at least cover their operational fees), even non-cryptocurrency exchange also have high withdraw fees.

Exchanges mint from listing fee so that's not true. They ask for high fee and just add 1% of that amount as the real fee plus they have trading fee.



I have lost over $200-300 just as withdrawal fees on exchanges as even for a small amount they charge 0.001 BTC and hence I prefer withdrawing ETH where the charge is 0.01 ($2) on most exchanges as many fiat exchanges also accept ETH deposits. That's the best option.

[Bttzed03]

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It depends. I think a high withdrawal fee + trading fees are too much. And trust me, exchanges with high withdrawal fees earn a lot just from them alone. Think of weaker hands - they're going to be bipolar during trades and they'll keep depositing and withdrawing with every sharper move of the markets, going with the market flows (in other words, losing).

I think exchanges should either have withdrawal fees or trading ones. Not both..

Some exchanges do some marketing trick with their zero trading fees but charges huge withdrawal fees or the other way around. Either way, it's not that different from exchanges charging both trading and withdrawal fees.

There is no doubt that they are earning from withdrawal fees but like I said, I don't have the figures so I can't simply trust you unless you can show some concrete data.

[pooya87]

that is a big part of exchange revenues and in fact it is one of the main reasons why so many traders are forced to leave their funds on exchanges (bitcoin withdrawal has high fees and fiat withdrawals have even higher fees thanks to banks).
and this is yet another incentive to move towards more decentralized exchanges where there is nobody to take fees (either trading fees or withdrawal fees) there is only network fees to be paid.

[pakhitheboss]

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 price when you calculate it in fiat will be higher as the value of Bitcoin increases. Still some exchange like Binance charge 0.001 Satoshi for Bitcoin withdrawal which is very high according to me.

[minairia3]

Yeah damn right. Btc fee is really high and eats a lot from our trades. I know that Exchange conserved this to earn profits on their operation. As a user its really heart breaking cause its so steep to pay those huge fees. That's why I resort to using smaller fee coins such as xrp, bch, doge and other coins that supported on our country for trading.

[Tipstar]

Most of the popular exchanges have that fees. And I think it's mostly to discourage arbitrage trading. Popular exchanges are not actually the real place to exchange your one coin to another. They are crowded by day traders and manipulators. If you are for coin to coin exchange, spot exchanges are the best choices and among them, decentralized one would be more trustworthy.

[xvids]

It is how they make some money to make sure that their site could continue and upgrade their security system,
If you couldn't afford it or think that it is too high there are always some other ways try to use alt-coin when withdrawing from the exchanges.
We are free to use other alt-coin to withdraw they are not forcing us to pay it, It is always up to us.

[Janation]

This is a problem of the past, as far as I know, the high transaction fee and the slow transaction time took together a problem in the past too.

Right now, I am used to this so I don't have a choice but to either convert some of the cryptocurrencies into other cryptos or hold that crypto for a little bit at that exchange. And as said by others, it is usually for those people that do arbitrage trading since I did that too in the past where I see an opportunity, sell it and then take it out of that site and might go back after a week when the price is good.

[NeuroticFish]

Why are they asking this high fee?

Because they can. Because many don't care if they work with very high amounts. Because if they convince you keep your money there just to avoid paying the fees, they may benefit of it (their keys, their coins!).
What you can do:
* pick another exchange https://bitcointalk.org/index.php?topic=5079048.0
* if possible and suits you, withdraw the lower fee altcoins, there's quite a list
* keep the money at the exchanges until there will be more to withdraw (not the best choice)

[kryptqnick]

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 have not used exchanges for a long while, but my last time was on HITbtc exchange, and I don't remember it being expensive... At the same time, it's easy to guess why exchanges raise their fees. For one, this is another source of income for them. Apart from that, a higher fee encourages people to keep their money on the exchange rather than withdraw immediately, which is also good for exchanges. Does Binance have high fees as well? According to what I see on Coingecko, it seems fine (although it could, of course, be around $10, because it depends on the amount of money you withdraw from there. Just look for an exchange which will be better for you. Good luck!

[Wexnident]

Nothing we can do about that mate. Fees are probably high because they need to manage the exchange, plus, they have to pay their employees. Not only that, but there's also the issue of them adding more features and adding qol improvements towards their UI and codes, which makes it easier for traders. It's understandable, and yet at the same time, not. Ngl, I know what you feel, but they're honestly at the upper hand in this argument. Why? Simply because, if you think their fees are high, then don't use their exchange, we aren't forcing you kind of thing.

Tbh, there's nothing wrong with it, they're pretty much just doing their job. Not really our place to complain against them. It's like they place their fees at a place where you can't help but feel the pain but still is within manageable levels.

[Kupid002]

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 widrawal fee in exchange is mostly 0.001-0.0005 per widraw thats normal thing before but because of price increase of bitcoin it will look like much higher in terms USD value.
The solution i do to reduce the value of transaction fee is i use other crypto for widrawal such as XRP and i only use bitcoin for deposit in exchange.
If you dont have local exchange that can easily convert other crypto to fiat is the problem need to solve on me thats not a problem.

[o_e_l_e_o]

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.

[alexsandria]

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?

Yes it is really to high if your transaction will be made through bitcoin but just like what others do, they are using the exchangers to buy some ripples or ethereum in exchange of bitcoin then when their bitcoin becomes ethereum or xrp then this would be the time that they will be able to withdraw it then the transaction fee will be just xrp or ethereum and it is more less than the transaction fee of bitcoin. This probably many people are doing to avoid large transaction fee of using bitcoin.

[fiulpro]

Unfortunately it depends on the exchange you are using , as for me I pay the same amount I pay when I send bitcoins from one wallet to another , the thing is the widrawal fee is different for different exchanges , you should try And read the terms and conditions before you make any move like that , but I do think it would be good if you just keep your bitcoins there for a while and pay at once , this is what I do , keep accumulating them as I go forward and then pay at once , it actually reduces the load but yes is not at all fast and consumes a lot of time..

[FanatMonet]

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 very commonplace, the commission for withdrawing funds is probably not a very large, but noticeable part of the exchange’s income. For example, I saw exchanges where the output is at the level of 50,000 satoshi, despite the fact that the user’s conclusions can be combined into 1 transaction, and let's say 2000-3000, well, even 5000 satoshi for each, and get the rest of the amount as net profit.