Bitcoin withdrawal fee is damn high in exchanges!

[blckhawk]

That's why most traders trade it beforehand to other cryptocurrencies with lower withdrawal fees such as Ethereum and XRP. The fees for Bitcoin is just quite high for regular withdrawals. However, the problem emerges when you want your coins to be Bitcoin, in which case you'll be forced to withdraw with high fees, or find an e-wallet service supporting direct exchange of cryptocurrencies (even only the top ones) with significant lower fees of conversion.

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[philipma1957]

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.

I would have given you a merit  but you choose to hide your link to  your blog page.

You offered some inside as to multiple transactions to send the btc correctly. Plus keep it protected while you hold it. I do believe most of us would not realize this is a real expense incurred by a good exchange practicing safe money keeping.

[krulviper]

the number of bitcoin users every day continues to increase and it also increases the number of bitcoin transactions every day, maybe one of the reasons why the fees are very large is to limit the number of transactions that occur so that transactions can be faster confirmed

[xSkylarx]

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've also tried many exchanges before and I think that is normal. Every time bitcoin's price goes up, fees in exchanges goes up as well in fiat value.
So if you plan to trade only a small amount, you should also deposit additional funds that can cover that fee.
If you are a whale trader, that fee is already good in exchange for receiving a big amount of money.

[Kelvinid]

It is not new to us seeing withdrawal fees will increase once Bitcoin price will also be soaring high. Base on my experience, most exchanger asking 0.001BTC for withdrawal and our good option to save some fees is to convert it into altcoins which are of lesser fees. I usually doing and converted into XRP, it was lesser fees than of ETH but if we don't have other options, then we have to sacrifice some BTC just to withdraw our funds. It was disappointing but we have nothing to do.

That is why some traders are so particular in fees and so they always have to look for exchanges that offer low fees. But at this time, we could expect that fees may increase as the market rise also.

[White Christmas]

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 bitcoin transaction fee was really huge when the transaction will be made and held through bitcoin so it would be better if you guys will try to convert it first into xrp or ethereum to avoid huge transaction fee, remember that if it is in the ethereum or xrp the payment deduction will be just a small amount of xrp or ethereum and it would be great because the transaction fee will be lessen.

[isaac_clarke22]

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Sometimes it kinda depends especially on the service they provided if it is worth the price, because it is gonna be a double-edged sword if they put the fees in a "wrong" amount.
From the days that I was still day-trading in Binance, the withdrawal fees aren't that much of something that would give me a lot of losses. Another one exchange that I traded at was EtherDelta, and to be honest it was kinda slow to even deposit, so I must say that fees aren't worth that long of a wait.

[Meowth05]

the number of bitcoin users every day continues to increase and it also increases the number of bitcoin transactions every day, maybe one of the reasons why the fees are very large is to limit the number of transactions that occur so that transactions can be faster confirmed

Exactly. Due to the reason of plenty transaction have been made every day, transaction fees tend to increase. Exchanges offer high transactional fees in order to process every transaction more faster and to be prioritized by miners, besides, it simply serves as their profit. As a result, traders used to convert their Bitcoin unto more cheaper transaction coins like XRP and ETH.

[yazher]

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?

This is true for some exchanges out there but some exchanges have reasonable Bitcoin transaction fees. If you using Yobit or any other exchanges, it's better to convert it first to XRP then send it to your local exchanges that support XRP as well. you can also choose ETH but I prefer XRP because so far, this is the only coins that I know that have the lowest transaction fee ever and fast.

[FanatMonet]

the number of bitcoin users every day continues to increase and it also increases the number of bitcoin transactions every day, maybe one of the reasons why the fees are very large is to limit the number of transactions that occur so that transactions can be faster confirmed

Exactly. Due to the reason of plenty transaction have been made every day, transaction fees tend to increase. Exchanges offer high transactional fees in order to process every transaction more faster and to be prioritized by miners, besides, it simply serves as their profit. As a result, traders used to convert their Bitcoin unto more cheaper transaction coins like XRP and ETH.

In essence, with an increase in the number of transactions, their value should, on the contrary, decrease slightly, provided that there is still an excess of capacities, because pools should compete with each other in order to maximize benefits. But I think many remember the time when there were 100,000 and 150,000 commissions, when there was a huge threat that miners would stop processing payments.

[AicecreaME]

It is not an issue, just like us, they also has families to feed, bills to pay up, and other personal needs. We just have to be wise when using exchanges, in my case, if I really needed the money as soon as possible, I will convert my bitcoin in a token that has lower transaction fee when you are withdrawing it our from your wallet in a certain exchanger to your cryptocurrency wallet.

Examples of that tokens are XRP and ETH. But if you are going to hold your bitcoin and you need to transfer it somewhere safe, I guess the transaction fee is worth to be paid.

[BuNga_cute]

Indeed, it has been a long time since the problem of bitcoin withdrawal fees is high, every exchange it imposes is most likely due
bitcoin prices are increasingly expensive and the difficulty level of mining is increasingly difficult to make miners costs so high.
From here is the beginning Bitcoin withdrawal fees are increasingly expensive. But in this regard there is already a solution, by first
converting your bitcoin into coins others that have lower withdrawal fees, before making withdrawals from exchanges. Due to withdrawal
fees such as ETH, XRP, XLM, LTC and DOGE are much cheaper than bitcoin.

[Yatsan]

Just some tips for you guys! Use XRP when withdrawing in any trading website, withdrawing using XRP is instant and the withdrawal fee is very slow I am using XRP in almost all of my transactions considering that it's speed and fee is outstanding. Honestly, like it or hate it bitcoin traction is not ideal, it's fee is too damn high and the speed is very slow, so use alternative cryptocurrency when you want a hassle-free transaction.

[gunungkembar]

Just some tips for you guys! Use XRP when withdrawing in any trading website, withdrawing using XRP is instant and the withdrawal fee is very slow I am using XRP in almost all of my transactions considering that it's speed and fee is outstanding. Honestly, like it or hate it bitcoin traction is not ideal, it's fee is too damn high and the speed is very slow, so use alternative cryptocurrency when you want a hassle-free transaction.

well indeed for withdrawals from the exchange to another exchange you can use altcoin such as litecoin, XRP and Tron which in my opinion have transaction speeds and are proven to be cheaper, imagine if bitcoin becomes very expensive, shipping costs will certainly be expensive too.

[bering]

Just like the post above me to solved this problem you can use altcoin instead of btc because altcoin usually have low fees compare to bitcoin but one of the main income from exchanges besides trading fees is from the withdrawal fees too and i think they don't have any plan to reduce it even if someday bitcoin price higher than now i'm sure they will increase the fees too following the price

[cabron]

Despite these exchanges having their own native token for the fees of the traders, they themselves don't accept these tokens as fees in withdrawals. Take BNB for example, instead of them asking BNB for the withdrawal fees, they asks BTC. Even the rest of the exchanges like Kucoin. I have no idea which exchanges nor DEX that don't take BTC as withdrawal fees. WAVES DEX asks 0.01WAVES for withdrawal fees but their gateway will still asks BTC.

[Artemis3]

Just like the post above me to solved this problem you can use altcoin instead of btc because altcoin usually have low fees compare to bitcoin but one of the main income from exchanges besides trading fees is from the withdrawal fees too and i think they don't have any plan to reduce it even if someday bitcoin price higher than now i'm sure they will increase the fees too following the price

I still think exchanges should let users choose a "slow" withdrawal method that involves using 1 sat/b tx fees. Yes, even funds being moved from their cold wallet.

If you want to withdraw $100, $10 in fees is too much, and there are people willing to wait in exchange of paying less. But exchanges don't ever think about it and blame it on Bitcoin.

Using an altcoin is no solution when you want to cash your profit and hold them in Bitcoin. If anything, this is an anti-Bitcoin practice, exchanges should be more mindful of what this implies.

[gandame]

Just some tips for you guys! Use XRP when withdrawing in any trading website, withdrawing using XRP is instant and the withdrawal fee is very slow I am using XRP in almost all of my transactions considering that it's speed and fee is outstanding. Honestly, like it or hate it bitcoin traction is not ideal, it's fee is too damn high and the speed is very slow, so use alternative cryptocurrency when you want a hassle-free transaction.

well indeed for withdrawals from the exchange to another exchange you can use altcoin such as litecoin, XRP and Tron which in my opinion have transaction speeds and are proven to be cheaper, imagine if bitcoin becomes very expensive, shipping costs will certainly be expensive too.

Aside from the said altcoins above, I would like to add, you can also use doge to have a cheaper withdrawal fee. It is much cheaper than xrp, but if you prefer to have a faster transaction or maybe instant, XRP would be the better option. I also use this most of the time to avoid high transaction fees.

[franky1]

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.

there is no big cost of withdrawing btc for the exchange. they make enough from trade fee's to cover their running costs.

the reason they do it is to two fold
both are about not wanting as many people taking bitcoin out so easily.
first people end up trading more often to make enough profit that the fee is immaterial amount.

and the other is to slow down how often people arbitrage by taking btc out to then put into other exchanges. yep by people converting btc into an altcoin to then withdraw means the exchange keeps the btc because less people are taking out the btc.

other reasons are that it stops people just wanting to play around with $50 worth of bitcoin as it costs 20% to take their funds out. so people end up playing with $500+ so the exit fee is only 2% and easier to make 2% extra profit to make that fee negligable

. if the fee was only 20cents more people would do a single trade and exit and drain the exchange of their cold wallets. by putting it up to $10 makes them keep coins in for longer

..
its the same game fiat banks use.
by having daily withdrawal limits of $500 ATM and then put charges on ATM withdrawals. people are less easily wanting to take money out of their bank

[2double0]

I also don't get this thing when I try to withdraw my coins that why do they ask us that huge amount when they don't even send half of what we paid them in fee? Is it not a way for them to make money? I can go for altcoins but then, what is the use of Bitcoin? Why can't we have 5k satoshis in fee instead of 50k or 100k? The alts we choose to withdraw, need buyers in real world too to sell these to them directly without finding a way to convert it back to BTC or Eth.