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[bytebulls]

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[1713882850]

1713882850

[1713882850]

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[1713882850]

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[1713882850]

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[1713882850]

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[jcpone]

Most of the exchange that are listed at the coinmarketcap was actually no question to me when it comes in doing trade to their
platform as long as I gained a lot in the exchange. In fact, in my experienced of high fee was the exchange that are not popular and don't
have any good background in the history record.

[Jack ju]

2.What is the difference between the withdrawal fee and the on-chain transaction cost?
Everyone may be confused about this. In this case, the only difference between the withdrawal fee and the on-chain transaction cost is that the user hands the withdrawal fee to the exchange, then the exchange gives this withdrawal fee to the miners as an on-chain transaction cost, isn't it? Actually, the difference is more than that. The exchange does not just do a simple transfer of these fees.

Taking Bitcoin as an example, when a user initiates a transfer on the Bitcoin network, usually the user needs to pay a certain transfer fee to the miner.  The transfer fee is generally 0.0001 to 0.0015 BTC, but because the capacity of the block to accommodate the transaction record is limited, the miner preferentially packages transactions with high fees, so transactions with high fees can be confirmed faster. Especially in the case of block congestion, higher fees can greatly increase the probability of transaction being confirmed. Then the evaluation work falls to the exchange. The exchange can evaluate the network congestion of the blockchain network, and then pay the appropriate amount of processing fees to ensure that the users' withdrawals get packaged and confirmed as soon as possible. When the block is abnormally congested, it may be necessary to pay a fee several times higher than usual to ensure that the transaction is packaged and confirmed.

Therefore, the exchange eliminates the task of evaluating the status of the block for users, and users only needs to perform a few simple steps to complete withdraw, and the remaining complicated work can be left to the exchange.

Thanks for sharing. The problem of withdrawal fee and the on-chain transaction cost has been bothering me for a long time, and I understand a little bit after reading this

[mnporter2001]

actually this is very simple and we don't need to write such a long article. Although we appreciate your enthusiasm, we can summarize it so that it is easier for people to read and understand. According to my experience of over 3 years working in the crypto market, I realized that big exchanges have similar withdraw fees and only uncommon exchanges have high fees. You can try to withdraw a small amount at Binance and Yobit exchange, you will see a huge difference in fee.

[el kaka22]

Is this a topic for exchange operators or for traders?

Both exchange officials and people who are going to withdraw must need to analyze about the "current network congestion" and from that they must decide about level of fee based on waiting time. There are lots of tools available to directly (without need of bothering about mempool size nor about count of unconfirmed tx) get us the fee structure from immediate confirmation to delayed confirmation.

Exchanges (or any service provider) must need to set withdraw fee that they are going to charge from the withdraw money. When there is big change on network congestion and exchange failed to alter may result in more transaction unconfirmed for longer duration. From an end-user point of view, they can check on many available tools and may go for choosing the right fee for their tx.

Here are few tools to check about current trend of fee and mempool's unconfirmed transactions:
http://core.jochen-hoenicke.de/queue/#0,24h
https://www.buybitcoinworldwide.com/fee-calculator
https://bitcoinfees.net
https://bitcoinfees.earn.com

[Twentyonepaylots]

Is this a topic for exchange operators or for traders?

These are only for traders as exchange operators has to follow algorithms in accordance to network, the heavy the network the more it generates transaction fee.

Both exchange officials and people who are going to withdraw must need to analyze about the "current network congestion" and from that they must decide about level of fee based on waiting time. There are lots of tools available to directly (without need of bothering about mempool size nor about count of unconfirmed tx) get us the fee structure from immediate confirmation to delayed confirmation.

Network congestion varies every time that's why we need to calculate for every withdrawal that we are making, so the fee basically defined by the network traffic BUT it varies on the exchange also, there are exchanges that has a low trading volume for a specific coin which means you can withdraw it with lower transaction fee.

Exchanges (or any service provider) must need to set withdraw fee that they are going to charge from the withdraw money. When there is big change on network congestion and exchange failed to alter may result in more transaction unconfirmed for longer duration.

Yeah, they can basically check what's going on with their transaction whether it is taking long. The very answer to this question is that, don't withdraw when the market is on fire to minimize your expenses. You can just convert it to stable coins for a while before clearing in.

[bigcash2011]

Trading fee is a normal thing but withdrawal fee has been in discussion for long, i mean it is a bit controversial as some exchanges charge high withdrawal fee like hitbtc while some exchanges charge small and reasonable withdrawal fee like most of the top exchanges so i think there should be uniformity in withdrawal fee and all high charging withdrawal fee should re-consider their policy regarding it.

[GreatArkansas]

Trading fee is a normal thing but withdrawal fee has been in discussion for long, i mean it is a bit controversial as some exchanges charge high withdrawal fee like hitbtc while some exchanges charge small and reasonable withdrawal fee like most of the top exchanges so i think there should be uniformity in withdrawal fee and all high charging withdrawal fee should re-consider their policy regarding it.

This is difficult, every exchange got their reason why their withdrawal fees is that kind of amount.
Some exchanges are using batch transactions for them to withdraw some funds from its users. Like for specific time, all pending withdrawals will be sent as a batch, so expect this got a very few transaction fees.
While some using high transaction fee/ satoshi per byte so your withdrawal will confirm in just a short period of time.

[maydna]

I think we don't have to withdraw using bitcoin, but we can use altcoin to withdraw and reduce the fees. If you think that the fee for withdrawing your bitcoin is too big for you, you can select the altcoin, and send it to your favorite exchange, and if it has a conversion from the altcoin to your currency, then that is good. You can directly sell your altcoin and get the fiat. But if in your exchange doesn't have a conversion, then you should convert it again into bitcoin, and convert it into your currency.

It will no problem if you still have to pay the fee of converting your altcoin or your bitcoin because the fee will be something that you should pay. So I think we don't have to confuse and think much about the fee because we have so many altcoins that will help us to reduce the fee.

[Assface16678]

I don't think so because most of the withdrawal fee on the exchange there is default payment that deducts to your balance and some of them has already an option which depends on the faster transactions on the payment. Still, if you want to reduce the transaction fee you do not need to use the coin which has a large fee instead this is an exchange trade into other coins and gets your money easily with low fees like the litecoin and the ripple.

I think we don't have to withdraw using bitcoin, but we can use altcoin to withdraw and reduce the fees. If you think that the fee for withdrawing your bitcoin is too big for you, you can select the altcoin, and send it to your favorite exchange, and if it has a conversion from the altcoin to your currency, then that is good. You can directly sell your altcoin and get the fiat. But if in your exchange doesn't have a conversion, then you should convert it again into bitcoin, and convert it into your currency.

It will no problem if you still have to pay the fee of converting your altcoin or your bitcoin because the fee will be something that you should pay. So I think we don't have to confuse and think much about the fee because we have so many altcoins that will help us to reduce the fee.

Altcoins are one of the savior if you want to avoid having a top much large transaction fee most of the traders do this and convert into fiat currency to another lessen fees on it.