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Author Topic: Cryptocurrency fees are different  (Read 85 times)
GeorgeJohn
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February 01, 2021, 07:34:03 AM
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I always astonished while cryptocurrencies transaction fees are different from each other, while is that bitcoin charges and ethereum charges are not the same, irrespective the values of the two coins we want to transact, bitcoin fees must be higher than the other alternative coin,  using ethereum as a case study and as a altcoins representative, if transacting with ETH 0.1 and BTC 0.1 irrespective how ambiguous is bitcoin the charge's will be more expensive, while?

While is that the higher the charge of bitcoin the faster the transactions process
And the lower the fees the lower the transactions process,

Does it means Binance in particular is after their percentage or not?

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Charles-Tim
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February 01, 2021, 07:48:13 AM
 #2

if transacting with ETH 0.1 and BTC 0.1 irrespective how ambiguous is bitcoin the charge's will be more expensive, while?
They are two different cryptocurrencies, but ethereum fee is also high.

While is that the higher the charge of bitcoin the faster the transactions process
And the lower the fees the lower the transactions process,
Not only fee that determines how bitcoin transactions will be fast, but yes, the higher the fee the higher the transaction speed. But mempool is also another factor that determines transaction speed. If the mempool is congested, you will need to pay higher fee but paying lower fee if mempool is less congested can make the transaction to also surprising fast at times if the mempool remain decongested for that time period and your transaction is confirmed. Miners do not have option than to pick up transactions when mempool is less congested, but they pick up higher fee transactions during mempool congestion.


Does it means Binance in particular is after their percentage or not?
Binance is not a noncustodial wallet, binance is an exchange. Exchanges do charge higher fee. The fee charged for withdrawal on exchanges are:

1. The ones that miners will charge for transaction to be successful
2. The exchange itself will charge fee which will be used for maintenance

But what it is noticed is that the fee charged by exchanges for the maintenance is always higher than the fee charged by miners.

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GeorgeJohn
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February 01, 2021, 08:13:41 AM
 #3

if transacting with ETH 0.1 and BTC 0.1 irrespective how ambiguous is bitcoin the charge's will be more expensive, while?
They are two different cryptocurrencies, but ethereum fee is also high.

While is that the higher the charge of bitcoin the faster the transactions process
And the lower the fees the lower the transactions process,
Not only fee that determines how bitcoin transactions will be fast, but yes, the higher the fee the higher the transaction speed. But mempool is also another factor that determines transaction speed. If the mempool is congested, you will need to pay higher fee but paying lower fee if mempool is less congested can make the transaction to also surprising fast at times if the mempool remain decongested for that time period and your transaction is confirmed. Miners do not have option than to pick up transactions when mempool is less congested, but they pick up higher fee transactions during mempool congestion.

1. The ones that miners will charge for transaction to be successful
2. The exchange itself will charge fee which will be used for maintenance

But what it is noticed is that the fee charged by exchanges for the maintenance is always higher than the fee charged by miners.
But it's very obvious that their fees is expensive irrespective that they deduct their maintenance fees and other fees that benefits their cooperatives, at least it should be lower than the way it's, correctly to transact with Binance is scaring due to their charge's.

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Charles-Tim
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February 01, 2021, 08:34:23 AM
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But it's very obvious that their fees is expensive irrespective that they deduct their maintenance fees and other fees that benefits their cooperatives, at least it should be lower than the way it's, correctly to transact with Binance is scaring due to their charge's.
Fee on noncustodial wallets are much more lower. But, it is also worth comparing exchanges, Binance is still better if compared to many other exchanges, like Bitcoin withdrawal, Binance charges is 0.0005 btc compared to many other exchanges that charges higher fee like 0.0015 btc charged on HitBTC. But, you are right, exchanges generally charge high fee if compared to noncustodial wallets.

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NotATether
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February 01, 2021, 09:04:18 AM
 #5

You are comparing two completely different coins. Of course the transaction fees will be different for each.

Each network has different rules for deciding the transaction fee at a particular time.

And if you are using an exchange, part of the transaction fees you send is taken by them as revenue, so that's the reason they charge higher fees.

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February 01, 2021, 11:41:23 AM
 #6

if transacting with ETH 0.1 and BTC 0.1 irrespective how ambiguous is bitcoin the charge's will be more expensive, while?

It's not that simple, there are many factors to determine transaction fee
1. How many transaction per second (TPS) can be processed/included in a block?
2. How many TPS is created by all owner of the cryptocurrency?
3. Do you need your transaction confirmed quickly or not?
4. The size of the transaction itself

Fee on noncustodial wallets are much more lower.

It depends, very few non-custodial wallet have limited option to configure fee transaction.

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