I want to withdraw BTC from binance into Electrum. (Have some questions..)

[b1lly]

Hello. I am new here. I bought my first bitcoins a couple of days ago and they be sitting in binance.
I've heard i should probably move my bitcoins to a personal wallet. I have downloaded Electrum and created a 2FA "segwit" wallet, and so every address it generates starts from "bc1" and i guess is related with the "segwit" transfer network. I am not entirly sure of what transfer networks are or how they work but anyway.

When creating an Electrum wallet i chose to create a "segwit" wallet instead of a "legacy" one because it said "segwit" is newer and it is both cheaper and faster (for fees and transaction speed). Also i chose 2FA for extra security (assuming it means 2 factor authenticator )

Now then... Into binance. I go to Withdraw - Crypto and i choose the bitcoins i want to transfer to my electrum wallet. I paste the "Recipient's BTC Address" (address generated from my electrum wallet) and then i need to choose the Transfer Network. And it has only these 4:
BEP2 (BNB)
BEP20 (BSC)
BTC
ERC20 (ETH)

Basically, if i understand things correctly, only one for bitcoins, the BTC. But I dont see the "BTC(SegWit)" there. However, when i go to the Deposit - Crypto page in binance, there is one extra Transfer Network there. SegWit! Binance has 2 BTC Networks to choose from when you want to deposit, but only one when you want to withdraw. And that one is the expensive one! I dont understand it...

If i choose the "BTC" transfer network to withdraw my bitcoins and deposit them into electrum and pay the heavy fee price of 0.0005 BTC / 20 dollars, is my Electrum's address safe to use even if it starts with bc1 or im going to lose my money? Does the network have to be "BTC (segwit)" ?

Lastly, why is the fee so expensive? 20$ seems a quit a lot. Am i doing something wrong...? Is there another way to minimize the fees? Should i create another wallet?
In anyway, what am i supposed to do now? I have not done ANY crypto transactions before. This is my first time. Hell it took me 3 weeks to even BUY these bitcoins (my first crypto). So many questions, i am so sorry guys I just want to make sure i dont lose my money because i have heard of TOO MANY stories where people lost all their crypto to fees or something else... :/ Hope someone can help me. I asked reddit and i got no answers.
I am so lost!

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[Charles-Tim]

First of all, it will be good to read about how TrustedCoin charges 2fa fee if enabled on electrum wallet, to know if to use it or not. If you think the 2fa fee is high, it will be good to create a standard wallet, you can also use segwit which will charge you lesser fee during transaction.
https://api.trustedcoin.com/#/electrum-help

Basically, if i understand things correctly, only one for bitcoins, the BTC. But I dont see the "BTC(SegWit)" there. However, when i go to the Deposit - Crypto page in binance, there is one extra Transfer Network there. SegWit! Binance has 2 BTC Networks to choose from when you want to deposit, but only one when you want to withdraw. And that one is the expensive one! I dont understand it...

Binance support segwit for deposit, I do not know if the withdrawal will be segwit or not, but it does not matter as the fee is static at 0.0005BTC which is already too high for even legacy address transaction to be confirmed in the next block, you can deposit from segwit to legacy or legacy to segwit or to any bitcoin address, so far it is bitcoin address, the transaction will be successful. So, just use the withdraw to send to the segwit address, it will be successful.

If i choose the "BTC" transfer network to withdraw my bitcoins and deposit them into electrum and pay the heavy fee price of 0.0005 BTC / 20 dollars, is my Electrum's address safe to use even if it starts with bc1 or im going to lose my money? Does the network have to be "BTC (segwit)" ?

Your bitcoin is safe. Make sure you use BTC, (do not use BEP2 (BNB), BEP20 (BSC), ERC20 (ETH))

Lastly, why is the fee so expensive? 20$ seems a quit a lot. Am i doing something wrong...? Is there another way to minimize the fees? Should i create another wallet?

Exchanges do charge high fee, some even charge higher than Binance. You are not doing anything wrong. There is no way to minimize the fee. You do not have to create another wallet unless you do not like 2fa because of the extra fee charge, and in that case, opening normal segwit wallet on electrum will be good, but that does not change the fact that Binance will charge you 0.0005BTC as electrum is not responsible for that but Binance.

[HCP]

If i choose the "BTC" transfer network to withdraw my bitcoins and deposit them into electrum and pay the heavy fee price of 0.0005 BTC / 20 dollars, is my Electrum's address safe to use even if it starts with bc1 or im going to lose my money? Does the network have to be "BTC (segwit)" ?

No, all bitcoin address types are "valid" on the Bitcoin network... Legacy ("1"-type address), P2SH ("3"-type address) and Bech32 ("bc1"-type address) can all be used interchangeably as far as the network is concerned. It's wallet support for the newer "native segwit" (aka bech32 aka "bc1") addresses that has caused issues since SegWit was introduced. Some exchanges/wallets were slow to implement the "bc1" address support and would complain that you were entering an "invalid" address, because they didn't recognise the address format. It's not such a huge problem any more. So, just select "BTC" as your network and your coins will show up in your Electrum wallet.

Lastly, why is the fee so expensive? 20$ seems a quit a lot. Am i doing something wrong...? Is there another way to minimize the fees? Should i create another wallet?

That's the exchange gouging it's customers and making ridiculous amounts of money Most of the exchanges use a "fixed" withdrawal fee system, and then do a "batched" transaction and make huge profits from all the withdrawal fees... on top of the huge profits they are making with the trading fees


Also, as Charles-Tim has suggested... do make sure that you read about the TrustedCoin 2FA wallet charges here: https://api.trustedcoin.com/#/electrum-help

A LOT of new users have been caught out by this "surprise" charge because they didn't read the fine print and didn't realise that TrustedCoin 2FA is not a "free" service. Note that these charges are in addition to any "normal" Bitcoin transaction fee that you would pay when you send coins from the 2FA wallet... they're also prepaid in advance... so the first transaction made when you have 0 credits will try and put an additional 0.0005 BTC or 0.00125 BTC charge to prepay for 20 or 100 "credits" (depending on what selection you have chosen, click the blue shield icon in the bottom right corner of Electrum to see the TrustedCoin options).

If the cost of this 2FA service seems to much for you, I would suggest that you create a new "standard" wallet before you send any coins anywhere.

[b1lly]

Thank you so much guys. Appreciate your answers!

[o_e_l_e_o]

In regard to your question about withdrawal fees, note that as HCP has said above, most exchanges (Binance included) have a flat fixed fee per withdrawal. If you are withdrawing 0.001 BTC, you pay 0.0005 BTC in fees. If you are withdrawing 100 BTC, you still pay the same 0.0005 BTC in fees. It is good practice not to keep your funds on an exchange for any length of time, since you expose yourself to risks of hacks, thefts, scams, account freezes and locks, and so on, but on the other hand, withdrawing multiple small amounts of bitcoin will end up costing you a lot in fees.* If you are planning to make small but regular bitcoin purchases, it might be worth withdrawing your coins once a month or so rather than after every purchase to save yourself some money.

*You will also end up paying more fees when sending these coins onward from your Electrum wallet. Each withdrawal you make in to your own wallet is classed as a separate "chunk" of bitcoin, termed outputs. These outputs will all be collected in your wallet, but will remain separate. Much like putting five $10 bills in your wallet - you have $50 in total, but each bill is very much separate. Only when you spend all these outputs of bitcoin together will they be combined in to a single output. Transaction fees are based on how many outputs you spend in your transaction, and not on the total amount of bitcoin you are spending. So sending five outputs of $10 each will cost you more in fees than sending a single output of any value.

[TryNinja]

Lastly, why is the fee so expensive? 20$ seems a quit a lot. Am i doing something wrong...? Is there another way to minimize the fees? Should i create another wallet?

Try FTX.com next time. If you have funds/money on Binance, you can sell them and send BUSD to FTX through the BEP2 chain for just a few cents. Then buy BTC (on FTX) and withdraw for free (they cover the network fee).