Network Choice And Different fees

[mjch12000]

Hi
Does anyone know which Network option best
I want to transfer to my electrum wallet from Binance
they give me option of Network
 options are
BEP2
BEP2 (BSC)
BTC
ERC20

each one has different fee amount and all get warning message saying
transfer network
charged and withdrawn on the same network otherwise the currency withdrawal  cannot be successful

so does my electrum wallet support all of these

[1714996762]

1714996762

[1714996762]

1714996762

[ranochigo]

Electrum only support Bitcoin, forks of that may support certain altcoins but they're neither supported not endorsed by the developers.

[LoyceV]

BEP2
BEP2 (BSC)
BTC
ERC20

There's only one Bitcoin. Crypto is all about "be your own bank" and "not your keys, not your coins". All those tokens they offer mean you're not withdrawing Bitcoin, but you basically get a promise from someone who may or may not disappear in the future.

TL;DR: Use BTC and Electrum.

[LoyceV]

BEP2
BEP2 (BSC)
BTC
ERC20

Those options are surely wrong.

Nope, you're wrong. When withdrawing Bitcoin, Binance gives those options:

I think you definitely have Ethereum / ERC20 token

OP has Bitcoin, but Binance is trying to give him their own (or Vitalik's) made-up tokens instead. They charge very high withdrawal fees on the real Bitcoin to promote their own centralized shitcoin.

[BitMaxz]

Thanks a lot for correcting me, I've never used Binance. I always use payeer's exchange and never heared for binance's own bitcoin alts .

I'm actually using Binance and almost all coins there have an option of these from the Binance chain, TRC20, BEP2, and ERC20 on withdrawal.
I'm using some of them TRC20 and BEP2 just to reduce the withdrawal fee when transferring them to another wallet or in other exchanges like Okex they support TRC20 for depositing.

I think the reason why they have these options is to help the community or traders to get fewer fees if they are going to withdraw them or transfer to another exchange. This is their solution for congested blockchain networks and high fees.

[pooya87]

The additional options are not exactly for "withdrawal" but for "transferring" coins. For that reason they are useful for traders.

For example imagine if bitcoin price on Binance was higher than bitcoin price on X. You can technically transfer bitcoin to X using one of these centralized shittokens that are cheaper and fast to transfer bitcoin to X and sell it there, then you can also use X to transfer the money back to Binance using another centralized shittoken like USDT and then buy back bitcoin on Binance and make a profit.
This is called Arbitrage trading and is one of the only reason why centralized shittokens have gained popularity despite being terrible and shady like tether.

[dkbit98]

so does my electrum wallet support all of these

Electrum wallet only supports BTC chain that is real Bitcoin, and when you withdraw it to your wallet you will own it and you will have full control with your keys.
All other chains are centralized and CZ Binance or someone else can decide at any point to block or freeze your coins if they think you or your transactions are suspicious or if they have server overloads.
It is true that fees are much smaller on other chains because CZ is trying to force people to use his bnb coin and pump up the volume and transactions artificially.
One solution is to use bnb chains only temporary, send coins from Binance to FTX exchange, and than withdraw original BTC without paying any fees.

[LoyceV]

I think the reason why they have these options is to help the community or traders to get fewer fees

That's quite naive. Their own centralized coin is now worth $100 billion. If they wanted the community to have lower fees, they could simply reduce withdrawal fees.
They've created their own coin to make themselves rich, which is exactly the same reason for which thousands of other coins have been created.

I'm using some of them TRC20 and BEP2 just to reduce the withdrawal fee when transferring them to another wallet

If you transfer Bitcoin to a wallet, you know for sure it will still be there 50 years from now. If you transfer some made-up token on a private centralized chain, it could be worthless tomorrow. Keeping those private tokens is just as dangerous as keeping your coins on an exchange: "not your keys, not your coins"!

Now imagine a few more parties want a piece of the pie. What's next: dozens of different withdrawals options to confuse users away from using the real Bitcoin?

[hosseinimr93]

If they wanted the community to have lower fees, they could simply reduce withdrawal fees.

Correct.
Their current withdrawal fee for real bitcoin is 0.0005 BTC.
Below is the latest withdrawal they processed.
5d9581fda56163472b4f78bc1de9828d19a48f8aa88bba5b8edbfb48dddbf4db

The fee they paid to miners is 0.00357 BTC and there are 100 outputs.
The fee they got from users is 0.05 BTC. This is 14 times the fee they paid to miners.
The withdrawal fee could be 0.0000357 BTC instead of 0.0005 BTC.

[ranochigo]

Correct.
Their current withdrawal fee for real bitcoin is 0.0005 BTC.
Below is the latest withdrawal they processed.
5d9581fda56163472b4f78bc1de9828d19a48f8aa88bba5b8edbfb48dddbf4db

The fee they paid to miners is 0.00357 BTC and there are 100 outputs.
The fee they got from users is 0.05 BTC. This is 14 times the fee they paid to miners.
The withdrawal fee could be 0.0000357 BTC instead of 0.0005 BTC.

Their fees are fixed, they do not impose deposit fees.

For starters, I believe that they should impose variable fees so that the fees can be varied as and when needed and that they should charge each deposit a proportional amount of fees for it to be moved and consolidated (and depending on their structure, it might take a few transactions). Depends on when you withdraw, the total fees could be far lesser or higher than 0.0005BTC. Doing something like this could possibly hurt their revenue, if they do gain any from overcharging their users.

Vote with your wallet (figuratively) if you want something to change.

[LoyceV]

they should charge each deposit a proportional amount of fees for it to be moved and consolidated

I've made a similar post before: I only know of one exchange that charges a deposit fee on "small" amounts, and in my opinion it's the most fair system.

Doing something like this could possibly hurt their revenue, if they do gain any from overcharging their users.

Their interest is obvious: they want to control more coins. By making deposits free and withdrawals expensive, they get more in their cold storage. Even better, if they convince users to accept their own made-up token instead of real coins, they get to keep even more coins.

[hosseinimr93]

Their fees are fixed, they do not impose deposit fees.

It's true that they don't charge any fee for deposits.
In fact, they (and almost all other exchanges I know) waste a lot of money for consolidation of deposits and instead charge a very high withdrawal fee.

Below is the latest transaction they made for consolidation of deposits.
9b0f29a7e27d448c8b9f83a79696c0b18bd4bdb8144ebfc082b609ccda962596

They made the transaction with 84 sat/vbyte.
This transaction could be made on the weekends with less than 10 sat/vbyte or even less. I don't think they have to hurry for consolidation of funds.

[ranochigo]

They made the transaction with 84 sat/vbyte.
This transaction could be made on the weekends with less than 10 sat/vbyte or even less. I don't think they have to hurry for consolidation of funds.

I mean, it's perfectly fair for them to be doing so actually. You won't know how the exchange actually functions unless you're working for them. Simple things like regular consolidations could very well be why they don't usually have to take the funds from their cold storage and reducing the hassle. Liquidity is a huge issue with exchanges dealing with huge volumes, and I have no doubt that only consolidating when the fees are low would have unintended consequences.

IMO, none of us are qualified to dictate how an exchange should function. We don't have any clear understanding of their workflow and can't really dictate how they should conduct their business. If you can't agree with their practices, then probably just shifting away from the exchange would be better.