Why exchanges are charging a big amount as transaction fee on withdrawal

[Vaskiy]

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

If this is the scenario surely then we can't make a plan with what is available in the wallet.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

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[jackg]

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

I normally just convert my coins to another currency on an exchange as they'll try to steal whatever they can anyway (0.0005+ btc transaction fees are quite unreasonable). If you can't work out a good currency to covert to, I normally use litecoin for low fees and high acceptance/liquidity from other exchanges.

[bittraffic]

If you needed the money and just want to convert it to fiat, why not use an altcoin instead like XRP, DOGE or stablecoin which is far cheaper in withdrawal fees?
The exchange will always have high fees in withdrawing BTC, Binance has 0.0005BTC. It's still considerably high for me. But you wouldn't be paying $50 if using altcoins.

[NeuroticFish]

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

Exchanges indeed have exaggerated fees for withdrawing bitcoin.
I don't know how up-to-date it still is (please check the exchange's fees in exchange's pages before depositing), but here's a list of exchanges and withdrawal fees: https://bitcointalk.org/index.php?topic=5079048.0
I've read at some point that although the exchange rate is worse, you may easily end up making a better deal with OTC exchanges.

And also (as already said here) keep in mind that if your end goal is fiat, there are other coins with much lower withdrawal fees you can exchange for fiat, you have to just pay attention.

[bakasabo]

You can also use https://withdrawalfees.com/ to check withdrawal fees and minimum amount to build a perfect path from exchange your funds are to exchange you wish to use. Just be careful with KYC and exchanges reputation (better check google for fresh pages with issues). Also, dont trust everything that is on the Internet. When you find best option for you, go to exchange and re-chech fees.

[HeRetiK]

Kraken has a comparably cheap withdrawal fee of 0.00015 BTC. Bitcoin.de lets you set your own fee, but it's a P2P market place that requires SEPA.

If you needed the money and just want to convert it to fiat, why not use an altcoin instead like XRP, DOGE or stablecoin which is far cheaper in withdrawal fees? [...]

Unfortunately Stablecoins are no safe bet either. Withdrawing USDT from Binance via the Ethereum network will set you back ~25 USD,- as well.

[davis196]

Because:
1.The crypto exchanges are greedy and want more revenue.
2.The crypto exchanges want you to keep trading on their platform and not withdrawing your coins.
Perhaps the best option would be to withdraw only big amounts of cryptocurrencies from the crypto exchange,instead of withdrawing small amounts multiple times and also depositing small amounts.
Like other forum members said,some exchanges have lower fees than others,there's no perfect solution.
You will have to find the crypto trading platform that suits you the best.

[bryant.coleman]

Unfortunately Stablecoins are no safe bet either. Withdrawing USDT from Binance via the Ethereum network will set you back ~25 USD,- as well.

Gas prices with the ERC-20 chain has remained at insanely high levels during the last one year or so and the developers have refused to intervene in a meaningful way. If you are using the chain despite all this, then you can't really complain. But I agree. Sometimes the user doesn't have the choice. Most of the bounty payments are being made in ERC-20 tokens. Established projects don't want to move from ERC-20 to some other cheaper chain, because they are not sure about the reliability and scalability of these competitors.

[paxmao]

Because they have to make a living bro! Just joking, 50$ for such an small amount is completely unreasonable, my take is that they take by default a high fee on regards of the likely costs of transaction and they assume those will be very high. If not... great for them.

The other posters have given you a solution, but doing some shopping for lower tariffs or a more considerate exchange would be advisable for yourself and to send the right message to the exchanges.

[Wexnident]

Probably try to find suitable coins with reasonably lower gas fees to convert into before trying to trade it into fiat. I use XRP or Litecoin most of the time, they're pretty reasonable with fees from what I've experienced. I'd reckon there's no really exact exchange that has low fees, they're all pretty high depending on the coin you're using. Honestly, fees are quite expected from exchanges, just that it's close to unreasonable at times really. Guess you just have to plan out most of your transactions do you don't get hit like this next time.

[CryptopreneurBrainboss]

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat...

Thought you were trying to exchange to fiat that's why you deposited to an exchange in the first place, why withdrawing from the exchange again don't the exchange have an option to trade to your local fiats? Lets assume you don't want to go with the suggestion of the above users of withdrawing through altcoins due to fear of market volatility then make use P2P service on the forum. We have those that'll be willing to accept your altcoins for Bitcoin with little charges. As usual always verify you're traded with a genuine trader.

For your question, exchange fees that's the reason although it doesn't justify the high fees this exchange are charging. Some exchange just doesn't care because there's no governing body to question them. Just stop using those exchange and move to a more convenient one with lesser fees.

[The Sceptical Chymist]

I normally just convert my coins to another currency on an exchange as they'll try to steal whatever they can anyway (0.0005+ btc transaction fees are quite unreasonable). If you can't work out a good currency to covert to, I normally use litecoin for low fees and high acceptance/liquidity from other exchanges.

Since OP didn't explain how he was going to convert crypto to fiat, it's hard to say whether converting his TRX to a coin with a lower withdrawal fee would have helped him, but I certainly see your point.  We'd kind of have to know which exchange he was using to withdraw fiat and whether a LTC-->fiat conversion is possible on it.

But yeah, 0.0009BTC is a pretty high fee, and personally I think it's excessive.  Obviously whatever exchange that was is making a profit from that, because it doesn't take that much to send bitcoin right now with a reasonably high network fee.  OP might have tried exchanging that TRX on the altcoin marketplace section.  I don't know how many trades happen there, but I'm pretty sure that he would have saved money had he found someone to trade with.

[HeRetiK]

Unfortunately Stablecoins are no safe bet either. Withdrawing USDT from Binance via the Ethereum network will set you back ~25 USD,- as well.

Gas prices with the ERC-20 chain has remained at insanely high levels during the last one year or so and the developers have refused to intervene in a meaningful way. If you are using the chain despite all this, then you can't really complain. But I agree. Sometimes the user doesn't have the choice. Most of the bounty payments are being made in ERC-20 tokens. Established projects don't want to move from ERC-20 to some other cheaper chain, because they are not sure about the reliability and scalability of these competitors.

Short of major updates there's little to intervene. Decentralized scalability is hard. When people in 2017 were praising Ethereum for its low transaction fees they mistook the lack of usage for better scalability. "Cheaper" chains are only cheap as long as no one is using them. Unless of course they are heavily centralized like XRP or BSC.

Then of course there's the question of compatibility. Not all exchanges may support all the blockchains that your stablecoin of choice is running on. So while you could withdraw the stablecoins to your wallet, you may still end up back on the exchange you started from.

[batang_bitcoin]

What exchange was that? if you want to convert that into bitcoin, there are a lot of choices that have a lesser fee than that was set to you. I think it's a combination for the network fee which is basically low and the remaining amount of the fee goes to the exchange and that's how they make a lot of money from us. Use instant swaps and compare their fees, they're better and directly will send to you the converted crypto that you chose.

[Bttzed03]

I normally just convert my coins to another currency on an exchange as they'll try to steal whatever they can anyway (0.0005+ btc transaction fees are quite unreasonable). If you can't work out a good currency to covert to, I normally use litecoin for low fees and high acceptance/liquidity from other exchanges.

Since OP didn't explain how he was going to convert crypto to fiat, it's hard to say whether converting his TRX to a coin with a lower withdrawal fee would have helped him, but I certainly see your point.  We'd kind of have to know which exchange he was using to withdraw fiat and whether a LTC-->fiat conversion is possible on it.

I would assume that his local exchange/custodial wallet only supports BTC to their country's fiat currency conversion. That was also the same case with us a few years ago until other cryptocurrencies with cheaper tx fees such as XRP were added.

[AicecreaME]

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

If this is the scenario surely then we can't make a plan with what is available in the wallet.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

The exchangers really have high fees most especially if you're going to withdraw BTC. I suggest you look up altcoins to convert it first before going in fiat. Personally, I use XRP because it has a relatively low gas fee compared to other coins. You can also check from time to time when is the best time to withdraw that has a lesser gas fee. Usually, it's around midnight during the weekends. Although it still varies. Hope this helps. You can check few articles about it too to make yourself more educated. Transaction fees are a pain in the ass, I feel you. Instead of having a bigger amount, the amount you can withdraw will be lesser because of gas fees. Because of course, the platform needs to profit as well. I just find it too much sometimes.

[jackg]

I normally just convert my coins to another currency on an exchange as they'll try to steal whatever they can anyway (0.0005+ btc transaction fees are quite unreasonable). If you can't work out a good currency to covert to, I normally use litecoin for low fees and high acceptance/liquidity from other exchanges.

Since OP didn't explain how he was going to convert crypto to fiat, it's hard to say whether converting his TRX to a coin with a lower withdrawal fee would have helped him, but I certainly see your point.  We'd kind of have to know which exchange he was using to withdraw fiat and whether a LTC-->fiat conversion is possible on it.

I would assume that his local exchange/custodial wallet only supports BTC to their country's fiat currency conversion. That was also the same case with us a few years ago until other cryptocurrencies with cheaper tx fees such as XRP were added.

I'm not sure on the security standards, and you need tor, but there's also bisq which mightve been a better option for op.

I've used it before for the same thing and I think I remember the system acting like a wallet so you can withdraw funds and set your own fee - I think the limit on altcoins was high as I converted over 20 ltc to ~0.1btc (but this is just how I've remembered it and don't really want to go back to installing tor).

[tyz]

It basically determines an oligopoly of crypto exchanges and accordingly there is no real competition, which explains the high fees. However,  there is more and more progress in the development of atomic swaps, i.e. transactions directly from one blockchain to another. This is the future of crypto trading anyway in my opinion. Moreover, it will be much cheaper because instead of three transactions (deposit, exchange, withdrawal) there will only be one and also more secure, as the intermediary (crypto exchange) will be eliminated.

[Dewi Aries]

It is really annoying to pay big amounts as transaction fee. Today myself encountered a pathetic situation. I was in need of money, and my wallet had $400 worth of TRX. I wasn't able to change it directly to fiat, and for this reason I deposited the entire TRX in an exchange and traded against bitcoin. Now on withdrawing it exchange took a transaction fee of 0.0009 btc and what is left is around $350 worth bitcoin.

If this is the scenario surely then we can't make a plan with what is available in the wallet.

Please post the exchanges with the low transaction fee and good trading volume. Maybe next time it'll help me.

Maybe my question is, in where you change your bitcoin to fiat and it is an exchange or p2p. Because if p2p and only accept btc, maybe you don't have any choice. But if there are some coins allowed, pick on USDT can be alternative. Because some chain only cost $1 of USDT to withdraw from exchanges. For example, my local exchanges allow some coins, when i withdraw from binance i use USDT on BSC or TRX network with only $1 fee.

[dothebeats]

This is the reason why I try to seek for p2p options when I want to convert my coins into quick cash. Some exchange platforms already have this, and they are IMO quite reasonable as opposed to the fees imposed by the platform itself. Also with it, the ones who will send the funds to my bank account would be a singular entity, and not a huge organization or a company which will surely follow with some questioning on the bank’s side as to the nature of the transferred amount.

Binance has a good P2P platform embedded within the exchange, though there will be times wherein the exchange rate is against you, but when compared to the fees imposed by binance, it is more economical and faster, too.