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

[Blawpaw]

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.

Yeah, I normally use LTC as well, but before all the dogecoin craze I would always use Doge to move coins from an exchange. In terms of speed and cost of transactions fees, Dogecoin was awesome. Now, I simply use LTC as it is fast and less costly. Remember that Exchanges are businesses that run for profit so they will always get their share. If there are none or close to no trading fees, then exchanges will surely have an expensive withdraw\deposit fee, that is simply how they work.

[Dread Pirate Roberts]

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.

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

The bitcoin fee on the exchange does feel very high . because the average exchange uses a fixed fee. and the high bitcoin price affects the total fixed fee as well. and I think this applied on many exchanges . except in your own wallet. maybe the best way to avoid this thing happen again to find out how to withdraw altcoin to your currency. because altcoins have much lower fees. such as LTC its less than $1

[xSkylarx]

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.

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

The bitcoin fee on the exchange does feel very high . because the average exchange uses a fixed fee. and the high bitcoin price affects the total fixed fee as well. and I think this applied on many exchanges . except in your own wallet. maybe the best way to avoid this thing happen again to find out how to withdraw altcoin to your currency. because altcoins have much lower fees. such as LTC its less than $1

I agree that this is a great tip for lowering fees. They mostly do it because they can profit from it. Imagine paying them for the security of your money as well as the use of their website. They will also implement a minimum withdrawal to ensure that they receive enough fees. Converting your coin into an altcoin is the best option for lowering fees and speed, as bitcoin currently has extremely high fees and traffic.

[Cadaver20]

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

The withdrawal fee of almost all crypto exchanges is the same. So you will not get the solution from crypto exchange. Instead, you need to find a coin that can be easily converted into fiat money. When I need money, I convert my crypto to Litecoin because its withdrawal fee is the lowest. Then i convert Litecoin to fiat money.

[Charles-Tim]

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.

If you check this link, I think he used HitBTC, a centralized exchange that always freeze customers coins even for no good reason. I was using the exchange before, it was my first exchange because verification is not needed until I realized the withdrawal fee was too much. Even withdrawing altcoin on the exchange will require high fee but no like bitcoin which is higher.

The withdrawal fee of almost all crypto exchanges is the same. So you will not get the solution from crypto exchange. Instead, you need to find a coin that can be easily converted into fiat money. When I need money, I convert my crypto to Litecoin because its withdrawal fee is the lowest. Then i convert Litecoin to fiat money.

Litecoin withdrawal fee can be low. But exchange fees are not the same although the withdrawal fee is higher than on-chain transaction fee paid to miners.

Press on the coin to check its withdrawal fee on the listed exchanges

Withdrawal fee on cryptocurrency exchanges

[Hamphser]

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.

Just convert it on other altcoins which does have less or low withdrawal fee then your problem get solved.Some exchange do really charged up much higher or simply set out fixed rates rather than on dynamic ones.

Some does have dynamic which means it will always vary on the pool or network condition.If you do find out that fees arent justfiable then you could always leave and choose for another one but if this exchange is

been long time you've been using then you could always make up some switch up with other coins to ease up the amount of fee that been charged.

[24Kt]

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.

If you check this link, I think he used HitBTC, a centralized exchange that always freeze customers coins even for no good reason. I was using the exchange before, it was my first exchange because verification is not needed until I realized the withdrawal fee was too much. Even withdrawing altcoin on the exchange will require high fee but no like bitcoin which is higher.

The withdrawal fee of almost all crypto exchanges is the same. So you will not get the solution from crypto exchange. Instead, you need to find a coin that can be easily converted into fiat money. When I need money, I convert my crypto to Litecoin because its withdrawal fee is the lowest. Then i convert Litecoin to fiat money.

Litecoin withdrawal fee can be low. But exchange fees are not the same although the withdrawal fee is higher than on-chain transaction fee paid to miners.

Press on the coin to check its withdrawal fee on the listed exchanges

Withdrawal fee on cryptocurrency exchanges

The link above is a very good one to save for comparison purposes of withdrawal fees among exchanges. I can see that hitbtc has really 90k sats fee which for me is really high. If the OP doesn't want to pay those fees in btc, there are p2p trading in kucoin and binance. Right now, kucoin has no compulsory KYC but of course if you will avail the p2p you need to comply with the KYC requirements. But if you will not avail their p2p and just trade, their btc withdrawal fee is lower than 90k. But you will already save fees if you will directly use the p2p trade. Up to the OP if he is fine with submitting KYC.

[Oceat]

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.

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

The bitcoin fee on the exchange does feel very high . because the average exchange uses a fixed fee. and the high bitcoin price affects the total fixed fee as well. and I think this applied on many exchanges . except in your own wallet. maybe the best way to avoid this thing happen again to find out how to withdraw altcoin to your currency. because altcoins have much lower fees. such as LTC its less than $1

I agree that this is a great tip for lowering fees. They mostly do it because they can profit from it. Imagine paying them for the security of your money as well as the use of their website. They will also implement a minimum withdrawal to ensure that they receive enough fees. Converting your coin into an altcoin is the best option for lowering fees and speed, as bitcoin currently has extremely high fees and traffic.

I believe a mempool have something to do with it especially when it's congested, exchanges tend to increase the transaction fee when using Bitcoin. That's why it's necessary to convert your Bitcoin to another altcoin that has small transaction fee to save more than spending more only for withdrawing Bitcoin.

I have done it so many times if I don't like the current fees on some exchanges that I used then I automatically convert it to another altcoin and it did save me a lot than using Bitcoin.

[Charles-Tim]

I believe a mempool have something to do with it especially when it's congested, exchanges tend to increase the transaction fee when using Bitcoin. That's why it's necessary to convert your Bitcoin to another altcoin that has small transaction fee to save more than spending more only for withdrawing Bitcoin.

I have used three exchanges before, two have static fee while you can adjust the fee on the third one. But what I noticed about the three exchanges is that the withdrawal fee is not adjusted as the mempool is getting congested or decongested.

I have done it so many times if I don't like the current fees on some exchanges that I used then I automatically convert it to another altcoin and it did save me a lot than using Bitcoin.

It depends on the amount you want to transfer. If you have $50000 or higher worth of bitcoin, you will never think of converting it to altcoins because the trading fee (conversion fee) would have taken more than the bitcoin withdrawal fee on the exchanges, the trading fee is in certain percentage of the amount you want to trade not an actual amount, so the higher the amount you want to trade, the higher the trading fee in amount.

[Strongkored]

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.

Because of the high withdrawal fees that finally make me trade more often on local exchanges that provide fiat, maybe the liquidity is not as high as other exchanges but if trading profits have to be cut by high withdrawal fees I don't think it's a pleasant one. Exchange uses withdrawal fees as one of its sources of income apart from trading fees.

My guess you uses HitBTC because only that exchange uses 0.0009 BTC as a withdrawal fee, the rest is lower but some are even higher than that number
source : https://withdrawalfees.com/coins/bitcoin

[Sanugarid]

They're all the same, just look for the one that has a lower fees, they need the fees so you can't blame them since they're a company, profit before the people first for them, you can't do too much about it because it's not a permanent thing, it's not like they're planning to stay that way, they know how it feels to pay absurd fees too.

[Fesatmas]

Unfortunately, so far personally, to withdraw crypto to fiat is still in good condition, unless we are on an exchange where the exchange is often referred to as a fake exchange. They allowed us to withdraw, but at a greater cost than I pulled.

I'll give you an example of one of the cursed exchanges I've used because I got coins from Airdrop and it took me half a year to meet the minimum withdrawal:

Note (I'm using a phone so the image display is the phone version  Sorry, the image display will be very annoying).

Exchange: https://bitcastle.io/









In essence, as traders, we must really choose and sort out the right exchange and not burden the user when making withdrawals.

[DaveF]

Outside of the obvious reason of because they can, there is also the simple reason that they can with the high prices get your transaction into the next block or 2 regardless of what the block chain does. Even over this last weekend for long stretches of time BTC fees of 1sat/b would have gotten you into the next block. And there were a few stretches of fewer blocks and more tx where it went to 15 to 20 sat/b for a while.

This way, they know you are in the next block, and they make a nice profit.

Not saying it's a good thing, but it is the way it is.
Years ago, you used to see threads about how long some exchanges took to send out payments, but they didn't take long, they had low fees and sent them at low fees and people had to wait. This caused people to start screaming SCAM or BAD SERVICE or whatever.

Now, you pay you fee and off it goes.

*All the above is in the general view, there are still exchanges that charge insane fees and send with low fees but if you look at a lot of block explorers you will see that when you can to transactions at 1sat/b there are exchanges paying 50x that.

-Dave

[Reid]

I am glad that the gambling industry is changing when it comes to withdrawal fees.
But, why is it that exchanges could not do the same?
I had the same problem for years but I never tried to talk about it.
I don't know why, I just swallowed the truth and just thought of it as where their profits will come from.
Most old-school investors want to keep Bitcoin but will regret the fees when they go out using its chain so you use other chains for lower fees but it's not Bitcoin, which is a big problem.

[Kakmakr]

Exchanges are actually the "weakpoint" for Crypto currencies, because it strips off all anonymity that you might have had and it is also very expensive to use. The moment when your tokens hits an exchange and it touches anything to do with Fiat currencies, you are getting screwed.

Some exchanges have deposit and withdrawal fees and also trading fees... so everything you do are charged, just like money in a Bank. I pay more or less 1% trading fees on all my transactions.... so you paid almost 12% in trading and other fees... to get it deposited in your Bank. (They also charge you a standard Bank transfer fee for money that are being withdrawn from their system) 

[justdimin]

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.

Because of the high withdrawal fees that finally make me trade more often on local exchanges that provide fiat, maybe the liquidity is not as high as other exchanges but if trading profits have to be cut by high withdrawal fees I don't think it's a pleasant one. Exchange uses withdrawal fees as one of its sources of income apart from trading fees.

My guess you uses HitBTC because only that exchange uses 0.0009 BTC as a withdrawal fee, the rest is lower but some are even higher than that number
source : https://withdrawalfees.com/coins/bitcoin

That "income" is actually just "making sure" and it is used in a different manner and not as profit and not even seen as profit. I have worked in an exchange before, and basically if it costs them 1 dollar to send but they charge 2 dollars for it, they keep that 1 dollar separate in a separate cold wallet, that way if one day anything unexpected happens with the fee situation, and it costs 3 dollars, they will not have to increase and still end up charging 2 dollars and spend that difference from the earlier profit.

This way if the fee is high they keep it same, if it is low they keep it same. People who pay too much end up paying for people who pay less, and exchange doesn't get anything. Or at least that is how it was in the exchange I saw.

[cheezcarls]

I just remember paying ridiculous high fees for just converting my crypto to fiat not just once, but multiple times as I had no choice. I was converting my BTC and ETH to fiat back then. Transferring it to my centralized wallet back then cost me more than $20 (sometimes up to $30) and then another additional fee for converting them to fiat.

Until I’ve lately realized that XRP was the cheapest option when it comes to transfer and conversion fees that is currently supported by the wallet. I mainly use Binance, and also other ones like Bityard, etc.

[ice18]

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

Can you please tell us, what exchange are you talking about? I just use FTX exchange days ago and withdraws amounting to only 0.00068 btc and deducted me 0 fees on my withdrawal. Sounds pretty good right? You should ask here first before trying to withdraw if you don't want to pay that huge fees; so that we can suggest other exchanges like I mentioned above.   

[el kaka22]

The problem with exchanges is that they are keeping billions of dollars worth of money in their own accounts, you are shown that you have some money there, but the reality is that as long as you do not withdraw that money is theirs to use and you are just given some digital proof that you have money in their accounts. Withdrawing becoming more expensive is because they want you to keep your money with them as long as possible, they are a great business model as long as they keep those billions of dollars in their accounts instead of letting you withdraw it.

Eventually exchanges will be like banks, most of them are like that already I am sure, where if everyone withdraws all their money all at the same time, economy crashes and they bankrupt because I believe not all of them have the crypto and fiat they claim they have and they have less. So, if we all withdraw all at the same time, they will not be able to pay us all and that will show how weak they are in reality.

[michellee]

I am sure many of us have that experience paying a high fee for the transaction. But we can not do anything except following what the exchange wants. Fortunately, we have many coins at the exchange and we can select which coin has a low fee of the transaction so we can reduce the fee itself.

When we want to select one coin for the withdrawal, we should agree with the fee, whether high or low. We do not have bitcoin to withdraw if we feel that we have a high fee in the transaction instead, we search for the other coins.

So far, I use Binance to trade and I am good with their fee because I can select my own coin to withdraw. I think you should have the other alternative coin for withdrawing.