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

[Nathrixxx]

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.

Paxful is one the the cheapest I've ever come across and worth recommendable with over 12, 000 trusted offers and vendors and having over 6 millions subscribers and all their Cryptocurrency conversion rate is 0.5%

Bank Transfer   0.5%   no fee
Credit/Debit Card   1%   no fee
Digital Currency   1%   no fee
Online Wallet   1%   no fee
Cash   1%   no fee
Goods & Services   1%   no fee
Gift Card  5% iTunes and Google Play cards
3% for all other gift card types no fee

External Wallet   $0 - $9.99 = 0.00008 BTC fee
$10 - $19.99 = 0.00016 BTC fee
$20+ = 0.0004 BTC fee   no fee

Internal Wallet   
Up to 1,000 USD per month for free (between all cryptocurrencies)
After 1,000 USD is reached, a fee of 1 USD or 1% of the amount being sent, whichever is greater, is applied no fee

More information and details regarding these were made available on Paxful

[qwertyup23]

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.

I think it is preferred if you convert your BTCs into another altcoin to lower the transaction fees. Remember that most miners get their compensation through processing the transaction that is why prices are relatively high. In addition, with the increasing price of BTC in the market, it is obvious that transaction fees would also increase.

Again, like what most have mentioned, better convert it into an another altcoin to at least lower the cost on your end.

[avikz]

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.

Exchanges are business entities so they simply do not want to incur losses while honoring the withdrawal requests from the customers. It is no doubt that transaction fees are indeed high for many currencies including bitcoin while ETH tops the list of the most expensive cryptocurrencies. No no doubt that the exchanges will have to deduct it from the customers.

It's high time for the centralized exchanges to adopt LN and Vitalik should fast track the migration to pos. If such high fees continues, cryptos will never emerge as an alternative to the mainstream finances.

[darewaller]

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 you should try making use of peer to peer exchanges whenever you are trying to exchange your money. Centralized exchanges are always going to charge high fees whenever you are trading. you can as well try binance.com or Kraken.

Moreover you didn’t mention the exchange that you were using that charged you a high fee. If you mentioned it,it would have been easy to know which exchange and also know how much fees they are charging you and then recommend the one that charges less to you, but I think Binance.com is a good option to go for, just check it out. Or you can just go for peer to peer exchanges, I think those ones will be better.

[Desmong]

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.

This fee is too much for an exchange to charge just because you are sending out your coin. You did not mentioned the exchange but I think Binance is still preferable than others that does not mind charging an exorbitant fee for only a small withdrawal. Try using other exchange that can satisfy your aim.

[wxa7115]

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.

They do it because they can and they can get away with it, decentralized exchanges have gotten more popular but they are nowhere near the popularity of centralized exchanges so they know they basically have a monopoly and they can do whatever they want.

Also exchanges want you to keep using their platform so charging huge fees is a way to discourage people like you from just deposing your coins and then withdrawing them a few hours or days later.

[Ultegra134]

Depends on the exchange, haven't made a withdrawal for quite a while, however, I haven't seen any extravagant fees on Binance at least. I've faced it on Bitstamp though, it's basically the main reason I abandoned the exchange. It was pretty ridiculous, withdrawing in stablecoin, such as Paxos or USDC would cost 20 coins, or basically at least $20, same goes for Bitcoin and Ethereum.

I'm not sure if it's just me, but these fees look way too much for a simple withdrawal. Bitstamp also had excessive trading fees, compared to other exchanges.

[harizen]

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.

Since you trade against Bitcoin, you will really end up paying an amount like that. You should try the alternatives, using other coins with cheap fees.

First, check the exchange you are using when converting to fiat, if stable coins are available there then trade against those. TRX also has a cheap fee to consider, you can end up trading those at Binance, for example, and check if TRX is available at their Funding (P2P) feature. If not, trade it against USDT then perform the P2P.

Disregard withdrawing on Bitcoin for now. As long as the BTC price is increasing, you will really end up paying high fees when converting it to USD value.

P.S As far as my Binance experience is concerned, the highest so far that I experienced is around $20 BTC withdrawal fee. Not sure about other trading platforms.

[pjwaffle]

I think if you need money and just want to convert it to fiat, why not use altcoins instead USDT, DAI, BUSD, USD. It is not recommended to use BTC because it is very expensive 0.005 BTC (very high fee compared to the current BTC price) per withdrawal. I think the BTC price reaches 100k$ or 200k$ they still don't reduce the Withdrawal fee is 0.0005BTC it will get higher and higher with the increase in BTC price. They do not want to reduce here is the participation of exchanges and want more revenue. We should all learn how to find the cryptocurrency trading platform that works best for us and how to properly withdraw fiat money to avoid unnecessary fees.

[Leviathan.007]

I usually do exchange my asset for another thing or use the cheap networks. For example, upon withdrawing BTC I have to pay too much fee but I exchange to USDT and if I use the erc20 version of usdt again I will have to pay too much so I'll try using trc20 blockchain or finance smart chain to reduce the fees. However, taking too many fees make sense for the exchanges because recently the network fees are changing too much and I remember a few weeks ago I had to pay more than 20 dollars for a transaction. On the other hand, If they put high fees the users will try to avoid withdrawing the money and they will have some income from each user whenever he withdraws his money. So, this makes sense to take a high amount of fees.

[nhaila]

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.

Especially when it comes to withdrawing tokens on Bitcoin and Etherium platforms, you have to face much higher transaction fees. The lowest rebellion in Bitcoin Withdrawal fees range from 300 to $ 400. It is very difficult to transact tokens with such a high withdrawal fee. Traders with small amounts who are getting this problem are getting annoyed with trading.

[Koro-Sensei]

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.

Luckily some of the institutions here that can convert crypto to fiat has XRP in their trading options. Super fast transaction with this guy XRP and low fees of less than a $ worth of withdrawal as well as trading fees. The problem is the conversion where 4-5% less than the market itself but still low compare to what other financial institutions are offering.

[Ultegra134]

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.

Luckily some of the institutions here that can convert crypto to fiat has XRP in their trading options. Super fast transaction with this guy XRP and low fees of less than a $ worth of withdrawal as well as trading fees. The problem is the conversion where 4-5% less than the market itself but still low compare to what other financial institutions are offering.

I haven't use many exchanges, so my feedback is limited to only a few. However, finding alternative currencies in order to move/withdraw funds is one way to save money. I used Stellar Lumens, as it was the most (or one of the most) efficient and profitable ways to move my funds (Approximately 2-3k dollars worth of Bitcoin), from Bitstamp to Binance.

I only paid a mere amount of XLM, compared to a few mBTC that was required to withdraw as Bitcoin. Despite the high trading fees, it was still worth it.

[jrrsparkles]

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.

This is same on every cryptocurrency exchange so if you want to minimize the withdrawal fee then you need to trade the cryptos with minimum withdrawal fee then convert into fiat. You can trade any altcoins for fiat on p2p exchanges which can save and withdrawal fee.

[jaberwock]

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.

Having to pay high fees for a transaction fee depends on a few things, which I think you will have to start considering from now on. First of all, the exchange you’re using ,it is possible that they may be charging a high fee for the transaction. So I will advise you to check out other exchanges and compare their fees with your exchange and know whether it is high or low. If it’s high, then you will have to switch to another exchange to avoid having to pay high fees for transaction. Next thing is that at that time you’re doing that transaction, it might be that the Bitcoin network is congested and that’s why the fees are high.