I need to send Bitcoin to Cashapp, but the fee is huge

[deus_vult]

There's this guy which I need to send a payment to and he said he's only accepting payments through cash app. Since I said I was going to pay him using litecoin, he said he can receive bitcoin in his cash app account only. So I've checked to see how much I'd pay in network fees, and the fee is too much. I tried to search for an alternative, but couldn't find any. Can anyone help me think about something to help solve this issue?

[hosseinimr93]

So I've checked to see how much I'd pay in network fees, and the fee is too much.

Currently, even transaction with 1 sat/vbyte are confirmed very fast and you shouldn't have to pay a high network fee.
Are you sending bitcoin from your own wallet or a custodial service like an exchange? Custodial services usually charge a high withdrawal fee.

[Charles-Tim]

The mempool is not congested at all. As hosseinimr93 commented already, the feerate is 1 sat/vbyte to get your transaction confirmed in the next block for now. With bitcoin around $39000, if the transaction is 1 input and 2 outputs, the fee should not be more than $0.05. You can use a wallet like Electrum that you can customize the fee but the fee should be low if estimated by the wallet.

You can see the feerate here: https://mempool.space/

Exchanges can charge high, like Binance that charge 0.0005 BTC ($19.5 if bitcoin price is $39000) as withdrawal high.

If using a noncustododial wallet, the transaction fee should be low, or customize the fee.
If using an exchange or custododial wallet, the withdrawal fee can be very high.

[hosseinimr93]

Exchanges can charge high, like Binance that charge 0.0005 BTC ($19.5 if bitcoin price is $39000) as withdrawal high.

Binance has decreased bitcoin withdrawal fee to 0.0002 BTC which is around 7.8 dollars at the current rates.
Of course, it's still very high and they are charging extra fee.


The image has been taken from binance withdrawal page.

[Charles-Tim]

Binance has decreased bitcoin withdrawal fee to 0.0002 BTC which is around 7.8 dollars at the current rates.
Of course, it's still very high and they are charging extra fee from the users.

Wrong information on this site, it was even 0.00059 BTC on site now, but I have noticed it to be 0.0005 BTC before. I just confirmed now that the withdrawal fee on Binance as of today is 0.0002 BTC, that is true. It would be good if such sites that aggregate the fee are more accurate. But the fee on many exchanges are still very high, just like the exchange called HitBTC that users have complained of freezed account and forcing KYC on customers.

[fortuner]

Exchanges can charge high, like Binance that charge 0.0005 BTC ($19.5 if bitcoin price is $39000) as withdrawal high.

Binance has decreased bitcoin withdrawal fee to 0.0002 BTC which is around 7.8 dollars at the current rates.
Of course, it's still very high and they are charging extra fee.


The image has been taken from binance withdrawal page.

Even though it has gone down, at that cost, it can't be said to be cheap.
They apply a high fee maybe because there are currently many withdrawal requests so the fee is still expensive.
It's better to just change to altcoins, maybe the withdrawal fee is even cheaper.

[BlackHatCoiner]

Can anyone help me think about something to help solve this issue?

Who told you that the fee is huge? A custodial service? Which wallet do you use? We can't help you if you don't provide additional information.

They apply a high fee maybe because there are currently many withdrawal requests so the fee is still expensive.

Nonsense. They do it to make money. You can have a transaction confirmed with just 1 sat/vByte currently, but they'll keep charging unbelievably high fees thanks to your ignorance.

[yhiaali3]

The best solution is to send from a Bitcoin wallet where you can control the fees you want to pay, you can use an Electrium wallet where you can reduce the fees for the network to a minimum, but in this case you will suffer from the slow transfer, but if you want to increase the transmission speed, you have to increase the fees and bear the costs Somewhat high, but in any case, the fees for the Electrium wallet are much lower than the fees for transferring from the exchanges.

[acroman08]

Even though it has gone down, at that cost, it can't be said to be cheap.
They apply a high fee maybe because there are currently many withdrawal requests so the fee is still expensive.
It's better to just change to altcoins, maybe the withdrawal fee is even cheaper.

custodial wallets tend to have higher fees than normal and just like what BlackHatCoiner said, they do it to make money and not because of "many withdrawal requests". also, the person who is in a transaction with OP said that his cash app can receive bitcoin and probably not altcoins since he never mentions anything about it.

[hosseinimr93]

They apply a high fee maybe because there are currently many withdrawal requests so the fee is still expensive.

When there are many withdrawal requests, they can even charge lower fees. They usually process multiple withdrawals in a single transaction.
Note that the fee you pay for a single transaction with 1 input and 100 outputs is lower than the fee you pay for 100 transactions with 1 input and 1 output.

......you can use an Electrium wallet where you can reduce the fees for the network to a minimum......

.......the fees for the Electrium wallet are much lower than the fees for transferring from the exchanges.

That's not Electrium. That's Electrum and the official website is electrum.org.
If someone reads your posts and then searches for that wrong name on google, there's a big possibility that he/she downloads a fake version of electrum.  

[mk4]

What hosseinimr93 said. I’m guessing you’re using an exchange like Binance that’s likely to over-charge for withdrawal fees. You shouldn’t be paying “huge” fees if you’re using a non-custodial wallet.

If you’re currently not aware on the types of wallets: https://cryptosec.info/wallets

[deus_vult]

I'm using Uphold wallet. I can use XMP Ripple or LTC to withdraw the money with small fees to the wallet you guys tell me to use, as long it's an android app or anything that can be accessed from a computer without an external device.

That's not Electrium. That's Electrum and the official website is electrum.org.
If someone reads your posts and then searches for that wrong name on google, there's a big possibility that he/she downloads a fake version of electrum. 

I was finding it weird that he wrote Electrium, I even searched for it and it was weird in the search results...

[mk4]

I'm using Uphold wallet. I can use XMP Ripple or LTC to withdraw the money with small fees to the wallet you guys tell me to use, as long it's an android app or anything that can be accessed from a computer without an external device.

Yea, Uphold is a custodial wallet as well. As for wallets, it’s going to be tough to look for a single wallet for all those coins. In general though, if you hold a good amount, go purchase a Ledger[1] or a Trezor[2] hardware wallet.

I was finding it weird that he wrote Electrium, I even searched for it and it was weird in the search results...

Typo. The linked URL is legit tho.

[1] https://ledger.com/
[2] https://trezor.io/

[DdmrDdmr]

<...>

Uphold states the following in terms of withdrawing bitcoin to another wallet from its web wallet:

Cost: $2.99 flat rate + 0.0003 BTC
Min: 0.00001 BTC

See: https://support.uphold.com/hc/en-us/articles/206118653-Account-funding-withdrawal-costs-and-limits-Classic-Web-Wallet-


I presume that is the scenario you are encountering. Nevertheless, cash app seems to only accept bitcoin in terms of crypto (see https://cash.app/help/us/en-us/3107-deposit-bitcoin-into-cash-app). If you are required to pay in crypto, it doesn’t look like there is a way around for this (at least if you pretend to pay from your Uphold account).

[deus_vult]

He gave me his bitcoin public address for the transfer, so it's basically a deposit.

[mk4]

He gave me his bitcoin public address for the transfer, so it's basically a deposit.

It’s a deposit to his bitcoin address, and at the same time it’s a withdrawal from your Uphold wallet.

But yea — you’ll have no choice for this instance, but if you don’t want to pay for such withdrawal fees in the future, use a non-custodial wallet.

[LoyceV]

I tried to search for an alternative, but couldn't find any.

I know nothing about "Cashapp", but you can send Bitcoin if you have Litecoin without a high fee by using an instant exchanger. Bestchange gives a large overview, but I can't vouch for most of them. I've used Fixed Float several times.

Binance has decreased bitcoin withdrawal fee to 0.0002 BTC which is around 7.8 dollars at the current rates.
Of course, it's still very high and they are charging extra fee.

So instead of 25 times more, they now "only" charge 10 times more than Kraken. They most have been losing business

[deus_vult]

I tried to search for an alternative, but couldn't find any.

I know nothing about "Cashapp", but you can send Bitcoin if you have Litecoin without a high fee by using an instant exchanger. Bestchange gives a large overview, but I can't vouch for most of them. I've used Fixed Float several times.

Binance has decreased bitcoin withdrawal fee to 0.0002 BTC which is around 7.8 dollars at the current rates.
Of course, it's still very high and they are charging extra fee.

So instead of 25 times more, they now "only" charge 10 times more than Kraken. They most have been losing business

How can I use Bestchange safely?

[LoyceV]

How can I use Bestchange safely?

Just like any centralized service: you can't be 100% safe. My solution is to only exchange small amounts at a time. If I lose it, it's not that bad, and if a certain exchanger would do an exit scam, they won't do it for the small amount I'm sending.
Note that Bestchange itself doesn't exchange anything: they only provide an overview of exchangers.

[deus_vult]

Hello guys, here's an update.
I asked him to reconsider and create an Uphold account, here's what he replied:

I looked over this, 7 days for an account which I was willing to do but the business application is asking for too much information and bank statements for just accepting payments. Whatever is used would be under a business account, not individual (like cash app). So uphold does not work for me.

This means there's hope for me, I just need to know a way that is easy for him to use with a business account.