Experienced withdrawal fees through Binance today for the first time and I was BLOWN away. This might be old news to some, but this is very new and very disturbing to me.
As many of you know, exchanges are not safe havens for your money. These hot wallets are connected to the internet and therefore, susceptible to a hack.
A cold wallet, like a Ledger Nano S or Trezor, can store coins offline and are much safer to guard against potential financial loss.
I was preparing to transfer coins out of Binance and into my Ledger Nano S when I experienced the ridiculously inflated fees.
In the example above, I chose RLC for a withdrawal. If you'd like to transfer 10 shares of RLC, you have to pay binance 4.1 shares leaving you with only 5.9 shares. RLC is currently trading at $2.80, so you're paying $11.48 to transfer $16.52 off of Binance. WHAT?! How does this logically make sense.
The problem is, these fees are fixed. So you're paying 4.1 shares whether it's 10 shares you'd like to transfer or 100 shares.
This doesn't account for the transaction fee you paid when you purchased the shares on Binance. At least that fee is a percentage, and a far smaller amount (0.10% or 0.05% if using BNB to pay). How come a percentage is used for transaction fees but a fixed share amount is used for the withdrawal? And additionally, if you transfer RLC out after it goes on a bull run and is now trading at $10 a share, you're now paying $41 to move your RLC out of Binance!
This just isn't right. The fixed share amount varies by coin, some more egregious than others...
Let me know if you agree and your thoughts on this.
That is ridiculous! I'm just now trying to get into Crypto, so I haven't experienced that yet. I have a Binance account, but it doesn't have anything in it at the moment. I did my first trade today on HitBTC with the DASHCoin that I got from MinerGate, so I'm pretty excited about that! Anyways, feel free to follow my progress as I try to make some money without putting any fiat money into it :)
It is! Best of luck. It's a lot of fun. I just followed and look forward to following you on your journey :)
Maybe this may help you. I trade there. The fee you pay is set like you said. If you trade more expensive coins youll see the bnb token is a good idea to avoid dust. Since it offers a discount it is even more reasonable. The fee i perceive differently. I only withdraw what i need and when. Limiting the transactions, i am thankful when trading bitcoin they dont ask for more. It seems to be a matter of perspective. They have been good about not changing them though. Some get greedy.
Thanks for sharing. You use BNB for withdrawing? I've only seen it as an option to use when trading, not withdrawing. If so, that would help but it doesn't appear to be an option because I use BNB to pay fees with trade but it takes shares of the coin you are withdrawing when pulling it off the exchange.
I also try to limit the withdrawal but remember that it's riskier to keep coins on an exchange vs a cold wallet. So if you plan to hold on to coins for a while, it's best to withdraw them off Binance.
Absolutely. Your HODL coins probably should not see an exchange. But all i meant to say was the bnb tokens save you on fees and they eliminate that dust. I hate that dust. It limits loss. The withdrawal fee you are correct uses whatever token you are withdrawing. Usually if you convert them to a coin like ethereum or neo and do one withdrawal you will notice it is negligible. I do believe there is NO fee for neo. Maybe try that.
It is high to pay 20 or a hundred for your own money. But the banks rob us of our wealth and interest. The fees are straightforward and tolerable in comparison. I guess itll do so long as they dont change in the night. Lol. Good work brother. Im gonna follow ya!
Thanks for the tips about neo and eth. I will definitely try that. You are 100% right- it's all about perspective and this is a much better option than what we're experiencing with the banks.
As a tiny little minnow, the fees hurt now but hopefully that will get better after this correction :)
Following you as well- looking forward to seeing more from ya!
Binance Exchnage is listing many new altcoins.
Binance has the highest marketshare today. Read Binance Exchange Review to know more.
Im totally with you on this, I have some Vibate and Funfair on Binance, and to withdraw them to MyEtherWallet we are talking 10% of the value, a ripoff indeed!
I dont really know what to do about it tbh. For the moment Im leaving the crypto in there and avoiding using the exchange just for this reason.
If the coin is on Crytopia, then trade there instead. The withdrawal fees are very small, however you may find yourself with a beard by the time they land!