Sometimes you want to move a cryptocurrency from one exchange to another. For example, I want to move some from Bitfinex to Bittrex, because unlike Bitfinex, Bittrex also supports SBD and STEEM.
However, if I try to move bitcoins, I would be slapped with a heavy withdrawal fee. So, it would be better to convert my currencies to the one which has the least withdrawal cost. So, which currency is the best for such purpose?
To know that we are going to look at the withdrawal fees of two major exchanges, Bitfinex and Binance. I also wanted to include Bittrex, but couldn't find a page where they have listed those. You can find all the fees of Bitfinex at [1] and of Binance at [2].
We are only going to see fees for major currencies, which are Bitcoin, Ethereum, Litecoin, Bitcoin cash and Ripple. The second and third columns show the fees as fractions of those currencies, while the fourth and fifth columns show the fees in equivalent dollar amounts. Also, I'm assuming here that you are not transferring big amounts, as in those cases, the transaction cost of converting from one to another coin could also become significant.
| Currency | Bitfinex fee | Binance fee | Bitfinex fee ($) | Binance Fee ($) |
|---|---|---|---|---|
| Bitcoin (BTC) | 0.0008 | 0.001 | 11.69 | 14.61 |
| Ethereum (ETH) | 0.01 | 0.01 | 7.48 | 7.48 |
| Litecoin (LTC) | 0.001 | 0.01 | 0.24 | 2.44 |
| Ripple (XRP) | 0.02 | 0.15 | 0.04 | 0.33 |
| Bitcoin cash (BCH) | 0.0001 | 0.0005 | 0.28 | 1.42 |
So who is the winner?
Obviously Ripple. Moreover, Ripple is also the fastest to transfer. So whenever for example, you want to transfer bitcoins (small amounts) from one exchange to another, instead of sending your bitcoins directly, convert them to ripples and send those ripples. On the other exchange, just convert those ripples back to bitcoins. As simple as that.
I hope you found this article useful. If you have any objection or suggestions, kindly let me know through your comments.
References
[1].https://www.bitfinex.com/fees
[2].https://support.binance.com/hc/en-us/articles/115000429332-Fee-Structure-on-Binance
This is a genius idea converting to Ripple and transfers it between trading exchanges.
I'm glad that you liked this idea :)
Interesting, I imagined, that I could convert into another currency with lower fees, but I was not sure, thanks for the tip
Thanks for the practical insights. When you say; "So whenever for example, you want to transfer bitcoins from exchange to another, instead of sending your bitcoins directly, convert them to ripples and send those ripples. On the other exchange, just convert ripples back to bitcoin then. As simple as that." Am i to understand that there is no fee, or a much lower fee, for transactions done on the exchange when compared to the fee for sending a simikar transaction? Thanks again!
Yes there is cost for that too, but its usually small. For example in Binance, it is just 0.1% or 1 thousandth of the traded amount. So, if you are transferring much less than 1 BTC, it would be better to convert to ripples and then back.
Thank you.
Dogecoin...
But Dogecoin is not considered a major coin, and is not even supported by all exchanges. For example, Bitfinex doesn't support it.
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How much you think the cryptos bitcoins rise amount!?
You mean how much is the withdrawal fee of Bitcoin? If this is indeed your question, than look at the table in my post.