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Do you know why the Coinbase bitcoin withdrawal fee is 10 times cheaper than my usual P2P Exodus transaction? Are they use the Lighting Network? How is it possible? For example, the Binance withdrawal fee is also in the range of a usual transaction.

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Most of the exchanges will charge a bigger fee, they are business and they need to make money, one way to make money in exchanges is by charging expensive fees.

Coinbase really has a cheap fee, it is because they decided to have this, maybe to attract more customers with their cheap fees, they can do that because when you are using the Bitcoin Core client, you can create a transaction to the network paying a cheap fee.

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    I downvoted, as I think this answer is confusing. If Coinbase is charging less than the network feerate to their customers, it simply means they're eating the cost. Using Bitcoin Core doesn't allow you to pay below market rate any more than other software. Jun 14 at 15:02
  • What I meant is using Bitcoin core you can create transactions paying the native fee and therefore that is much cheaper than the amount most exchanges use to charge. Coinbase fees are very similar to the amount of fee you use to pay using Bitcoin Core, therefore I think they do something like that, but as you said, they also may be eating the cost. Jun 14 at 16:09

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