1

Problem

I bought btc on Binance and now to send them I’m being charged 22% (of $95) I’m sure it wasn’t that much when I might’ve used a different website in the past.

How are you meant to use btc?

  • I have minimal knowledge of crypto
  • I only use it to buy stuff
  • Any tips on how to do this in a beneficial/best way?

Are these rates sensible?

BTC % send fee
1 0.0005
0.1 0.005
0.01 50
0.02 25
0.03 17
0.04 13
0.05 10
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  • 5 mBTC withdrawal fees sound pretty insane. Also, is it possible that the upper two values are fractions while the bottom five are in percent? Lowering fees by a factor ten between 0.1 and 0.01 I could somehow fathom, but 50% to 0.005% seems like an enormous leap.
    – Murch
    Sep 27 '21 at 11:02
  • No, that’s really how it is, no fractions all %s.if you go on binance.com then to the withdrawal page and type those numbers individually then calculate the % from the fee shown that’s what you get.
    – Nickotine
    Sep 27 '21 at 11:14
2

From the values you present, it appears that Binance has a flat fee of 5 mBTC for withdrawals of less than 0.1 BTC. While transaction fees in Bitcoin scale with the data written to the blockchain rather than the value transferred, it is magnitudes more than the cost of creating a transaction output. In the past, flat fees of such amounts were not unheard of, but the exchange rate of Bitcoin has increased manifold since then. Assuming they already took a fee on the trade as well, it feels very expensive.

I would read their fee schedule as "only sizeable amounts please". You should look for another service with a different withdrawal fee policy.

You may want to consider that the trend is towards smaller on-chain payments being priced out. The increased exchange rate turns even small fees into substantial portions of the transacted amount. If you use Bitcoin to transact regularly, you may find the recent developments with the Lightning Network interesting.

4
  • Very good answer thanks. The only thing is I used a site in the past and the fee wasn’t so high. Also my payee is only using the btc network. Can you please share how you calculated the flat fee?
    – Nickotine
    Sep 27 '21 at 19:58
  • I eyeballed that 50% of 0.01, 25% of 0.02, 16.7% of 0.03, 12.5% of 0.04 and 10% of 0.05 all happen to fall on 0.005 BTC. ;)
    – Murch
    Sep 27 '21 at 21:02
  • Very nice eyeballing skills :) thanks
    – Nickotine
    Sep 27 '21 at 23:21
  • I did notice since that 22% of $95 would be substantially less than 5 mBTC, which seems to be in conflict with the values from the table.
    – Murch
    Sep 30 '21 at 16:54

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