I have a question related to the withdrawal fee. I can find transaction fees, but not withdrawal fees in crypto platforms.

Could you please let me know how I can find out more about this type of fee? I am interested to see if its trend is smooth or volatile? Is that specific per platform/exchange or crypto asset. I could find various descriptions that I could not wrap around my head.

I wanna see if this fee can affect investors' decisions on liquidation and etc?


1 Answer 1


The intent of the original creators of Bitcoin was to create a currency where there was no need for trusted third parties like banks or other financial institutions.

If you use Bitcoin as money, in the way originally intended, there are no withdrawal fees because you can keep or spend money without withdrawing it from a business/institution.

Bitcoin is cash, not an account.

You could go against the intent of Bitcoin's creators and, instead of looking after your money yourself in your own wallet, you can give your money to a business and ask them to look after your money for you. That business is regarded as a custodian of your money.

Then withdrawing money means asking that business to give you your money back by creating a Bitcoin transaction to send to your self-managed non-custodial wallet an amount of money equal to the amount you originally gave them less any fees you agreed to in their terms and conditions when you created an account with them. This is like using an ATM to withdraw money from a dollar-denominated bank account as cash in the form of physical dollar bills (banknotes). But remember that Bitcoin was created so that you didn't ever need to use and trust a third party to look after your money or to spend it.

If, for whatever reason, you decide to trust a third party business to hold your money for you instead of holding it yourself, the fees they charge depend purely on the business you are dealing with. To find out about fees charged by a particular business you must communicate with that specific business.

I think it is simpler not to give them money, then there can be no fees.

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