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I'm a bitcoin newbie and think that I am missing something. I'm based in Australia although I'm not sure if that matters. I would like to buy and hold for an extended period some bitcoin and ether. I would prefer not to use the exchange's wallet or storage. Will I be charged a fee to withdrawl and use my own cold storage?

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There isn't really a notion of "withdrawing" from cold storage. Bitcoin isn't a bank and you don't make deposits and withdrawals. You have some coins in an address, that's all, and you can spend them any time you like. The only difference with cold storage is that you are storing your private key on a piece of paper / USB stick / offline computer / etc, so you will have to do a little more work to spend the coins.

Spending coins from cold storage just requires a transaction, and every transaction requires a transaction fee. But this would be the same fee no matter whether you were keeping your keys in cold storage or in a web wallet or on your smartphone.

(You might find older resources suggesting that coins which have stayed in the same address for a long time can be spent without fee, due to the transactions being higher "priority". This is not true anymore due to the current shortage of block space.)

  • Thanks but I guess my question is more when I purchase the coins will the exchange charge a withdrawal fee if I move the coins out of there system. – WsD2015 May 30 '17 at 0:06
  • To move coins out of their system and into your wallet, a blockchain transaction is needed. Such transactions require a fee. The blockchain does not know or care whether that's from an exchange to you or something else. – Pieter Wuille May 30 '17 at 0:07
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    By the way, this only means that the exchange would need to pay a fee for the transaction. They may or may not pass it on to you, and may or may not charge an extra fee of their own. These things depend on the exchange, and are hard to write a generic answer for. – Pieter Wuille May 30 '17 at 0:23
  • Great thanks so much. Well now its time to narrow down the exchanges. – WsD2015 May 30 '17 at 0:44
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If you withdraw from a popular exchange such as Poloniex, the fees for withdrawal is 0.0001 BTC. Please refer this page for cold storage:https://en.bitcoin.it/wiki/How_to_set_up_a_secure_offline_savings_wallet

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