Minimizing fees while withdrawing and exchange transferring

[DennisChannels 238]

Note: I was considering to create a tutorial about how I minimize the withdrawal fees when operating with BTC and my first option was posting on "Tutorials", but due this is something that is mainly useful regarding exchanges, I finally posted here. Please, mods and admins, if you consider I should move this post, let me know.

 

Greetings, everyone.

 

Since I had to move some funds between exchanges, I started to study the best strategy to make every move the less costly as possible. Here are the results of my research.

 

Some considerations before starting:

 

• Exchanges are the best option to earn money active and sometimes passively. Trading provides great profit to those who knows how to make a correct interpretation of the charts, and have enough capital to invest and trade safely (this is, without compromising most of it and only assuming risks on the quantity you are willing to lose and you don't really need for living)

 

• Exchanges shouldn't be considered wallets. Most of us have our capitals in exchanges because value volatility (we want to sell when as soon as possible in case the price drops) and this is a common error. There are cases like KuCoin or BitFinex that shows greatly the impact of hackers and cyber-attacks on the exchanges. I suggest you to check some articles about this issue, for instance this cointelegraph magazine one (note it's a bit outdated, due considers KuCoin an unbeaten exchange)

 

Once said this, here we go.

 

As you may know, most of exchanges have features that make them unique. Some are easier (in terms of price, conditions and interface), others offer better advantages, saving and stacking benefits, discount using the exchange currency and multiple promotions, pools, launchpads, etc. Because of this, many times we will need to allocate different funds in more than one exchange and transfer part of our funds from one to another.

 

The problem is, transferring BitCoin (among other coins like ETH) is getting expensive. The fees are fixed in most of cases and I had the problem that fees represented sometimes even a 50% of the quantity I wanted to send. In some cases, if the exchange is not in the top 25, those fees are specially high, as a way to prevent the liquidity leak.

A strategy is needed, so first of all; know all the fees from the exchanges you are operating with. I recently found this list, I missed some of my exchanges, but I can tell it's real data.
 

As for me, I operate with Binance, OKEX, Coinbase, YoBit and Crex24. The reason is because some rare coins I hodl can only be found listed in some of them. But I also want to move my crypto to wallets, farms, hodling, casinos or whatever, so the logical steps I found are:

 

1. Identify the best cash-out platform. Once you get in, you should consider that before putting your crypto out the exchange environment, that exchange would be the platform to send it to anywhere. In my case, as for BTC, is Coinbase. For months, I believed it was too expensive, but then I realize that paying between 1.5 and 2 dollars (depending on the quantity, it can be bigger amount but always according to the volume you are sending) is fair enough to me.
   
2. If you want to transfer between exchanges OR if the place we are going to send crypto can easily convert from one currency to another, consider some low withdrawal fee options. My personal options are:
   
   • USDT - If the exchange allows the TRC-20 network, the cost is free most of times. For sending between Binance and OKEx is my option #1: there is no fee. In other Exchanges such Crex24 and YoBit, it's an option I totally discard: prices goes from $5.2 to $6.
   • Ripple - XRP is one of the most popular ways of moving BTC capitals due the low fee of transactions. In my case, sending from Binance or Yobit to Coinbase (due Coinbase doesn't have USDT listed) is the clear solution; fees goes between 0.25 to 0.5 XRP (roughly $0.06-0.12) minimizing costs.
   • EOS - Sometimes, EOS has even cheaper fees than Ripple. It's worth checking which is the best option.
      
3. Use always trade option and pay the price (trading fees and small price differences). Don't wait too much: once your funds arrive, even if there is a gap on the price (you'll realize between exchanges prices on charts are slightly different) convert it to the destination coin. Yes, if you wait a while and coin is uptrending, you can recover a good part of the fee or even earn some money, but most of times you'll pay higher fee than expected.
    

Try to simplify as much as possible, I had really hard times trying to find the best strategy and finally could made 3 simple steps for reducing fees.

I hope it really helps, I was thinking this is maybe too basic and most of you guys have your own ways (with similar steps). If it does, don't forget to leave your feedback and any strategy you think it can be useful or worth considering; the goal is not loosing too much money. 

 

Cheers!

Edited October 26, 2020 by DennisChannels

[DennisChannels 238]

5 hours ago, anh60p said:

I think TRX, XLM is also a good choice to help you reduce fees when withdrawing money

TRX is another good option, transferring from Binance to my wallet costed 1 TRX as withdrawal fee, no matter if you are transferring 100 or 10.000 TRX. Still USDT beats that in case of Binance and OKEX.

 

I'll check XLM next time I have to transfer, I want to compare. Thanks 😉

[Yomose 3704]

On 10/26/2020 at 9:19 AM, anh60p said:

I think TRX, XLM is also a good choice to help you reduce fees when withdrawing money

You are right, there are many cryptocurrencies  like that with very low withdrawal fee, I make use of digibyte frequently. But the issue is that there are many exchange that are not support these currencies. That is why I like ripple that its transactions are with low fee and it is instantly. 

[tienda 8776]

I agree with you @DennisChannels about XRP also XLM is cheaper for withdrawal fees. But I think in the website exchange the most important to check are the trading fees. because the withdraw is possible you will not do it every day, but about trading yes is every minute or hour...etc

[DennisChannels 238]

55 minutes ago, tienda said:

I agree with you @DennisChannels about XRP also XLM is cheaper for withdrawal fees. But I think in the website exchange the most important to check are the trading fees. because the withdraw is possible you will not do it every day, but about trading yes is every minute or hour...etc

That's true. If you are putting your crypto in a exchange is mostly for trading purposes. That's an important point and must be considered when the idea is to make money with scalping or average short-medium term trades. But in many cases, we use exchanges as bridge between our bank account (FIAT) and the crypto world. I don't like to use "buy crypto" options because due its volatility, the prices usually are fixed, outdated or charged with some administrative fees.

 

I'm studying right now, so I stopped dramatically trading; but sometimes I "shake" my crypto, for instance:

• I saw the DLRS price dropping to 0.00000070 today. I thought "This is a great moment for getting 4000 DLRS and use the InvestBox option."
• So I transferred around 0.003 BTCs from my saving funds in other platform. I bought the DLRS and I'm waiting patiently a pump while getting some profits on my risky investment.
• Assuming I turn those 0.003 into 0.0042 BTCs and I decide to put back those funds in the account, where I'm earning passively... moving the BTCs from YoBit has a fixed cost of 0.0012 BTCs, that means I will lose everything I earnt in 10 days (I could have made some profit hodling those satoshis in my savings account). Even if I earn 0.006, I'm loosing almost a 25% of that quantity, and almost the 50% of my initial investment.

Well, I'm not working now and also I'm not trading, so I'm trying to do some moves in my free time, avoiding exceptional charges and high fixed costs: I'm a poor guy who holds some crypto and tries to make it a bigger deal slowly...

 

[Irungu 4299]

on of the biggest problem I face today is having all my fees removed and in the end we have a huge challenge in transfering the same money or crypto into fiat currency so that every time I want to do that am always trying to deposit a fee, sometimes this becomes so expensive so it beats the logic as to how and why this all happens

[Mwangi 5611]

One of the toughest Jobs we have today is to have a good structure that does work for us , so today I think fees are a problem and as @Irungu has stated its difficult to identify a key to how you are able to convert your crypto into real money its very difficult to do do that

[DennisChannels 238]

1 hour ago, Mwangi said:

One of the toughest Jobs we have today is to have a good structure that does work for us , so today I think fees are a problem and as @Irungu has stated its difficult to identify a key to how you are able to convert your crypto into real money its very difficult to do do that

For me, Paypal was one way to start moving my money in a costless way, avoiding the "real world" step. Everything was done between my bank account and other Paypal accounts; I only needed the mail of the receiver and I was able to send and receive money with 0 additional cost. Of course, as we know "if you don't pay for something is because you are the product", so I guess providing my bank data was the price to pay.

 

Now Paypal is potentially turning into an important node in the communication between real world and crypto space. UpHold and Coinbase were for me those "cheap ways" to turn crypto into Fiat and send it to my bank account; now I guess it's even easier to operate in the real world with your crypto...

 

In some years, probably we will not need the real world for using and saving our money anymore.

[Poppisnop 428]

Yeah I think so, cos there many crypto currencies to choose from with low withdrawal and exchange fees just like Ltc litecoin, trx tron, and I do trade with them every minutes of an hour.

[Waseem jabbar 185]

You are totally right they are many crypto currency like that very low withdraw fee .like yobit is the interesting and grateful exchange in which the fee of withdraw is minimum.

[Abdulrahman3 1252]

There is no problem with this matter, to withdraw any amount of Bitcoin, you must convert the amount into a low-wage and stable currency at the same time, then withdraw it to the place you want and then convert it to the appropriate currency.

Edited January 22, 2021 by Abdulrahman3

[Samia Fatima 161]

Accourding to my experience  charges an issue and has expresse its hard. There ia no problem with this matter. I am used for coins and currency in exchange plateform and you want to comvert to appropriate currency. Thanks for sharing this information with us . Best of luck.

[joemcgwa 3227]

4 hours ago, NewUser01 said:

I want to ask one question if someone who cannot predict the chat or they cannot analyse the candlesticks is there any way for him to make trades and earn profit from it

Of course you can make trades even without doing the market analysis, but that's means you'll be placing those orders and expecting winning on luckily which is very risk,

[Irum shahzadi 296]

Personally I have not any idea about trading at this platforum I also new here but I have some knowledge about this platforum yobit is the best exchange for use we can manage it's transaction fee with waves currency .

[selfmade 7]

I go with XLM or stellar so called, this coin is not just the best option for having a low withdrawal fees but it is simply one of the best decentralized coins unlike most of the other options which involves centralized coins,

[Waseem jabbar 185]

Sorry I have no idea about it . But please give me the information about it. Actually i am beginner but also I know that yobit exchange is the best and secure exchange in the market.

[Fixfin 2569]

Very good post with information that is valuable to everyone, as we don't have to pay high fees when transfering from one exchange to another if we just want to send a few dollars worth of cryptocurrency. Paying ten dollars for a fifteen dollar transaction is not great for anyone, we can pay just a few cents instead.

[Alexbhatti 1492]

Thank you so much for sharing this very useful information about low fees of withdraw. You have explained very briefly and that all information are new for the beginners. I only knew about the low fee of Litecoin that I also have been using for withdrawal in YoBit site because it has only 0.002 LTC as withdraw fee.

 

[joemcgwa 3227]

On 1/23/2021 at 8:55 PM, Irum shahzadi said:

Personally I have not any idea about trading at this platforum I also new here but I have some knowledge about this platforum yobit is the best exchange for use we can manage it's transaction fee with waves currency .

I mostly like to be withdrawing from the yobit exchange through litecoin directly to localbitcoins so that's its simplify me to sell them to fiat currencies very fast. 

[cryptovlek 2597]

Good post, congrats for this one. I also try often to find cheap ways to move small amounts of money and depending on exchanges, I may select Dogecoin, Tron, XRP, Verge, Waves or a few more, however we should always be careful when transfering and be sure that the exchange we are sending, is accepting deposits of the selected cryptocurrency, and also look for the liquidity, because many lower exchanges may have terrible liquidity that will make us lose money by selling too low to offload the coins.

[Haley 832]

Many people are facing the issue of transferring the currency because they don't know how to minimize the cost of exchanges and transfers. Your post is easily understandable and it will help many people to minize fees and maximize profits. 

[Rozy 1918]

I really liked the point that talked about how exchanges are not wallets , I think that we all are guilty of committing this mistake and the reason you have mentioned is so true, we really tend to keep our coins on the exchange hoping that a change in price can occur at any minute and we want to take advantage of it as soon as possible, but this is a fatal mistake that may lead to losing all of your coins. 

[DC71 169]

Different cryptocurrency coins have low fees if you withdraw and make transaction like litecoin, xrp,  and tron. If you choose bitcoin and ethereum these coin transaction fees is huge because the price of these two coins are are high. Withdraw fees always important when you make  transaction

[selfmade 7]

On 1/28/2021 at 6:06 AM, Soomm said:

If you have traded crypto in crypto exchanges and want to withdraw them to your own wallet or transfer it to another exchange. You might be

surprised by the high withdrawl fees.

Well you do not have to go through those high fees, while you could just minimize fees buy using currencies with law fees, like litecoin, dogecoin, xrp, xlm, etc.