How to save on Bitcoin and other crypto fee when moving funds between exchanges ?
Let us save some crypto withdrawal fee
Well folks if you are dealing with crypto exchanges then chances are you have been depositing and withdrawing your crypto's from one exchange or the other.
At times there may be a need to withdraw your funds to fiat or you need to move funds between exchanges for trading.
If you are transferring hundreds of dollars worth of crypto that is you are the big crypto whale then you would not mind paying a 4-5$ worth of bitcoins for moving a 1000 bitcoins.
However what if you are the common Joe whose wants to move the princely sum of $20 in bitcoin from exchange A to B
Well in this case the $4.5 feed for moving $15- $20 worth of crypto looks insane.
It works to almost 20% of the capital and sure feels like burning a hole in the pocket.
So here is what to do to avoid paying a big fee.
Fee is optical
If you have to transfer cryptos like Bitcoin, ETH , USDT you are better off first checking the withdrawal fee for the exchange that you are dealing with.
If the fee amounts to $ 4-5 you are better off making larger transfers that amount to $100- $200 or more.
This is the option if the idea is to make the transfer in one of the high fee crypto currencies.
An alternative is switch pairs
Suppose you want to transfer 20$ worth of BTC or ethereum between exchange A & Exchange B
The withdrawal fee works to ~$5 then what do you do?
- First check the withdrawal fee and the minimum amount you can withdraw.
All reputed exchanges like Binance list the deposit fee, withdrawal fee and the minimum crypto you can withdrawal.
So if you want to withdrawal $5 BTC from an exchange and the withdrawal fee is $5 so you get $0 so no point withdrawing BTC or ETH
However there is a work around.
Look for alternate trading pairs.
Look for currencies like Doge coin, Tron or some other coin that is cheap like 30 or 50 Satoshi or even less.Or a 2-4 cent coin would also do.
The criteria is it should be traded on both exchanges and also double check if it has a significant trading volume.
Also check if the withdraw and deposit address are enabled on both exchanges for your chosen coin.
Sometimes you may find a coin or a token is trading however its deposit or withdrawal wallet is under maintenance.
Skip such a coin and move on to the next candidate.
Next check the withdrawal fee for this coin.Suppose the chosen coin is tron or Dogecoin you may find the withdrawal fee is only 1-2 tron or doge coins.
So if the coin meets all the requirements that is
i) it is trade-able on both exchanges
ii) Has significant trade volume on both exchanges that is it is actively traded and
iii) Has a low withdrawal fee.
So if you choose a coin/token that is valued at 2 cents against the dollar and the fee to withdraw your coins is 2 coins you end up paying only 4 cents to make a withdrawal.
Next you trade your BTC ETH or what ever high fee coin you want to withdral against this chosen coin.
Once traded you can transfer the low withdrawal fee coin to the second exchange and this moving of crypto would cost you much less.
At exchange B you can convert your coins / Tokens back to whichever crypto /fiat option you prefer.
You can consider trading on Binance for a trusted and user friendly experience.
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