How to Reduce your Fees when Withdrawing BTC from Bittrex

in #steemit7 years ago (edited)

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In light of the recent surge in the price of BTC, some folks might have gone unaware of the fees practiced by some exchanges and trading platforms. @acydio pointed it out well enough in a recent post, highlighting the need for decentralized exchanges.

To be more specific and to give you one personal example, yesterday I withdraw about 7 SBD to bittrex. I wanted to exchanged it for bitcoin and later withdraw it from my wallet.

On bittrex, I got about 0.00518 BTC for it, which was worth, at that time, ~$84. I knew that the withdrawing fees at bittrex for BTC are 0.001 BTC, but I somehow failed to make the connection that 0.001 BTC was yesterday worth ~$17. And I withdrew, just to later realized that I paid that humongous processing fee.

Other exchanges practice similar fees for BTC.

I looked for potential methods to avoid this type of situation in the future. One of them would be to keep trading on bittrex and only withdraw when you have a large amount of BTC. Say, it might be reasonable to pay $16 fee if you withdraw $2000 worth of crypto money. This is, however, not a true workaround.

A better option is not to withdraw your crypto as BTC, but:

  1. Change it to (trade it for) ETH
  2. Withdraw to other wallets as ETH

And here's the current deal, bittrex's fee for withdrawing ETH is 0.002 ETH, which is currently $0.96. So, that's much more reasonable compared to the $16 fee for BTC. Similarly, you could trade BTC for LTC and withdraw as LTC, but I find that ETH fees are some of the lowest.

Bittrex and other exchanges maintain that their intention is not to profit from withdraws, and that each coin has a network transfer fee built into it, and that's why they charge a small amount to cover that fee. Whether or not that's trues, it's better if you avoid withdrawing BTC

If you know of similar tips, I'd be more than glad if you share them so that others can avoid these frustrating fees.


To stay in touch with me, follow @cristi


Cristi Vlad Self-Experimenter and Author

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jolly good shout @cristi ! excellent workaround. I didn't realise that it was a fixed price fee. makes sense to withdraw to anything with a less fee. litecoin is a winner at the moment :)

Awesome! Thank you for saving me some money!

Litecoin (LTC) is also a less expensive way to transact on Bittrex :)

Definitely, I specified that too!

Thanks bro, never though the withdrawal fee on bittrex was worth 17 USD. Keep posting!!

good post @cristi. keep sharing.

Nice your post @cristi about BTC, good Job Bro...

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