Navigating the world of cryptocurrency transactions involves understanding different types of fees. This article clarifies the distinction between network fees (also known as gas fees) and exchange fees, helping you make informed decisions about your transactions.
What are network fees (gas fees)?
Network fees, or gas fees, are charges paid to the blockchain network for processing your transaction. These fees are not collected by Binance.US, but rather by the miners or validators who maintain the network.
Purpose: Network fees incentivize miners or validators to include your transaction in a block, ensuring it's recorded on the blockchain.
Variability: Network fees fluctuate based on network congestion. During periods of high activity, fees tend to increase, while during periods of low activity, they decrease.
Network-specific: Each blockchain network has its own fee structure. For example, Ethereum network fees are often referred to as "gas," while Bitcoin network fees are simply called "transaction fees."
Independent of exchanges: These fees are determined by the network, not by Binance.US.
Strategically timing your transactions during periods of lower network activity can significantly reduce network fees. For example, transferring Ethereum during non-peak hours may result in lower gas fees due to reduced congestion.
Examples:
When you send Ethereum (ETH) or an ERC20 token, you pay a "gas fee" to the Ethereum network.
When you send Bitcoin (BTC), you pay a "transaction fee" to the Bitcoin network.
When you send a token on BNB Smart Chain, you pay a "gas fee" in BNB to the BEP20 network. (This is not associated with Binance.US)
What are exchange fees?
Exchange fees are charges levied by Binance.US for using our services. These fees are separate from network fees and are used to cover the costs of running our platform.
Types of exchange fees:
Trading fees: Charged when you buy or sell cryptocurrencies on our exchange. These fees may vary depending on your trading volume and the type of order you place.
Withdrawal fees: A small fee that covers the exchange’s operational costs of processing a withdrawal. This fee is in addition to the network fee. For cryptocurrency withdrawals, these fees include blockchain network fees directly paid to the network and operational fees collected by Binance.US. The fee amounts can be seen on the "Preview Withdrawal" screen before confirming a transaction.
Note: There are no fees for ACH deposits and withdrawals on Binance.US! This fee applies to crypto withdrawals/sends.
Deposit fees: Binance.US generally does not charge deposit fees for most cryptocurrencies. (Please see our fee schedule for specific details).
Transparency: Binance.US provides clear information about our fee structure in our Help Center article titled, "What Are the Trading Fees on Binance.US".
Binance.US specific: These fees can vary and are scenario or product dependent. For example, wire deposits and withdrawals may have a set of fees that differ from exchange to exchange.
Key differences summarized:
Feature | Network fees (gas fees) | Binance.US fees |
Paid to | Miners/Validators on the blockchain network | Binance.US |
Purpose | To process and validate transactions on the blockchain | To cover operational costs related to providing exchange services |
Variability | Fluctuates based on network congestion | Determined by our fee schedule |
Control | Outside of Binance.US' control | Set by Binance.US directly |
How to minimize fees:
Network fees:
Monitor network congestion and transact during periods of lower activity.
Utilize networks with lower transaction fees, if appropriate for the token you are transacting with.
Exchange fees:
Review our fee schedule to understand the costs associated with trading and withdrawals.
Consider your trading volume, as many exchanges offer reduced fees for high volume traders.
Choose compatible networks that have lower transaction fees, ensuring your receiving wallet supports these networks beforehand.
Important: When you initiate a withdrawal from your Binance.US wallet, you will see a breakdown of both the network fee and the exchange withdrawal fee (if applicable) before confirming the transaction. Always double check the total fees before confirming any transaction.
Each transaction you initiate will include a detailed breakdown of all fees, such as network and withdrawal fees, ensuring complete transparency before you confirm.
Frequently Asked Questions
Why were withdrawal fees deducted from my transaction?
Both Binance.US operational fees and network fees are deducted from your withdrawal amount before it reaches your destination wallet. Review the breakdown during the confirmation stage to understand deductions.
Does Binance.US profit from high crypto withdrawal fees?
Binance.US does not collect gas fees; these are paid directly to blockchain miners or validators. Any operational fee collected supports processing costs.
Can withdrawal fees on Binance.US change based on timing?
Yes. Network gas fees fluctuate based on blockchain congestion, which varies depending on global transaction activity. Choosing less busy hours can lower these fees.
How can I avoid high blockchain withdrawal fees?
Beyond timing your withdrawals during non-peak blockchain hours, you can convert cryptocurrency to USD and transfer funds directly to your bank account, where no transaction fee applies.
Can I know the exact withdrawal fees upfront?
Yes, total fees are displayed on the Preview screens before you complete any transaction. Reviewing this ensures you understand all costs, including gas fees. Always review the "Preview Withdrawal" screen carefully to understand both direct and indirect costs, ensuring you are fully informed before completing a transaction.
If you have any questions about network fees or exchange fees, please start a conversation with our Support team. We're always here to help!
Disclaimer: Cryptocurrency transactions involve risks. Always do your own research and exercise caution when transacting with digital assets. Binance.US is not responsible for network fee fluctuations.