Experienced withdrawal fees through Binance today for the first time and I was BLOWN away. This might be old news to some, but this is very new and very disturbing to me.
As many of you know, exchanges are not safe havens for your money. These hot wallets are connected to the internet and therefore, susceptible to a hack.
A cold wallet, like a Ledger Nano S or Trezor, can store coins offline and are much safer to guard against potential financial loss.
I was preparing to transfer coins out of Binance and into my Ledger Nano S when I experienced the ridiculously inflated fees.
In the example above, I chose RLC for a withdrawal. If you'd like to transfer 10 shares of RLC, you have to pay binance 4.1 shares leaving you with only 5.9 shares. RLC is currently trading at $2.80, so you're paying $11.48 to transfer $16.52 off of Binance. WHAT?! How does this logically make sense.
The problem is, these fees are fixed. So you're paying 4.1 shares whether it's 10 shares you'd like to transfer or 100 shares.
This doesn't account for the transaction fee you paid when you purchased the shares on Binance. At least that fee is a percentage, and a far smaller amount (0.10% or 0.05% if using BNB to pay). How come a percentage is used for transaction fees but a fixed share amount is used for the withdrawal? And additionally, if you transfer RLC out after it goes on a bull run and is now trading at $10 a share, you're now paying $41 to move your RLC out of Binance!
This just isn't right. The fixed share amount varies by coin, some more egregious than others...
Let me know if you agree and your thoughts on this.
