Moving from an exchange to a wallet – fees

Bitcoin Questions and AnswersCategory: General questionsMoving from an exchange to a wallet – fees

Dan Weissmann asked 2 years ago

I am still awaiting my hardware wallet. Apparently many of the companies that produce these are backlogged. Meanwhile, my bitcoin and ethereum sits on Coinbase. It seems generally thought that its not a good idea to leave your coins in an exchange. So, I downloaded Mycelium.

Since I’ve never transferred bitcoin before, I decided I’d risk $10 and see if I did it correctly. The $10 was transferred without a problem, but I was charged over $2 in fees. Wow, that is 20%.

I am now reluctant to transfer any more over to Mycelium and am thinking that if I have to pay fees every time I move my coins somewhere else (which I normally do not have to pay when electronically moving digital fiat such as Paypal or between banks), I should just bite the bullet and wait to receive my hardware wallet sometime next month. I also wonder, if you pay a lot of your bills in bitcoin, it would be costing you more (not necessarily 20%, I know), so why do things that way?

Waleedsalem replied 2 years ago


2 Answers
Zsofia Elek answered 2 years ago

Hi Dan, When you are transferring coins between wallets you need to keep them in BTC. In this case you only pay for the transaction fee.  Othwerwise you will be charged for translating Bitcoins to USD at Coinbase, then a withdrawal fee from Coinbase, then another fee may occure at the receiving wallet. And you are also exposed to the exchange rate risk during the time your coins are in fiat currency. If you want to pay your bills with Bitcoin, probably the easiest solution is to get a bitcoin debit card and make the payments through that.

Waleedsalem replied 2 years ago


Waleed answered 2 years ago


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