Crypto Adventures #2 - Exchanging your cryptocurrencies for Bitcoin costs money (Withdraw Fees)

Be aware when withdrawing low amounts of bitcoin from exchangers, old and new traders.

I won't mention the cost per trade (usually 0.1 to 0.25%) but the actual withdraw fee that centralized exchangers are applying 

One of the advantages of using cryptocurrency is it's low fees to send or pay some money through the internet. 

We use steemit wich interacts with the actual blockchain and it's fast and sent directly to other users wallets, so we don't "feel" the fees, as any other coin wallet the fees are pretty low usually.

But if you're sending to an exchange, that's a different story, because now you are requesting a service to be made for you (facilitade a trade). 

Decentralized exchanges will probably bring this kind of fees down but for now this is what we have, later i will test some decentralized exchanges.

Let's take 20 Steem

If i deposit and convert to Bitcoin in Bittrex i get 0.006 worth of btc and the full amount appears.

20 Steem as of now around is 20€

You would have to exchange your cryptos for bitcoin when or if you would like to cashout to USD, EUR, etc...

After converting STEEM to Bitcoins, you probably would have to send your bitcoins to an exchanger of your preference to trade for your local currency. 

This might be necessary if the exchanger doesn't allow exchanging bitcoins for you local currency.

The fee to do this in Bittrex is 0.001 btc to withdraw any amount of bitcoin (and some 0.002). This amount to more than 1€ and about 5% of my inital STEEM.

What is happening here ?

As this is a low amount of Steem, a higher percentage of your cryptocurrency disapears into the mega exchangers profits.

This happens because the exchangers apply a static fee for withdrawing bitcoin, this is pretty lame, because the price of bitcoin moves in hundreds and thousands of % in value as years go by.

What they should do, and probably some decentralized exchangers already done it or what we might see is a dynamic fee, even in centralized exchanges would be benefical.

For bitcoin specifically, since it's the one having the more global demand it has higher fees than other cryptos so we might hit a minimum of fees and they wouldn't even lower them anyway.

But for decentralized exchangers it should be easy to apply this and we should see them using some sort of formula with the coming global cryptocurrency indexes and data, and of course trying to keep low fees in the bitcoin network.