> Blog > ETH Withdrawal Fees Comparison

Published June 27, 2022

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Ethereum (ETH) has the second-largest market cap in the entire crypto market trailing only behind Bitcoin. While bitcoin is a cryptocurrency, Ethereum is much more than that. There’s an entire ecosystem built upon it which is the backbone of newer trends like decentralized finance (DeFi) and non-fungible tokens (NFTs). 

Because all of these use cases rely on ETH, the price of withdrawing it could be hefty and range from $10 to over $100, depending on the demand on the network. For some newer traders, these fees can be daunting and deter them from getting involved. Luckily, we have a list of the ETH withdrawal fees on different exchanges, so users can find the best deal possible. 

What are Crypto Withdrawal Fees?

When trading in the crypto market, users need to get used to the transaction costs, especially when it comes to ETH. There are two elements to the withdrawal fees. First, there are the exchange fees that users pay to withdraw crypto. These are hard to avoid if using a centralized exchange. However, certain exchanges, like FTX, offer free withdrawals for staking FTT.

There are also the network fees, also known as gas prices on ETH. Users pay those so the transaction can be processed on the Ethereum network. The average transaction fee on Ethereum varies a lot, depending on the traffic on the network. For a visual representation on network traffic, check out txstreet! During NFT bull runs, the transaction costs go upwards of $100, but the fee structure remains the same.

The network fees go to the ETH miners who secure the network and record the transaction on the blockchain.

Keep in mind that other cryptocurrencies have a different architecture, like Solana, which allows them to provide users with low transaction fees, regardless of the traffic on the network. 

With that out of the way, let’s uncover the big mystery of the crypto market – the big spread on different exchanges.

Why is there such a big spread on crypto exchanges?

Typically in trading, the spread is referred to as the difference between the bid and the asking price of a certain asset. 

As we already established, the average transaction fee depends on the network congestion. Look at ETH as a crypto highway. The higher the traffic, the more expensive the fees are. That’s because cryptocurrencies like bitcoin and Ethereum have limited block space, so there’s a capacity constraint. If users want their transactions to be processed faster, they would have to offer higher fees as an incentive to cut through the traffic so to speak.

Can you avoid paying high fees?

It’s hard to avoid paying high fees, especially on Ethereum. There’s a base fee which is the cost of processing the transaction. Users could pay a “priority fee” which works as a tip. It’s an incentive for the miners to process this transaction faster. It’s by no means a necessity, but users who don’t pay it will need to be patient and wait for the transaction to be processed. 

The same is true for the Bitcoin network. Users could customize the fee, offer the minimal fee, and avoid paying a priority fee, but miners prioritize transactions that offer tips. Also, if the fee is too low, the transaction may never be processed because there’s no incentive.

Are those the only fees?

Those were only the network fees. Centralized exchanges like Coinbase, FTX, and Binance all charge fees on withdrawals and deposits. However, there are ways to lower the costs by taking advantage of different opportunities. It’s also important to note that FTX has the lowest fees in the market currently.

How Much Does it Cost to Withdraw ETH?

It depends on the day and the price of ETH. If there are a lot of transactions and traffic on the network, users need to be prepared to spend at least $50. And if ETH is claiming new all-time highs, the costs would be even higher. But if users want to withdraw ETH during bear markets (like now) it would cost significantly less. Maybe around $10-$20.

Why is there such a big difference in the average transaction fee on the ETH network? To answer that question, we need to take a look at how gas prices are calculated on the Ethereum network.

How is the gas fee calculated?

Ethereum has a unique architecture that uses “gas” as a way to measure the amount of work miners do to execute specific operations on the network. Each ETH transaction requires computational power, so each transaction has a gas fee to complete the transaction. The gas fees are paid in Ethereum’s native currency, ETH.

The London Upgrade implemented in August 2021, made changes to the Ethereum network, making the fees more predictable. Now, there’s a better fee estimation, higher transaction inclusion and ETH is being burned instead of being given to the miners.

Since the upgrade, every block has a base fee, which is the minimum price per unit of gas for inclusion in the block. This fee is calculated by the network based on the demand for block space. Because the base fee is burnt, users are incentivized to use priority fees in their transactions to compensate the miners.

The unit of gas on ETH is gwei. One gwei is worth one-millionth of ETH or 0.000000001 ETH. Calculating gas prices is fairly simple. You’ve Gas Units (limit) * (Base fee + Tip). 

Let’s say you want to send 1 ETH to a friend of yours. The gas limit on ETH is 21,000 units, the base fee is 100 gwei and you decide to tip 10 gwei. Using the formula, we would get 21,000 *(100+10) = 2,310,000 gwei which is around 0.00231 ETH, so you’d have to spend 1.00231 ETH in total. Your friend will get 1 ETH, the miner would get the tip of 0.00021 ETH and the base fee of 0.0021 ETH will be burned.

If you want to save on the transaction costs, you could set a max fee for the transaction which is the maximum you’re willing to pay for the transaction. That way you won’t have to worry about overpaying.

A Comparison of ETH Withdrawal Fees Within Different Crypto Exchanges

While there are a lot of exchanges out there, for the purposes of this article, we compared the five most popular ones – Binance, Kraken, Gemini, OKX and FTX.

Here’s a table breakdown of the ETH withdrawal fees on:

For full details click here.

Note: 1% of all net trading fees on FTX will be donated to the world’s most effective charities via the FTX Foundation. One of the key features of FTX is promoting effective altruism – a life philosophy based around maximizing the good you can do in the world by helping other people. That’s why the FTX Foundation led by Sam Bankman-Fried matches up to $10,000 per day per user donation.

How to Choose the Best Crypto Exchange with the Lowest ETH Withdrawal Fees?

Choosing the right exchange for each user depends on the type of user. If you’re going to trade crypto, an exchange like FTX makes sense – it has the lowest fees, free deposits and withdrawals* and donates 1% of all profits to charity.  But if a user is more passive, rarely withdrawing ETH or other ERC-20 tokens, it doesn’t really matter which exchange is used. 

*ERC-20

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