Reducing the cost of exchanging and withdrawing cryptocurrency

Bitcoin transfer costs are currently quite low, in some cases even cheaper than Ethereum. Now the cost fluctuates around 10 satoshi per byte of information, the average transaction cost is $0.30.

However, many users still pay fees for withdrawing Bitcoin from crypto exchanges; until this week, the average cost of withdrawing funds to Kucoin or Binance was $10. Binance has already reduced the cost of withdrawal by 50%, and Kucoin is only planning similar changes. 

Now the fee for withdrawing funds on Binance is 0.0005 BTC or $5.7. Kraken also reduced the Bitcoin I/O price to 0.0005 and Bitcoin Cash to 0.0001. Thus, the average price of such transactions is $5.7 for BTC and $0.13 for BCH.

There are two reasons behind this price decline: Segwit and transaction sorting. On February 23, the two largest crypto exchanges began supporting Segwit, with the number of transactions using the technology rising to 30%.

Due to the large number of simultaneous Bitcoin transactions, sorting has even more potential to reduce costs than Segwit. It is difficult to determine the exact percentage of sorted transactions, but it can be assumed that their number is increasing. As of last November, about $10 billion worth of Bitcoin transactions are taking place daily, according to Coinmetric. The difference is that previously it took 300,000 transactions to reach this amount, now it is 18,000. The number of transactions has decreased by 60% compared to November, the sorting of transactions is probably one of the reasons for this. ShapeShift recently stated that such transactions account for 2% of all Bitcoin transfers on their platform. 

While users welcome the initiative of Bitfinex, Kraken and Binance, they expect similar solutions from other crypto exchanges. For example, Bittirex currently charges 0.001 BTC, which is equal to $11.5. Although Coinbase has not yet reduced the price, customers of the platform have found a workaround that allows them to transfer funds to GDAX for free and withdraw them from there without fees. 

According to https://news.bitcoin.com