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Glossary entry

Withdrawal Fee

Trading & Markets

A withdrawal fee is what an exchange deducts to send crypto on chain; it varies by network and hits small withdrawals hardest.

Definition

A withdrawal fee is the amount an exchange deducts when you move crypto from your account to an external address. It generally covers the network fee the platform must pay to broadcast the transaction, plus any operational margin the platform adds. Because it is usually charged as a flat amount of the asset rather than a percentage, it weighs far more heavily on small withdrawals than on large ones. The same token can carry very different fees depending on the network chosen, since congestion and base costs differ between chains. Some platforms batch several customer withdrawals into one on-chain transaction to reduce cost. Fee schedules change, so check the quoted figure on the withdrawal screen before confirming.

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