#BinanceHODLerHOME Understanding Fees When Using Bitcoin ($BTC)

When trading or transferring Bitcoin, understanding the fees involved is crucial for efficient financial management.

1. Network fees (mining or transaction)

These fees are paid to miners for including your transaction in the blockchain.

How they work: They are calculated in satoshis per byte (sats/vB).

Factors influencing: Network traffic, transaction size, and desired priority.

Helpful tip: Scheduling your transactions during low congestion times can significantly reduce costs.

2. Trading fees on exchanges

Platforms like Binance or Coinbase charge a commission for each trade (buy or sell).

Typical structure: A percentage of the trade (for example, 0.1% per order).

Common discounts:

Using native tokens (e.g., paying with BNB on Binance).

Using maker orders (liquidity provider) instead of taker orders (liquidity taker).

3. Withdrawal fees

Sending Bitcoin from an exchange to an external wallet also incurs a cost.

Type of fee: Generally, it is a fixed fee (in BTC), varying by platform.

Important: These fees may be higher during congestion or if fast transactions are prioritized.

4. Difference with Ethereum

Unlike Ethereum, Bitcoin does not have gas fees for smart contracts, but it is limited by block size (1 MB). This can create competition for space during times of high demand.