If you are a regular user of the Binance platform

You may well be aware that the exchange rate and withdrawal of cryptocurrency from the platform has a fee of up to 0.0005 Bitcoin.

This is regardless of the size of the amount to be withdrawn or the requirements of the network on which the coin operates.

Binance uses a process known as “batch aggregation” in order to keep transaction fees to a minimum.

This is done by squeezing as many outputs as possible in a single transaction.

Binance is thus able to reduce transaction fees by up to 80%.

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Binance also uses the method of maintaining an old entry address, which makes the payment process more cost-effective.

All of the above helps the Binance platform to confirm transactions relatively quickly and reduce costs as much as possible.

As is well known, most currencies operate in the blockchain system, which requires the unanimity of callers and miners on the transaction for proper transfer and approval.

If we look at the latest fee estimates we find that the average Bitcoin transaction fee currently is around 6 satoshis per byte (sat/B).

Whereas, transactions paid on Binance are charged around 100 sat/B.

Which makes it particularly attractive to miners.

by looking To the Binance hot wallet, we find that over a certain period of time the exchange sent a total of 7 batch batches, each containing an average of 36 exits.

Through these 7 batch payments, Binance paid a total of 0.01 BTC in transaction fees, equivalent to about $79.36 at current rates.

Now, assuming that each of the outputs in these aggregate payments represents a withdrawal to the customer and that these withdrawals are debited to 0.0005 BTC, we will find that the exchange has collected 0.125 BTC which is a value of $992 in withdrawal fees for transactions that originally cost the platform only $79.36.

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If things are going this way why does Binance charge 0.0005 BTC for each withdrawal?

Answer:

Although the platform has never made a public announcement about it

However, it can be said that by charging a fee of 0.0005 BTC per transaction

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Binance will be able to recoup any losses if bitcoin transaction fees rise to the peak levels seen recently in 2019.

Another likely answer is that the platform aims to profit like other platforms

And she needs a source that generates income and generates funds for her to enable her to continue what she is doing and expand to new geographic areas.

In addition to the development operations you carry out at the level of trading tools and other expenses.

It can be said that the platform generates 22,000 dollars per day from bitcoin transaction fees alone, without mentioning other currencies, i.e. an estimated amount of about 7 million dollars annually.

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