101 sats \ 5 replies \ @shibe 17 Jul 2023 \ parent \ on: Binance Officially Integrates Bitcoin Lightning Network bitcoin
inb4 Binance charges a $20 "network fee" even when using Lightning
What ??? are sure ?
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It was a joke about how much Binance charges for BTC withdrawals while displaying the fee as "network fee". I haven't used Binance in months but I remember it being ridiculously high, something like $10 or $15 even when on-chain fees were low.
Right now it's $1.5 (0.00005 BTC) network fee. This sounds reasonable, until you consider the following:
- On-chain feerates are currently around 6 sat/vB which comes out to around $0.25 for a segwit transaction
- Since Binance batches withdrawals, the cost for them to process your withdrawal is actually far lower than $0.25. The more outputs a transaction has, the cost per output asymptotically approaches (size of output * feerate)
Anyways, this announcement gave me a reason to log into my Binance account and check out what they're charging for Lightning. They give a fee range of 0.000002BTC-0.00013BTC ($0.06-$3.94). This still seems too high by Lightning standards even when you account for proportional fees for very large withdrawal amounts. I have also never paid anywhere near $0.06 for small transactions of $1-20 on Lightning, so it still seems theres a Binance tax added to this.
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I check, and i found this :
Lightning Network fees are negligible. The base fee is just 1 Satoshi (0.00000001 BTC), which is roughly equal to 4 cents.
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1 Sat is about 0.03 cents or $0.0003
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Every node charges their own feerate on Lightning. There are also generally two types of fees on Lightning: Base Fee, which is a fixed amount per transaction (usually 1 sat), and the proportional fee which is a percentage of the amount being transferred.
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